1. Six Sigma Part 1 Implementation & Management Sample

2. Building a 6 Organization (4 of 14) Why Six Sigma? Six Sigma helps the organization improve customer value and efficiency. Just a few of the major companies that have used Six Sigma are: Motorola, GE, Allied Signal Six Sigma focuses on: customer requirements, defect prevention, cycle time reduction, cost savings, customers, shareholders, and employees. Page 2www.readysetpresent.com 3. Building a 6 Organization (7 of 14) Six Sigma vs. Three Sigma There is a direct correspondence between the quality levels and the sigma levels of performance. Companies operating at 3 or 4 sigma usually spend 25- 40% of their revenues fixing problems. Companies operating at 6 sigma usually spend less than 5% of revenues fixing problems. Page 3www.readysetpresent.com 4. Building a 6 Organization (10 of 14) Implementing Six Sigma Leadership Communicates a vision for Six Sigma success. Infrastructure Senior leaders direct the development and training of an infrastructure. Communication / Awareness Steps are taken to soft-wire the organization and cultivate a change-capable environment. Page 4www.readysetpresent.com 5. Building a 6 Organization (11 of 14) Project Selection Six Sigma projects are proposed for improving business processes. Project Deployment Six Sigma projects are conducted by project teams led by Black Belts. Projects may also be led by Green Belts with the technical assistance of Black Belts. Page 5www.readysetpresent.com 6. Building a 6 Organization (12 of 14) Timetable It takes approximately 2 years to deploy Six Sigma within an organization: Identify leader Discover knowledge Train Black Belts Establish project validation criteria Train Green Belts Prepare road map of next steps Page 6www.readysetpresent.com 7. Building a 6 Organization (14 of 14) Infrastructure There needs to be 1 master black belt (MBB) for every 1,000 employees. For every MBB in your organization, you would typically need 10 BBs. A Black Belt (BB) will typically complete 5-7 projects per year. This structure is intended for organizations with 1000+ employees, but can be easily adapted for companies with 400+ employees. Page 7www.readysetpresent.com 8. Enhance Customer Value Page 8www.readysetpresent.com 9. Enhance Customer Value (1 of 18) Recognizing Opportunity A core principle of Six Sigma is the recognition of customer value. Value is what the customer is willing to pay for. The remainder of our activities is waste. The fulfillment of customer needs is the lifeblood of the organization. Page 9www.readysetpresent.com 10. Enhance Customer Value (3 of 18) Traditional Structure Short-term focus Bottom line results Customers are a pain Sellers Market Error Detection Product Driven Crisis Management Customer Driven Long-term focus Customer satisfaction Customers are important Buyers Market Error Prevention Customer Driven Process Improvement Page 10www.readysetpresent.com 11. Page 11www.readysetpresent.com 12. Let the Data Drive You (1 of 20) Data Driven Management Management decisions must be based on objective data. Six Sigma projects provide a means of analyzing process data to achieve process improvements. These process improvements are initiated so that the organization can achieve its priorities. Page 12www.readysetpresent.com 13. Let the Data Drive You (2 of 20) Attributes of Good Data The choice of what to measure is crucial to the success of the organization. Improperly chosen metrics can lead people away from the organizations goals. Once chosen, the metrics must be communicated to the members of the organization. Page 13www.readysetpresent.com 14. Let the Data Drive You (5 of 20) Dashboard Metrics Dashboard metrics are measurements of the results delivered by complex processes and systems. These measurements are effects of the processes. In Six Sigma work, effects are Ys, and root causes are Xs. Page 14www.readysetpresent.com 15. Let the Data Drive You (7 of 20) Balanced Scorecards Balanced scorecards display performance metrics in four areas that correspond to the major stakeholders: Customer Internal processes Innovation and learning Financial www.readysetpresent.com Page 15 16. Let the Data Drive You (10 of 20) Internal Process Perspective on the Balanced Scorecard Which internal processes are critical to meet customer and shareholder goals? Internal metrics must be chosen to support the leaderships customer strategy. SIPOC can be used to aid in the selection of internal metrics. Page 16www.readysetpresent.com 17. Let the Data Drive You (12 of 20) Innovation and Learning Perspective on the Balanced Scorecard. Can we continue to improve and create value? Building shareholder value is dependent on the companys ability to innovate, improve, and learn. Its important to keep in mind that what worked yesterday may fail tomorrow. Page 17www.readysetpresent.com 18. Let the Data Drive You (14 of 20) Financial Perspective on the Balanced Scorecard Obsession with financial metrics undoes many improvement initiatives. When senior leaders look only at results, they miss the fact that results come from a chain of interacting processes that produce value for customers. Page 18www.readysetpresent.com 19. Let the Data Drive You (17 of 20) Cost of Poor Quality The issue of quality costs has been around since the 1950s. Cost of quality includes any cost that would not be expended if quality were perfect. Page 19www.readysetpresent.com 20. Which Projects to Select? Page 20www.readysetpresent.com 21. Which Projects to Select? (1 of 11) Maximizing Resources According to Jack Welch, the CEO of General Electric, the best Six Sigma projects begin by answering the questions: How can we make the customer more competitive? What is critical to the customers success? Selecting which projects to focus on maximizes resources. Page 21www.readysetpresent.com 22. Which Projects to Select? (7 of 11) Tracking Six Sigma Projects Tracking results from Six Sigma projects is important for several reasons: Evaluating the Six Sigma project selection system Determining ROI Setting budgets Appraising performance Setting goals and targets Identifying areas where more or less Six Sigma is needed Page 22www.readysetpresent.com 23. www.readysetpresent.comPage 23 Download Six Sigma PowerPoint presentation at ReadySetPresent.com Slides include: 14 slides on building a Six Sigma organization ~ 18 slides on enhancing customer value ~ 20 slides on data-driven management ~ 11 slides on which projects to select ~ 3 slides introducing the DMAIC and DMADV models ~ 23 slides on "D" (Define) ~ 27 slides on "M" (Measure) ~ 7 slides on process behavior charts ~ 5 slides on measurement system info ~ 34 slides on "A" (Analyze) ~ 35 slides on "I" or "D" (Improve/Design) ~ 17 slides on "C" or "V" (Control/Verify) ~ action steps and much more. 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