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Resources and Aspects of Six- Sigma
Resources and Aspects of Six-Sigma
Programme• ENBIS and Pro-ENBIS• ISRU’s support for Six-Sigma• The Words of Soren Bisgaard• The Words of Ron Kennet• The Main Speakers• Irena Ograjensek
- Opening the Toolbox!• Tony Greenfield
- Statistical Methods in Business and Industry
Dave Stewardson - ISRU
Soren Bisgaard - University of Amsterdam
Ron Kennet - KPA Israel
ENBIS
European Network for Business and Industrial Statistics
www.enbis.org
ENBIS
Big supporters of Six-Sigma throughout Europe
- To promote the widespread use of applied statistical methods in European business and industry, - Membership - statistical practitioners from business and industry, - Multidisciplinary problem solving - To facilitate the rapid transfer of statistical knowhow- Web-based
Vision
- Design of experiments- Reliability and safety- Data mining / warehousing- General statistical modelling
Working groups- Process modelling and
control- Quality improvement- Statistical consultancy
- bENBIS (Belgium)- nENBIS (Netherlands)- iENBIS (Israel)
Local networks
Organisation
- No membership fee (for the time being)
- 565 members (September, 2002)
Organisation
Membership benefits
ENBIS offers :
-Network facilities-Conferences-Courses-Thematic network Pro-ENBIS
www.enbis.org
Aims include:
Start a European Training NetworkFound European Measurement System Audit Draft new European Journal - web-basedInorgorate a European Business-to-Business Mentoring SchemePublish a ‘State-of-the-Art’ report on the use of Industrial Statistics in EuropeAccess further funding to promote ENBIS
Pro-ENBIS
Training Network now has more than 50 participants
Push to help implement Six-Sigma throughout Europe - this is a massive resource.
Including the non-EC states!
Pro-ENBIS
Planned ‘Workshops’ for 2003:
Sardinia alongside DEINDE conference on Designed experiments - FebruaryMaastrict (Netherlands) alongside ESREL reliability conference - June
Currently planning UK based Workshop
Pro-ENBIS
Siemens Electric Heating ASSiemens Electric Heating ASBratsbergvegan 5
N-7493TRONDHEIM
Norway
21/6/2002Tel No +47 73 95 90 00
Pro-ENBIS industrial visits
Jon Tyssedal, [email protected] of Statistics, NTNUExpert in Statistics Maria Fernanda Ramalhoto, [email protected] of Statistics,Instituto Superior Tecnico, LisbonExpert in Reliability and Quality Improvement
Ron Kenett, [email protected] Management Consultant, CEO KPA Ltd.Expert in Industrial Statistics and Quality Management
ENBIS team
Six-Sigma and ReliabilityFor Nestle
Dave Stewardson - ISRU with Froydis Berke - Matforsk NorwaySoren Bisgaard - USA Poul Thyregod - DenmarkBo Bergman - Sweden
ISRU’s Support for Six-Sigma
Hands-on Support for Champions Black-Belts and Master Blackbelts
Full Six-Sigma programme from October - Black Belt - Green Belt - Yellow Belt - training and support
This is VERY market / customer driven
Plus - access to on-line support
Keys to Success Mark II
1. Need to overcome demands on peoples time
2. Need to overcome reluctance to try new methods - fear of failure
3. Must be allowed to discover that the key methods are self correcting!
In other words - you can’t really fail at all
ISRU - On-Line Modules
ISRU’s Courses
ISRU have 3 certified courses available on Blackboard:
• DoE (Design of Experiments)• MQT(Modern Quality Tools)• SPC (Statistical Process Control)
Soren BisgaardLeading Industrial Statistician
Extract from Presentation
The “Success” of Change Programs?
“Performance improvement efforts … have as much impact on
operational and financial results as a ceremonial rain dance has on the weather”
Schaffer and Thomson,Harvard Business Review (1992)
Change Management:Two Alternative Approaches
Activity Based Programs
Result Oriented Programs
ChangeManagement
Reference: Schaffer and Thomson, HBR, Jan-Feb. 1992
Activity Centered Programs• Activity Centered Programs: The pursuit of
activities that sound good, but contribute little to the bottom line
• Assumption: If we carry out enough of the “right” activities, performance improvements will follow– This many people have been trained– This many companies have been certified
• Bias Towards Orthodoxy: Weak or no empirical evidence to assess the relationship between efforts and results
An Alternative: Result-Driven Improvement Programs
• Result-Driven Programs: Focus on achieving specific, measurable, operational improvements within a few months
• Examples of specific measurable goals:– Increase yield– Reduce delivery time– Increase inventory turns– Improved customer satisfaction– Reduce product development time
Result Oriented Programs:
• Project based• Experimental • Guided by empirical evidence• Measurable results• Easier to assess cause and effect• Cascading strategy
Why Transformation Efforts Fail!
