Six Sigma provides a structured & focused Capability Gary Cone2.pdf · ¿Six Sigma provides a...

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26© Global Productivity Solutions, LLC.; All Rights Reserved

Results to Date Results to Date –– Mexico SP3Mexico SP3

Mexico SP3

90%

95%

100%

105%

110%

FY 03

/04 Jul 0

4

Ago 0

4Se

p 04Oct 0

4No

v 04Dic

04En

e 05Feb

05Mar 0

5Ab

r 05May

05Jun

05Jul

05Ag

o 05Se

p 05Oct 0

5No

v 05Dic

05En

e 06Feb

06Mar 0

6Ab

r 06May

06Jun

06Jul

06AM

MJ

FY 06

/07

MJJ 99.4%

• FY 05/06 Average at 97.1 %• AMJJ ’06 Average at 98.6 %• P3 Months @ 99.4 %


Learning to DateLearning to Date

¿ Six Sigma provides a structured & focused approach to problem-solvingÚStructured solution to a complex business processÚDeep Gap Analysis and data-driven conclusions

performed in all functions

¿ CapabilityÚ Improved analytical skills – Green / Black BeltsÚDocumentation and Standard Work approach to

sustain results

¿ CollaborationÚWork across boundariesÚReliable Operation enables business strategy

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Cultural ElementsCultural Elements

¿ Production / Marketing CMK empowerment to face realityin Financial Objectives and Initiative Forecast (vs. yielding to financial / hierarchy pressure)

¿ Data-driven approach to influence Volume Forecast –promotes collaboration vs. frustration & lack of trust (GBU / MDO )

¿ Enhance discipline to enforce initiative success criteria

¿ External Focus & Innovation drive business growth (vs. more volume in forecast… more Budget… that triggers negotiation within MDO)

¿ Ownership & Accountability to track key quantitative operational variables, face reality and tackle barriers to growth

© Global Productivity Solutions, LLC., All Rights Reserved

Executing Six SigmaExecuting Six Sigma

Review of the BasicsReview of the Basics

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What is Required for Excellence?What is Required for Excellence?

Strategic PlanningStrategic Planning

Project ArchitectureProject Architecture

Human ArchitectureHuman Architecture

Business AssessmentBusiness Assessment

Lean Enterprise ToolsLean Enterprise Tools

Six Sigma Tools Six Sigma Tools

Digitization ToolsDigitization Tools

Knowledge Knowledge Management Management

SystemsSystems

Integrated Integrated Business SystemsBusiness Systems

Value Stream AnalysisValue Stream Analysis

®

Policy DeploymentPolicy Deployment


¿ Determine critical inputs¿ Define mathematical model¿ Implement and validate model

Ú Establish critical input levels

The RoadmapThe Roadmap

¿ Optimize critical inputs

¿ Monitor output/ control inputs¿ Eliminate waste ¿ Update & Enforce Business System

Ú Lean Operating System

¿ Refine and Explain Project¿ Form Team

¿ Document Process¿ Establish process capability

¿ Verify Measurement Systems

Ú List all variation sources

¿ Develop evaluation plan¿ Study response variables¿ Implement obvious solutions

¿ Analyze input variables

Ú Short list of inputs6σIImprovemprove

CControlontrol

AAnalyzenalyze

START

MMeasureeasure

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Six Sigma Road MapSix Sigma Road Map

• Science vs. Art

• Process Improvement / Reliability / Standardization

• Project Charter• Process Map• Cause & Effect Diagram (Fishbone)• Cause & Effect Matrix• Data Collection Plan• Basic Statistics

Define andMeasure Analyze Improve Control

• Process Capability • Measurement System Analysis• Failure Modes and Effects

Analysis• Mistake Proofing• Multi-Vari Studies• Correlation/Regression

• Hypothesis Tests• Process Modeling & Simulation

• Lean Process Controls• SPC• Final Report

Define the project, gather all the information known about the problem (effect), and identify all sources of

variation (causes)

Analyze the data to determine which sources of variation (causes) do not have an impact on the

process output

Identify and implement improvements to process that reduce variation and

improve the output.

Construct and implement controls that ensure improvements are

maintained

All x’s Few x’s Critical x’s Controlled x’s

Step 0: Team Setup & Leadership Concurrence

Step 1: Analyze the situation

Step 2: Restore Process

Step 3: Improve the Process

Step 4: Standardize / Reapply


Executing Six SigmaExecuting Six Sigma

Leadership’s Role and Leadership’s Role and ResponsibilityResponsibility

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food for thought..…

the systems that deliver value to our customers are perfectly designed to

achieve the results we get.

