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Improving Your Business ResultsSix SigmaQualtec

Six Sigma Qualtec – All Rights Reserved

Deployment ApproachFrom

Initialization to Self Sufficiency



• Six Sigma Described• Quantification and Categorization of Deployment Results• Fundamentals of Initialization and Infrastructure

Development• Process Management and Six Sigma• The Path to Self Sufficiency

Agenda Overview



• It is the philosophy of breakthrough level improvements, that every process can and should be repeatedly evaluated and significantly improved– In terms of time required, resources used, quality performance, costs and other aspects relevant to the process.

– All leading to increased customer satisfaction, market share, revenue, profits, and ultimately shareholder value.

Six Sigma Described



• It is an enterprise wide strategy that effectively develops a capability and a desire within individuals to:– To effectively manage process activities and performance

– To solve business and quality problems– To improve decision-making– To improve the overall performance of the enterprise

Six Sigma Described



ManagementSystem Methodology Metrics and

GoalsTools+ + +

– A group of interactive and dependent activities which operate synchronously and in control to repeatedly achieve an expected result with little or no Management intervention required

System

– An enterprise wide strategy that recognizes problematic areas of the business, defines improvement efforts and projects, determines and implements data driven breakthrough level solutions…..in a predictable and repeatable manner to improve business results

Six Sigma System

Six Sigma Described

Six Sigma is the way you run your business. It is not just about quality, it is a business & process management system, and one of the many outputs is improved quality.



RESULTS FROM SIX SIGMA IMPLEMENTATIONS

Inferior

Below Average

Above Average

Excellent

TOTA

L Q

UA

NTI

TY O

FIM

PLEM

ENTA

TIO

NS

How Six Sigma is Implemented and Applied Will Determine the Results

Categorization of Results



Quantification of ResultsFACTOR POOR BELOW AVERAGE ABOVE AVERAGE EXCELLENT

Average Level of Improvement per Project

Unknown or less than 30%

May be known and 30% to 40%

Known and 40 % to 60%

Known and greater than 60%

Average Financial Results per Project

Generally not quantifiable

Not well defined and less than an average of $40K per project

Defined, tracked and average around $100K per project

Defined, Tracked and average greater than $150K per project

Average Quantity of Projects per Black Belt/Year

1 to 2 2 to 3 3 to 4 4 or more

Organizational Approach/Culture Change

Little or no impact on the behavior of the ogranization

More frequent use of data, but in isolated cases

Trend or movement towards the use of analytical methods and data oriented decisions

Six Sigma becomes the "Way we think and work"

Multiple Factors Determine the Results Obtained …….. Y=f(X)



Process Management

Initialization

Factors that Influence Results

X1 = Senior Executive engagement and commitment

X2 = Up front planning

X3 = Infrastructure Development

X4 = Proactive Champions that see the power of Six Sigma

X5 = Full-time Black Belts from “Among the Best”

X6 = Process Management through Green and Yellow Belts

X7 = Black Belts Project selection that makes an impact on the bottom line of the business

X8 = Financial evaluation system

X9 = Metrics and goals linked to corporate strategy for progress tracking

X10 = Project tracking system to measure progress

Y(results) = f(X)



Initialization

– An enterprise wide effort that recognizes problematic areas of the business, defines improvement efforts and projects, determines and implements data driven breakthrough level solutions…..in a predictable and repeatable manner to improve business results

Six Sigma System

– The process of preparing a company for the development of the necessary infrastructure required to achieve excellent results from a Six Sigma implementation and to achieve self-sufficiency

Initialization

– The various elements (activities) of a system that must exist to allow the predictable and continuous operation of that system to achieve expected results

Infrastructure



Initialization - Overall Deployment Planning1

65

432

7 8

InitialLaunch Planning

Train Executiveand Top Management Team

Define the Six Sigma System to be Implemented

BeginImplementation& InfrastructureDevelopment

FinalizeLaunch Planning

Core Team Training

Select Core Team

High Level Implementation RoadmapHigh Level Implementation Roadmap

Release Six Sigma

Handbook and

Guidelines



Select BB’s andProjects forWave 1 BB’s

Begin Green Belt and

Yellow Belt Training

Implement Process

Management

1211109

13

TrainChampions

High Level Implementation RoadmapHigh Level Implementation Roadmap

•Consecutive BB, GB, YB Waves•Master Black Belt Development•Project Tracking & Reporting

14

Apply Infrastructureand Support

Systems

Initialization - Overall Deployment Planning



Operation/Group/Company Name Address (City, State)

