8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 1/22
Black Belt Training Ford Proprietary
Copyright © 2005-2006, Ford Motor Company – All Rights Reserved
Utilizing 6-Sigma to Deliver
the Business Plan
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 2/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 1
Module Objectives
By the end of this module, the participant will be able to: Communicate the concept and usage of Value Stream Maps
Describe how 6-Sigma is utilized to deliver Ford Motor
Company’s Business Plan (Closing the gap between Current
and Future State) Understand the integration of 6-Sigma into the Global Quality
Operating System
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 3/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 2
__/wk
Value Stream Mapping Overview
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 4/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 3
What Is A Value Stream?
A value stream is all of the actions required tochange raw materials into a product delivered to
the customer
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 5/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 4
What Is Value Stream Mapping?
A visual depiction of the complete value stream,including material, product, and information flow
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 6/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 5
Value Stream Mapping
_1/wk
Current State
Future State
Becomes Current State
Future State
Becomes Current State
Gap
Gap
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 7/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 6
Mapping Icons
I200 Pieces
1 Day
Assembly
ManufacturingProcess
ACME
Supply
OutsideSources
CO=35 min
CT=48 sec
3 Shifts
Data Box Inventory
2 / wk
Truck Shipment
PUSHSystem
Finished Goodsto Customer
FIFOFirst In First Out
SequencedFlow
Buffer orSafety Stock
PhysicalPull (or
Withdrawal)
Manual InformationFlow
Electronic InformationFlow
Marketplace(or
Supermarket)
or
2% Scrap
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 8/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 7
Value Stream Mapping - Current State
20 days
Cut Weld #1 Weld #2 Deflash Paint Assembly
I I I I I
Production
Lead Time
Processing
Time
Supplier
Production
Control
I
Shipping
2x/mo
Customer Orders
Daily Priorities
Orders 60
days out
ShopOrders
I6000 3600 3600 6000 7200 4800
To Weld Area
Supervisor
C/T = 15 sec
C/O= 15-60 min
OEE = 85%
27,000 sec.
avail.
C/T = 45 sec
C/O= 15min
OEE = 65%
27,000 sec.
avail.
C/T = 45 sec
C/O= 15 min
OEE = 65%
27,000 sec.
avail.
C/T = 20 sec
C/O= 0 min
OEE = 80%
27,000 sec.
avail.
C/T = 60 sec
C/O= 60 min
OEE = 70%
27,000 sec.
avail.
C/T = 62 sec
C/O= 0 min
OEE = 85%
27,000 sec.
avail.
5 days 3 days 3 days 5 days 6 days 4 days
15 sec 45 sec 45 sec 20 sec 60 sec 62 sec
46 days
247 sec
Daily Ship
Schedule
20 days
Daily
1200 pcs/day
7.5 hours/shift
2 Shifts/day
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 9/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 8
Value Stream Mapping - Opportunities
20 days
Cut Weld #1 Weld #2 Deflash Paint Assembly
I I I I I
Production
Lead Time
Processing
Time
Supplier
Production
Control
I
Shipping
2x/mo
Daily
Customer Orders
Daily Priorities
Orders 60
days out
Shop
Orders
I6000 6000 7200 4800
To Weld Area
Supervisor
C/T = 15 sec
C/O= 15-60 min
OEE = 85%
27,600 sec.
avail.
C/T = 45 sec
C/O= 15min
OEE = 65%
27,000 sec.
avail.
C/T = 45 sec
C/O= 15 min
OEE = 65%
27,000 sec.
avail.
C/T = 20 sec
C/O= 0 min
OEE = 80%
27,000 sec.
avail.
C/T = 60 sec
C/O= 60 min
OEE = 70%
27,000 sec.
avail.
C/T = 62 sec
C/O= 0 min
OEE = 85%
27,000 sec.
avail.
5 days 3 days 3 days 5 days 6 days 4 days
15 sec 45 sec 45 sec 20 sec 60 sec 62 sec
46 days
247 sec
Daily Ship
Schedule
20 days
1200 pcs/day
7.5 hours/shift
2 Shifts/day
3600 3600
More frequent
deliveries
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 10/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training
The Concept and Use of Target Time
Target Time is the time within which you should produce one part or
product, based on customer demand (consumption)
Target Time defines the rate which material and product flow throughthe value stream
To run faster than Target Time anywhere in the value stream isoverproduction, resulting in excess inventory
To run slower than Target Time creates the need for acceleratedproduction, overtime, and expedited shipments
Target
Time Available secs / day
Customer Requirement=
Total Available Production Time
Total Production Requirement Customer
Requirement=
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 11/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 10
Value Stream Mapping – Future State
Cut Paint Assembly
Production
Lead Time
Processing
Time
Supplier
Production
Control
Shipping
Daily
Customer Daily Order Orders 60
days out
C/T = 15 sec
C/O < 15min
OEE = 85%
EPE = 1 Shift
C/T = 45 sec
C/O= 0 min
OEE = 85%
27,000 sec.
avail.
C/T = 45 sec
C/O<30 min
OEE = 85%
27,000 sec.
avail.