-Unknown

As Leaders, we own the systems.Therefore, only we can change them.


Key Leadership Principles Key Leadership Principles -- InvolvementInvolvement

The involvement of Leadership –

AlignMobilize

AccelerateGovern

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Involvement Involvement -- AlignAlign

¿ Using a model of Business Excellence, link customer requirements to business strategy and core business processes.

¿ Create strategy execution targets, stretch goals and appropriate measures.

The goal is to provide sustainable, measurable,bottom-line results that drive business goal achievement


Involvement Involvement -- MobilizeMobilize

¿ Transfer power to teams to drive improvements using: Ú Projects selected by alignmentÚ Project Management toolsÚDisciplined problem solving methods

¿ Organize the team efforts to include: Ú Clear chartersÚ Aggressive criteriaÚ Rigorous reviews

¿ Provide the teams with just-in-time training and mentoring to allow them to act.

¿ Require results – require simplification of systems and removal of barriers

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Involvement Involvement -- AccelerateAccelerate

¿ Acceleration can be achieved by employing an adult learning modelÚ combine appropriate education with real-time project work

and coachingÚ quickly bridge from theory to results

¿ This is the chartering of improvement projects and the associated training followed up with mentoring

The motivation to act is temporary. We must drive projects to timely results.


Leadership InvolvementLeadership Involvement

GovernGovern

¿ Leaders execute their strategy by driving improvement of Key Business Objectives

¿ Structured review processes require: Ú reviewing key measures of resultsÚpressing for process and project details where

needed¿ Require knowledge-sharing on a project by project basisÚ Create opportunities for knowledge-sharingÚ Put systems in place (knowledge networks) to

institutionalize knowledge-sharing

¿ Removed barriers

¿ Controls are put in place, respected and enforced¿ Systems are updated

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Understanding Understanding –– What do you need to know?What do you need to know?

¿ Leadership behavior is much, much more important than specific knowledge of the Black Belt / Green Belt tools.

¿ The Leadership only needs to know enough to understand that a focus on responsiveness is a superior business strategy and that there are two basic paths to addressing responsiveness. Ú The first is a focus on elimination/reduction of non-value

adding activities and goes by the label of Lean, Supply Chain Management, Just In Time,....The tools include all of the team and process mapping tools used by Six Sigma as well as Standardized Work, set up time reduction, TPM, Kaizen events,...

Ú The second is a focus on the reduction of variation and goes by the label of Six Sigma. The focus on non-value adding activities should precede the focus on variation.


Stamina Stamina –– Is business a Marathon or a Sprint?Is business a Marathon or a Sprint?

¿ The real trick with Leadership is maintaining their ongoing attention. Ú If it is Six Sigma this year, Supply Chain Management next

year, Kum By Ya the year after,... you are destined to fail. ¿ Leadership has to decide what the growth and efficiency

strategies are and what label they will travel under for the next several (5 - 10) years. Ú The label is not near as important as the consistent

message. Ú They must review (and demand) results monthly as part of

the normal business review cycle and celebrate as often as appropriate.

Ú There can be no dissenters and no stragglers -- this is the real job of Leadership.

¿ There must be regular renewal

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Six SigmaSix Sigma

An Integrated Approach An Integrated Approach --What Else is NeededWhat Else is Needed


What is Required for Excellence?What is Required for Excellence?

Strategic PlanningStrategic Planning

Project ArchitectureProject Architecture

Human ArchitectureHuman Architecture

Business AssessmentBusiness Assessment

Lean Enterprise ToolsLean Enterprise Tools

Six Sigma Tools Six Sigma Tools

Digitization ToolsDigitization Tools

Knowledge Knowledge Management Management

SystemsSystems

Integrated Integrated Business SystemsBusiness Systems

Value Stream AnalysisValue Stream Analysis

®

Policy DeploymentPolicy Deployment

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Having Good Technical Solutions is the EASY part. A Good, Buy-In Strategy is KEY.

¿ Statistics on change show,73% of all change efforts FAIL.

¿ Successful Change Requires:

Technical Solutions+ Buy-In By Key Stakeholders = Effective Change Results

Improvement is a journey of change...BUT!Improvement is a journey of change...BUT!


Some Precepts for Developing a Good BuySome Precepts for Developing a Good Buy--In StrategyIn Strategy

¿ Have well grounded, widely understood Vision and Strategies.