Approximate Annual Revenue

Total Organization

Population

OrganizationPopulation (Exempt) Revenue Per

Employee2% NPBIT

Target2% NPBIT

BB1% of Total

BB6% of

Exempt BB

TargetBB

Propulsion Systems 422 Gallimore Dairy Road, Los Angeles, CA

$30,000 74 62 $405 $600 1 1 4 2

Propulsion Systems 2500 Ta lbot Drive, Auburn Hills, WA

$40,000 33 25 $1,212 $800 1 0 2 2

Propulsion Systems 650 Chesterfie ld Road, Sacrmento, CA

$80,000 427 84 $187 $1,600 3 4 5 4

Propulsion Systems Guadalajara, Mexico

$60,000 730 47 $82 $1,200 2 7 3 3

Monclova, Mexico $90,000 253 49 $356 $1,800 3 3 3SUB TOTAL $300,000 1517 267 $198 $6,000 10 15 16 11

Command Console Systems

200 Piedmont Circle , Dallas, Tx

$75,000 443 76 $169 $1,500 3 4 5 4


9138 Randolph Rd NE, Baltimore, MD

$60,000 387 42 $155 $1,200 2 4 3 3


Singapore $90,000 228 18 $395 $1,800 3 2 1 2

SUB TOTAL $225,000 1058 136 $213 $4,500 8 11 8 9Integrators 2223 Dove Street,

Detroit, MI$55,000 228 38 $241 $1,100 2 2 2 2

SUB TOTAL $55,000 228 38 $241 $1,100 2 2 2 2Pnuematics and Servos 629 Green Valley

Rd, Minneapolis, MN

$10,000 32 29 $313 $200 0 0 2 1

Pnuematics and Servos 650 Chesterfie ld Rd., Sacramento, CA

$90,000 328 29 $274 $1,800 3 3 2 3

Pnuematics and Servos 215 Drummond St., Dallas, TX

$50,000 159 27 $314 $1,000 2 2 2 2

SUB TOTAL $150,000 519 85 $289 $3,000 5 5 5 6GRAND TOTALS $730,000 3322 526 $220 $14,600 24 33 32 28

Determining the Scope of the Deployment

Initialization - Initial Launch Planning



Launch Planning Phase

Key Activities• Executive 1:1 Interviews• Key Implementation Leaders

Selected• Executive Management

Training• Define Year 1 Implementation

Plan• Core Team Selected and

Trained• Rev 1 Six Sigma System

Definition Released• Begin Initialization• Establish Deployment Strategy• Rev 1 Six Sigma Handbook• Develop Communications Plan• Establish Management

Commitment Letter• First Employee

Announcements letter• Budgeting• Establish Performance

Expectations/Goals• Initiate Compensation Plan• Identify Initial Champions• Establish 3 Year Plan

SCHEDULE & TIMING

• 2 to 3 Months

Implementation Phase

Key Activities• Communications Plan

Executed• Train Champions• Identify First Projects• Train First Waves of BB’s• On-Site Support• Infrastructure Completed• Launch Initial GB/YB

Training• Six Sigma Metrics

Established• Measurement & Tracking

Systems Established• Train Functional Mngmnt• BB Certification Process

Established• Champion RefresherTrng• Train Initial MBB’s• Begin All Employee

Awareness Training• Six Sigma Handbook Rel 2+• Quarterly Exec Reviews• First Recognition & Rewards

Event• Pilot Customer Engagement

ProcessSCHEDULE & TIMING

• 9 to 10 Months

InstitutionalizingPhase

Key Activities• Full Scale GB/YB

Training• Engage Suppliers• Develop Internal Training

Capability• Complete BB & MBB

Training Waves to Full Quantity

• Second Annual Rewards & Recognition Event

• Spot Champion Revitalization Training

• System Refinement & Improvement

• Quarterly Exec Reviews• Full Customer

Engagement• Launch Design for Six

Sigma Training• BB Re-Integration

Planning

SCHEDULE & TIMING

• 12 Months

SustainingPhase

Key Activities• Continue GB/YB Training• Complete Design for Six

Sigma Training• Migrate BB’s & MBB’s

Back into Functional Roles

• Continue Supplier Deployment

• System Refinement & Improvement

• Progress Reviews• Annual Rewards &

Recognition Event• Quality Performance

Improvement

•

SCHEDULE & TIMING

• 12 Months

Year 1 Year 2 Year 3

Initialization - Initial Launch Planning



Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4

Propulsion Systems Manufacturing

Pneumatics and Servos Manufacturing


Integrators

Sales And Marketing

Customers and Suppliers

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4

CY02 CY03 CY04

Design/Development Engineering

Administrative Functions

Initialization - Final Launch Planning

Plan the Deployment Sequence



WaveStep Process/Event Description

Language Customer Participation SSQI Participation

Prerequisites Deliverables

0 1 Launch Planning 1 English James Smalley Bill Haas Organization Structure and population data

