Keys for Successful Six Sigma Deployment

Transcription

1 Keys for Successful Six Sigma Deployment Dr. Jack West Page 1

2 Agenda Why Has Six Sigma Lasted So Long? Executive Behavior Champion Engagement Project Selection Resource Allocation Reward and Recognition Page 2

3 Other Approaches Have Come and Gone Quality Circles Total Quality Management Business Process Reengineering Zero Defects Page 3

4 Unique Features of Six Sigma Michael Harry All improvements are based on individual projects All projects must have direct line of sight effect on an organization s strategic objective The only score keeper is the controller Projects focus on Voice of the Customer Page 4

5 American Customer Satisfaction Index Composite Page 5

6 American Customer Satisfaction Index Personal Computers 82 Why have the amazing improvements in 80 personal computer performance not translated into increased customer satisfaction? Page 6

7 Six Sigma Longevity Based On Proven Results For: Improving quality and customer satisfaction Achieving break through business results Page 7

8 Agenda Why Has Six Sigma Lasted So Long? Executive Behavior Champion Engagement Strategic Alignment Project Selection Resource Allocation Reward and Recognition Page 8

9 Initial Executive Responsibilities Establish the corporate commitment Set the challenge: Achieve 6s process performance Choose high-potential individuals to become Champions and Black Belts Participate in/support training Establish a Six Sigma business scorecard Assure integration in all aspects of the business: Reward and recognition Human resource practices Consistent measurement Page 9

10 Ongoing Executive Responsibilities Require that all presentations using data include mean and variation Ask for an explanation of the causes for variation Challenge all aspects of the organization to achieve worldclass levels of performance and benchmark levels of process capability (C pk > 1.33) accomplishments Disseminate best practices Support statistical thinking Page 10

11 How is the Data d? Levels of Analysis: 1. We only use experience, not data. 2. We collect data, but just look at the numbers. 3. We group the data so as to form charts and graphs. 4. We use census data with descriptive statistics. 5. We use sample data with descriptive statistics. 6. We use sample data with inferential statistics. Note the switch from lagging to leading indicators? LSL T USL What level of analysis do you use to support your business decisions? Page 11

12 Insist Data Be Presented Practically what decision is this data designed to support? Graphically show me a picture Analytically how do you know? Page 12

13 Agenda Why Has Six Sigma Lasted So Long? Executive Behavior Champion Engagement Project Selection Resource Allocation Reward and Recognition Page 13

14 Primary Responsibilities of Champions Select projects Manage the Six Sigma implementation Select Black Belts Select Master Black Belts Review projects Implement and monitor control plans Disseminate project results Page 14

15 Importance of Strategic Alignment Critical for the business Assures executive interest Focuses resources Synergy among projects Page 15

16 Phase Reviews Objectives, Deliverables and Failure Modes Charter SIPOC Data collection plan Project plan Communication plan Dominate failure mode Boil the ocean projects Page 16

17 Phase Reviews Objectives, Deliverables and Failure Modes establish process baseline Process and Value Stream Map ment System Analysis Process capability Dominate failure modes Not fixing the measurement system Scope creep Page 17

18 Phase Reviews Objectives, Deliverables and Failure Modes identify the process inputs that are statistically significant and practically important Hypothesis test Mathematical model Dominate failure modes Jumping to conclusions Scope creep Page 18

19 Phase Reviews Objectives, Deliverables and Failure Modes find the optimal operating parameters Designed experiments Pilot implementation Dominate failure modes Not continuing to the control phase Scope creep Page 19

20 Phase Reviews Objectives, Deliverables and Failure Modes Lock in the gains charts Mistake proofing Standard work Dominate failure modes Not implementing the control plan Not assigning the next project Page 20

21 Additional Champion Responsibilities Acquire and utilize practical statistical knowledge. the path to implement 6s across the business. Realize the gains by supporting the 6s project teams and removing the roadblocks to their success. Influence peers in the application of Six Sigma. the project teams for their efforts. Coach and mentor Black Belts and Master Black Belts Page 21

22 Agenda Why Has Six Sigma Lasted So Long? Executive Behavior Champion Engagement Project Selection Resource Allocation Reward and Recognition Page 22

23 Project Selection Alignment to strategic objective Breakthrough improvement required Executive with skin in the game Compatible with DMAIC methodology Reduce defects Increase yield Reduce cycle time Page 23

24 Project Selection Continued Scope 6 X 6 Clear problem statement d boundaries Quantified success criteria No preconceived solution Page 24

25 Agenda Why Has Six Sigma Lasted So Long? Executive Behavior Champion Engagement Project Selection Resource Allocation Reward and Recognition Page 25

26 Six Sigma Roles and Responsibilities Executives Owns vision, direction, integration, results Leads change Project Team Members Project selection Project owner Implements solutions All employees Part-time Project-specific Champions Master Black Belts Understand vision Apply concepts to their job and work area Black Belts Green Belts Part-time Help Black Belts Lead small projects Full time Train and coaches Black Belts Technical and project consultants Full time Lead Six Sigma Projects Train and coach Project Teams Page 26

27 Resource Allocation Champion One per business unit/location One hour review per phase for each project Manage the overall deployment 5% - 50% depending on scale Black Belts Two to five percent of population Full time are 30% more productive than part time on a FTE basis Manage > 5 projects per year Page 27

28 Resource Allocation Green Belts Five to ten percent of population Part time Manage/support projects within their work process Complete 1or 2 projects annually Team Members Four to six people per team Part time ~ 2 hours per week Page 28

29 Quantifying the Impact Sigma Level Defects Per Million Opportunities 2 308,537 (Noncompetitive) Cost of poor quality > 40% 3 66, % of sales 4 6,210 (Average companies) 15 25% of sales % of sales (World class) <1% of sales Source: Mikel Harry & Richard Schroeder Six Sigma the Breakthrough Strategy Revolutionizing the World s Top Corporations, Doubleday, 2000 Each sigma shift provides a 10 percent net income improvement. Page 29

30 Agenda Why Has Six Sigma Lasted So Long? Executive Behavior Champion Engagement Project Selection Resource Allocation Reward and Recognition Page 30

31 Reward and Recognition - Alternatives Integral to organization s system Independent system Page 31

32 Integral to Existing System Pros Demonstrates Six Sigma s integration into the business No new procedures or policies Cons Six sigma projects and Black Belts tend to dominate the reward allocations May build resentment of Black Belts Page 32

33 Independent System Pros Demonstrates the importance of Six Sigma Does not overwhelm the existing system Cons May create the perception that Six Sigma is a program not a normal part of the business Page 33

34 Reward and Recognition No one right way The wrong way is not to have a defined policy Page 34

35 Conclusions Six Sigma has evolved from its roots in the 1980 s to become the dominate process improvement strategy It is more accessible than ever, but no easier to manage Thirty years of experience have taught us the importance of: Executive Behavior Champion Engagement Project Selection Resource Allocation Reward and Recognition Page 35

36 Your Turn Page 36