Driving Growth, Productivity

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• Driving Growth, Productivity
• Performance

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KONIGs Vision

• We will be a premier growth company, delivering
  unsurpassed customer and shareholder value
  through talented people and innovation.

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Year 2000 Goals

• Delight customers at every opportunity
• Make the numbers
• Accelerate growth and productivity via Six Sigma

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Six Sigma

• KONIGs overall strategy to
• Accelerate improvements in all processes,
  products services
• Reduce cost of poor quality by eliminating waste
  and reducing defects and variations

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Why Six Sigma?

• Proven way to drive financial
  performance excellence
• Enables our business strategy by
• Identifying customer needs
• Crafting a value proposition
• Designing business models

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Why Six Sigma?

• Appropriate for every business function
• Provides many tools, aids, skills
• Promotes fact-based decision making
  breakthrough thinking

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Is Six Sigma Worth Effort?

• 2004--1 Million
• 2005--2 Million
• 2006--4 Million

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Sigma--Our Measurement

• Six Sigma is our strategy
• Sigma (s) is our measurement of quality to know
  how effectively we eliminate defects variations

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Sigma--Our Measurement

• Defects/million Error-free Rate
• Six Sigma 3.4 99.9997
• Five Sigma 233 99.977
• Four Sigma 6,210 99.4
• Three Sigma 66,810 93

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Why Strive for Six Sigma?

• If electricity worked at
• 4s no lights about 1 hour/week
• 6s no lights about 2 seconds/week
• Driving 40 miles per hour if your car operated
  at
• 4s 30 repair minutes every 3,000 miles
• 6s 30 repair minutes every 6,000,000 miles

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Reaching Six Sigma Performance

• Use this method to solve problems
• Define problems in processes
• Measure performance
• Analyze causes of problems
• Improve processes -- remove variations
  and non value-added activities
• Control processes so problems dont recur

DMAIC!
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Implementing The DMAIC Method

• Many tools, aids skills help to
• Define
• Measure
• Analyze
• Improve
• Control

DMAIC!
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Among Our Tools ...

• Process Mapping
• Failure Mode Effect Analysis
• Measurement System Evaluation
• Statistical Tests
• Design of Experiments
• Control Plans

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Among Our Tools

• Quality Function Deployment (QFD)
• Activity Based Management
• Enterprise Resource Planning
• Lean Enterprise

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Learning About Six Sigma

• Everyone learns basics of 6s
• Managers/supervisors and those responsible for
  processes become Green Belts
• Black Belt, Lean, Activity-Based Mgmt. and Total
  Productive Maintenance Experts Masters, all
  available to help businesses

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Six Sigma Plus Competencies

• Green Belt
• Black Belt
• Master Black Belt

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Six Sigma Plus Competencies

• Lean Experts Masters
• Activity Based Management Experts Masters
• Total Productive Maintenance Experts Masters

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Sharing Six Sigma Plus Knowledge

• Quest for Excellence
• Share best practices
• Improve participants skills
• Celebrate Six Sigma Plus results
• Select Premier Achievement Award team

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Six Sigma Plus in Action
Example!

• At the warehouse
• Less waste, more first quality production
  greater efficiency
• Employee satisfaction increased smoother running
  process eased frustration associated with
  equipment breakdowns.

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Six Sigma Plus in Action
Example!

• Better Service Customers benefit via use of
  Activity Based Management, Lean Manufacturing
  other tools
• And these improvements led to increased revenue
  productivity for KONIG!

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Six Sigma Plus in Action
Example!

• Administratively An Industrial Automation and
  Control team
• Reduced errors on 100,000 freight invoices
• Decreased invoice cycle time from 35 to 25 days
  more reductions planned using electronic invoicing

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You know my methods. Apply them.
--Sherlock
Holmes Sign of Four by Arthur Conan Doyle,
1890
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