C/T = 45 sec
C/O= 0 min
OEE = 85%
27,000 sec.
avail.10 days
150 sec
Weld + Deflash
2 days 2 days 2 days2 days
15 sec 45 sec 45 sec 45 sec
2 days
Daily Order
OXOX
changeover
changeover changeover
OEE
Daily
1200 pcs/day
2 Shifts/day
7.5 hrs/shift
Target Time = 45 sec
OEE
QPS QPS
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 12/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 11
Transition Tools/Elements
Tools/Elements
• ISPC
• Visual Factory
• Error Proofing
• Quality
Process
System
• Quick
Changeover
• Six Sigma
• FTPM
• SMF
• IM
• Lean Process
Design
Identify and implement the tools/elements that
will take you from mass to lean
Future StateCurrent State
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 13/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 12
Describe how 6-Sigma is utilized to deliver
Ford Motor Company’s Business Plan (Closingthe gap between Current and Future State)
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 14/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 13
6-Sigma Deployment History and Integration Strategy
6-Sigma was introduced in Ford Motor Company in 1999. Originaldeployment was driven with requirements for the number of Black Beltsand generic project savings targets.
The strategy has since evolved to integrating the use of 6-Sigmamethodologies into the means in which business is conducted. This isachieved by:
Reviewing Business Plans within each organization, prioritizing gapsin performance to objectives, and allocating 6-Sigma resources toclose the gaps.
Integration of Failure Mode Prevention (DCOV) and Defect Reduction(DMAIC) methodologies into core business processes (i.e. the Quality
Operating System through the Ford Automotive Procedures). Defining people development (Green Belt, Black Belt, Master Black
Belt, Sensei, Project Champion) required to support the Business Plan
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 15/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 14
Major Steps for Linking Projects to Business Plans
Review Business Plan Objectives
Obtain Current Performance Results
Conduct Gap Analysis and Y=f(x)project identification
Allocate GB & BB Resources/
Projects to fill gaps
Measure progress with business
plan reviews
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 16/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 15
6-Sigma Business Plan Integration Process
Renewed Focus on Business Plan
Critical Ys using 6-Sigma Resources
Step 2:
Business Plan
Reviews
Step 1:
Objective
Setting
Step 3:
Tracking and
Reporting
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 17/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 16
Step 1: Objective Setting
• Y=f(x) helps to align Consumer Business Group (CBG)
goals and necessary process improvement areas for
annual operating business plans
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 18/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 17
DEVELOP
EXCITING
PRODUCTS
ACHIEVE
COMPETITIVE COST
AND REVENUE
BUILD
RELATIONSHIPS
• TGW
• CUSTOMER
SATISFACTION
• SALES
SATISFACTION
• SERVICE
SATISFACTION
• OTHERS
• TGR
• DELIGHTS/
SURPRISES
• OTHERS
• HARD SAVINGS
• COST AVOIDANCE
• SALES VOLUMES
• HARBOUR HOURS
• LAUNCH METRICS
• OTHERS
• EMPLOYEE
SATISFACTION
SURVEY
• DEALERSHIP
SATISFACTION
• SUPPLIER
SATISFACTION
• OTHERS
DesiredOutcomes
Y=f(x)
CBGMetrics
Metrics are measured against a benchmark, the 2004 goals,
the year-to-date actual performance, and the quarterly trend.
Step 1: Objective Setting, continued
QUALITY
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 19/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 18
Step 2: Business Plan Reviews
Corporate Balanced Scorecard
Functional Area
Balanced Scorecard
• Current results (G, Y, R)
Expanded Functional
Area Balanced
Scorecard• Ensure linkage
• Conduct gap analysis
• Prioritize opportunities
• Develop project queue
• Confirm project queue
• Align resources
OutcomeBB/GB Project
Core Objectives
U ili i 6 Si D li h B i Pl
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 20/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 19
Step 2: Business Plan Reviews, continuedStep 2. Business Plan Reviews
MBBs conduct Operational Business Plan Reviews for Critical Ys in order for CBG leaders to agree on how to allocate 6-Sigma projects and
resources in conjunction with the Deployment Directors’ goal to address
key Critical Ys and fill identified gap(s).
Step 2 maps directly to the Corporate, functional area, and expanded
functional area balanced scorecards. Use the process described below to
conduct and complete the business plan review:
Ensure there is direct linkage between highest level
scorecard and the expanded functional scorecard
Determine the status (R, Y, G) of current results
Conduct gap analysis on the previous year results and
following year targets
Prioritize opportunities (Big Ys)Develop potential 6-Sigma project queue
(MBB/Mega/BB/GB projects)
Gain consensus from management on project queue
and resource allocation
Align 6-Sigma resources to specific projects
Utili i 6 Si t D li th B i Pl
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 21/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 20
Step 3: Tracking and Reporting
• Regularly reassess 6-Sigma project deliverables againstthe status of closing key business plan gaps at the
appropriate operational business plan review meeting,
and Performance Cell reviews
• Ensure CBGs provide necessary resources required toachieve established goals
Utili i 6 Si t D li th B i Pl
8/22/2019 Bb Wk1 140 Utilizing 6-Sigma to Deliver the Business Plan
http://slidepdf.com/reader/full/bb-wk1-140-utilizing-6-sigma-to-deliver-the-business-plan 22/22
Utilizing 6-Sigma to Deliver the Business Plan
Black Belt Training Slide: 21
Step 3: Objectives Review
The Participant should be able to:
• Communicate the concept and usage of Value Stream
Maps
• Describe how 6-Sigma is utilized to deliver Ford Motor
Company’s Business Plan (Closing the gap betweenCurrent and Future State)