The ABCs of Six Sigma

1
The ABCs of Six Sigma

• Six Sigma Methodology in todays
• corporate environment

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
Why Todays 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
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
What is Six Sigma?

• Work is completed in a Project Team
• Led by a companys 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.

6
Statistically Speaking
Sigma is the Greek letter that is a statistical
unit of measurement used to define the standard
deviation of a population. It measures the
variability or spread of the data.
Six Sigma is also a measure of variability. It is
a name given to indicate how much of the data
falls within the customers requirements. The
higher the process sigma, the more of the process
outputs, products and services, meet customers
requirements or, the fewer the defects.
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Statistically Speaking
Defects per Million Opportunities DPMO
s
Yield
69.2 93.32 99.379 99.977 99.9997
2 3 4 5 6
308,537 66,807 6,210 233 3.4
8
History

• Six Sigma Black Belt methodology began in late
  80s/early 90s
• 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

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Six Sigma is a System
Design/ Redesign Methodology
Improvement Methodology
Deployment Infrastructure Management

• 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

10
Deployment Process for Driving Sustainable
Results
Management engagement, resource commitment,
productive teams
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Lean Six Sigma Tools
Analyze
Control
Improve
Measure
Define

• Project ID Tools
• Project Definition Form
• Value of Cycle Time
• Net Present Value Analysis
• Internal Rate of Return Analysis
• Discounted Cash Flow Analysis
• PIP Management Process
• RACI
• Quad Charts

• Process Mapping
• Value Stream Mapping
• Process Cycle Efficiency
• Lean Six Sigma Metrics
• Process Sizing
• Kaizen Events
• Multi-Voting Techniques
• Pareto Charts
• CE/Fishbone Diagrams
• FMEA
• Check Sheets
• Run Charts
• Control Charts
• Gage RR
• Subjective Measurement Systems

• Cp Cpk
• SupplyChainAcceleratorSM Time Trap Analysis
• Analytical Batch Sizing
• Multi-Vari
• Box Plots
• Interaction Plots
• Regression
• ANOVA
• CE Matrices
• FMEA

• Brainstorming, Affinity
• Benchmarking
• Kaizen Events
• Pull Systems
• Generic
• Replenishment
• Part Stratification
• Setup Reduction
• TPM, 5S
• Process Flow
• Line Balancing
• DOE
• Hypothesis Testing
• Force Field
• Tree Diagrams
• Gantt Charts

• Check Sheets
• Run Charts
• Histograms
• Scatter Diagrams
• Control Charts
• Visual Control Tools
• Poka-Yoke
• Pareto Charts
• Interactive Reviews

Lean tools highlighted in red
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Whats 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

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Deployment Components

• Whats 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

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Deployment Must Haves

• Full executive commitment (CEO and direct
  reports)
• PL/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)

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Three Potential Deployment Alternatives Pros
and Cons
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Six Sigma Commitment Required at Every Level

• Owns vision, direct, integration, results
• Leads change

Executives / BU Leadership
All Employees
Project TeamMembers
Deployment Champions

• Leads business unit performance improvement
• Full time

• Provide project-specific support
• Part time

• Understand vision
• Apply concepts to their job and work area

MasterBlack Belts
Project Sponsors

• Trains and coaches Black Belts and Six Sigma
  Green Belts
• Leads large/complex projects
• Full time

• Project owner
• Implements solutions
• Owns financial results
• Part time as part of job

Black Belts
Green Belts

• Leads and Facilitates problem solving
• Trains and coaches Project Teams
• Full-time

• Participate on Black Belts teams and/or lead
  small projects
• Part time on projects

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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

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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

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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 its completion

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WIIFM (Whats 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

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The ABCs of Six Sigma Conclusion

• Michelle Goodman, MBA,PMP Program ManagerSix
  Sigma Deployment Champion
• 13100 Wayzata Blvd, Suite 160Minnetonka, MN
  55305(651) 261-9422 (Cell)mgoodman_at_trissential.c
  omwww.trissential.com