¿ What gets measured, gets done; what gets rewarded, stays done.

¿ High levels of trust and commitment must be achieved through involvement and cooperation.

¿ Roles and accountabilities must be clarified throughout the change process - don't just expect people to know what to do

¿ Listen carefully to all stakeholders, and satisfy their needs.¿ Over-communication is impossible.¿ Never underestimate individual resistance to change.¿ Systems are getting what they were designed to get.

Improvement requires changing the systems.

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Summarizing The Power Of Six SigmaSummarizing The Power Of Six Sigma

¿ Integral to a world classworld class business system,

¿ Demands a common direction and purposecommon direction and purpose shared by all,

¿ Requires teamworkteamwork,

¿ Combines aggressive goalsaggressive goals with a roadmaproadmap and a set of toolstools,

¿¿ Tools applyTools apply throughout entire lifecycleentire lifecycle of a product or service, but are best applied early,

¿ Produces knowledge for improved cycle timeimproved cycle time, , reduced reduced defectsdefects, and , and lowerlower cost.cost.

Delivering Defect-Free Products and Services Faster, Cheaper, Better …..adds up to Improved Business Results.


Facility Management Facility Management Case StudiesCase Studies

Facility Move ProcessFacility Move Process

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¿Creation of a timeline ¿Creation of a budget¿Assignment of team leaders¿Action item list¿Communication

Six Sigma Goal: Smooth relocation with no surprises!

Facility Move ProcessFacility Move Process


Timeline CreationTimeline Creation

¿ Coordinate with

ÚSuppliersÚVendorsÚCustomers

¿ Identify Completion/Target Dates¿ Identify long-lead items (telecom equipment)¿ Coordinate new build-out schedule

Voice of the Customer Tools were critical

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Budget Creation and Budget Creation and

Assignment of ResponsibilitiesAssignment of Responsibilities

¿ Budget CreationÚ Bid Process for VendorsÚ Identify Hold-over contingencyÚ Identify what-if scenarios/miscellaneous costs

¿ Assignment of Team LeadersÚ Creates Responsibility and AccountabilityÚ Creates communication with EmployeesÚ Active Participation on day of move

Extensive use of Standard Work practices and project management methods


Action Item List and CommunicationAction Item List and Communication

¿ Action Item ListÚDetailed list – average move contains 50 itemsÚ Identifies target completion datesÚ Allows a linear flow

¿ CommunicationÚWeb-based 24/7 communicationÚDirectory of Leaders and VendorsÚWeekly Conference CallsÚ Creation of a post-move Scorecard

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Standardized Move Check ListStandardized Move Check List

Clear assignments and schedules provided accountability for success


Case Study Case Study -- 1: Office Move1: Office Move

¿ Consolidation and relocation of sales offices from 30,000 ft2 to 22,000 ft2

¿ National sales office with 100 employees having $800,000 of sales per day

¿ High exposure and visibility within company as estimated losses due to consolidation and relocation were approximately $5,000,000

¿ Move occurred over a weekend¿ Telephone system and computers used hot cut-over between

6PM and 11PM on Friday night – up and running at new location on Saturday morning

Results – No lost man hours due to move and no lost sales!

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Case Study 2 Case Study 2 -- Warehouse MoveWarehouse Move

¿ 70,000 ft2 warehouse operation relocated into two existing warehouse operations located in excess of 500 miles from original warehouse

¿ All product (3,000 SKU’s) loaded into 800 pallet locations for moves

¿ Product was prioritized Ú Slowly selling items moved over 2 weeksÚ Faster selling items moved within 1 week

¿ After move, pallets were broken back down to SKU’s for bin storage in new warehouses

Results – No lost sales!


ReviewReview

¿ Four Dimensions of Six Sigma:Ú Management Philosophy

� Are the basics in place?

� Do you have a strategy for continuous improvement?� Do you have metrics in place that drive continuous improvement o f your

critical processes?

� Do you have metrics that measure progress toward achieving the overall business objectives?

Ú Benchmarking Metric� Competitiveness� How do you decide where to deploy resources and where to go learn?

Ú Problem Solving Roadmap� How effectively does the company manage “ad hoc” projects?� Does everyone have a fundamental problem solving tool set?

� Is there a system to provide new tools – useable and used – that facilitates continuous improvement?

Ú Leadership� Is the system in place?� Do all stakeholders have skin in the game?

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