• John Kotter, Professor, Harvard Business School
• Leading scholar on Change Management • Lists 8 common errors in managing change,
two of which are: • Not establishing a sense of urgency• Not systematically planning for and
creating short term wins
Six Sigma Demystified*
– Alignment of customers, strategy, process and people
– Significant measurable business results– Large scale deployment of advanced
quality and statistical tools– Data based, quantitative
*Adapted from Zinkgraf (1999), Sigma Breakthrough Technologies Inc., Austin, TX.
Keys to Success*
• Set clear expectations for results
• Measure the progress (metrics)• Manage for results
*Adapted from Zinkgraf (1999), Sigma Breakthrough Technologies Inc., Austin, TX.
Six Sigma• The precise definition of Six Sigma is
not important; the content of the program is
• A disciplined quantitative approach for improvement of defined metrics
• Can be applied to all business processes, manufacturing, finance and services
Focus of Six Sigma*• Accelerating fast breakthrough
performance • Significant financial results in 4-8 months• Ensuring Six Sigma is an extension of the
Corporate culture, not the program of the month
• Results first, then culture change!
*Adapted from Zinkgraf (1999), Sigma Breakthrough Technologies Inc., Austin, TX.
Six Sigma: Reasons for Success• The Success at Motorola, GE and
AlliedSignal has been attributed to:– Strong leadership (Jack Welch, Larry
Bossidy etc. personally involved)– Initial focus on operations – Aggressive project selection (potential
savings in cost of poor quality > $50,000/year)
– Training the right people
Ron KennetRising Industrial Statistician
Extract from Presentation
“the most important initiative GE has ever undertaken”.
Jack WelchChief Executive OfficerGeneral Electric
• In 1995 mandated each GE employee to work towards achieving 6 sigma• The average process at GE was 3 sigma in 1995• In 1997 the average reached 3.5 sigma • GE’s goal is to reach 6 sigma by 2001• Investments in 6 sigma training and projects reached 45MUS$ in 1998, profits increased by 1.2BUS$
General ElectricGeneral Electric
“At Motorola we use statistical methods daily throughout all of our disciplines to synthesize an abundance of data to derive concrete actions….How has the use of statistical methods within Motorola Six Sigma initiative, across disciplines, contributed to our growth? Over the past decade we have reduced in-process defects by over 300 fold, which has resulted in a cumulative manufacturing cost savings of over 11 billion dollars”*.
Robert W. GalvinChairman of the Executive CommitteeMotorola, Inc.
MOTOROLMOTOROLAA
*From the forward to MODERN INDUSTRIAL STATISTICS by Kenett and Zacks, Duxbury, 1998*From the forward to MODERN INDUSTRIAL STATISTICS by Kenett and Zacks, Duxbury, 1998
KnowledgeKnowledgeManagementManagement
The Six Sigma InitiativeThe Six Sigma Initiativeintegrates these effortsintegrates these efforts
How is Six Sigma deployed?Six Sigma is deployed via project teams launched and supported by Black Belts. Projects can be of different size and duration. We define projects as—a structured and systematic approach to achieving Six Sigma levels of improvement. Depending on the scope of the project, they can be defined as:
Business Process Projects – large-scale improvement of a business process that extends across an organization. For example, order taking.
Six Sigma Quality Improvement Project – aimed at solving chronic problems crossing multiple functions of an organization.
Work Team Project – a project within one department.
Six Sigma project roadmapSix Sigma project roadmap
DEFINE
MEASURE
ANALYZE
IMPROVE
CONTROL
Black Belt training programBlack Belt training program
• 6 sigma principles• Quality Improvement• Quality by Design• Quality Control• Teamwork• Effective presentations• QFD/VOC • Statistical thinking• Process mapping• Barriers to breakthroughs• JMP, MINITAB…..
• Gage R&R• SPC• SPC Strategy• Risk Management• FMEA• Statistical Inference• Design Of Experiments• DOE Strategy• Bootstrapping• Robust Designs• System Thinking
Barrier #1: Engineers and managers are not interested in mathematical statisticsBarrier #2: Statisticians have problems communicating with managers and engineersBarrier #3: Non-statisticians experience “statistical anxiety” which has to be minimized before learning can take placeBarrier # 4: Statistical methods need to be matched to management style and organizational culture
Barriers to implementation
Technical Technical SkillsSkills
Soft SkillsSoft Skills
StatisticiansStatisticiansMaster Master
Black BeltsBlack BeltsBlack BeltsBlack Belts
Quality Improvement Quality Improvement FacilitatorsFacilitators
BBBBMBB
Leadership Group
Processes, internal and external customers
Team 1 Team 2 Team 3
BBBB BBBB BBBB
MBB
The The 6 Sigma6 Sigma Project Structure Project Structure
KPAISRUENBIS
The right way!• Plan for “quick wins”
– Find good initial projects - fast wins• Establish resource structure
– Make sure you know where it is• Publicise success
– Often and continually - blow that trumpet• Embed the skills
– Everyone reports success
Pro-Enbis
All joint authors - presenters - are members of:
Pro-Enbis and ENBIS.
This presentation is supported by Pro-Enbis a Thematic Network funded under the ‘Growth’ programme of the European Commission’s 5th Framework research programme - contract number G6RT-CT-2001-05059