Approximate number of Champions, Black Belts and Master Black Belts planned by area for the deployment. Identify core team in terms of roles, objectives and time commitments. Establish Rev 1.0 of Deployment time table

E1 2 Executive Interviews English Executive Management Team

Don Redinius Read Six Sigma System Definition document

Develop Executive level understanding, through executive one-on-ones, of Six Sigma Management System, the breakthrough process, the deployment process, review management system definition and address questions and concerns. Provide prerequisite material

CT1 3 Core Team Training 1 English Six Sigma Leader, Core Team (principle support individuals from Finance, Human Resources, Communications, IT, Key Stakeholder Representatives and Finance Representatives

Stan Whitman Read Six Sigma Management System Definition document and The Nature of Six Sigma Management

Develop mid level understanding of Six Sigma System and the breakthrough process, address questions and concerns, define requirements for successful deployment, planning and infrastructure requirements, define roles and responsibilities of core team mem

CT1 4 Initialization Workshops # 1A

English Core Team Kevin Benson Core Team training Workshops to customize infrastructure templates into Takata operating guidelines and policies (Six Sigma Handbook).

E1 5 Executive Training English Executive Management Team and Six Sigma LeaderClass Size: TBD

Don Redinius Read The Nature of Six Sigma Management.

Prepare leadership team, set corporate level business and financial goals, establish high level deployment guidelines and establish leadership requirements for the success of Six Sigma.

E1 6 System Definition release

English Steve CromwellWilkes RobartsExecutive Team

N/A Review and appropriate modifications

Finalization and release 1 of Six Sigma System Definition document signed by total Executive Team

Duration Planned Dates Location

1 day 17-Apr-02 Frankfurt

3 days TBD FrankfurtLondonMunichParis

2 Days 5-7-025-8-02

Frankfut

2 Days 5-9-025-10-02

London

2 days 6-4-026-5-02

Frankfurt

N/A 21-Jun-02 N/A

1 Year Detail Planning for All Needed Events

Initialization - Final Launch Planning



Engage Process

Initialization - Developing Infrastructure

Core Team

Workshop 1

Infrastructure Development Process Outputs

ConsistentSix Sigma

Deployment

System Knowledge &

Expertise

Self Integrating Six Sigma System

Defined and Auditable System

Web Based Six Sigma Handbook

Hard Copy Six Sigma Handbook

Core Team

Workshop “N

”

Experienced Facilitation

Client’s Uniqueness

Templates for Handbook

Best Practices

Six Sigma System

Requirements

Inputs

Core Team Training

Infrastructure is Developed by the Companies Support Organizations and Representatives From Each Major Organization



Deployment and Launch Planning Human Resource Guidelines Finance Guidelines Information Technology Requirements Communications Project Guidelines Project Tracking and Reporting Goal and Objective Establishment

Initialization - Infrastructure Elements

Infrastructure Elements Bring Clarity and Certainty to an Organization Implementing Six Sigma



HR Guidelines• Competency Models and Selection

• Position/Assignment Descriptions

• Reporting Relationships• Graduation and Certification Criteria• Career Planning/Development• Titles, Compensation & Retention• Rewards & Recognition• Employee Status Tracking Requirements

Deployment & Launch Planning• Six Sigma Management System Definition

• 3 Year Long term Plan

• Goals and Expectations

• Key Participant Selection

• Overall Deployment Plan

• Detailed Near Term Actions

• Initialization Planning

•Training Schedules and Logistics

Communications Plan• First All Employee Communications Letter

• Overall Communications Strategy

• Tactical Plan (Who, What and When)

• Message Content as a Function of Time

• Integration with Other Initiatives

• Frequency of Communication

• Method/Mediums of Communication

• Definition of Expectations and Effectiveness

Project Guidelines• Recognition and Definition Criteria

• Project Type Categorization

• Problem Statement and Objectives Criteria

• Project Valuation Targets

• Project Approval Process

• Project Review and Reporting Criteria

• Project Completion Requirements

• Moving into Realization & Closing Phases

Initialization - Infrastructure Deliverables



Project Tracking and Reporting• Customization for Financial System

• Customization for Organizational Structure

• Software User Manuals and Training

• Email System Integration

• Report Generation

• Input Reporting Frequency

Information Technology Support• Intranet Development

• Final Report Database

• Notebook Configuration and Support

• Software Installation Templates

• Project Tracking System Development

• Backup Procedures

Finance Guidelines• Finance Rep Identification and Training

• Project Valuation

• Project Forecasting Requirements

• Methods of Evaluation

• Project Completion

•Reporting Frequencies

Goal Establishment• Quantity of MBB’s, BB’s, GB’s & YB’s

• Rate of Deployment/Training Goals

• Quantity of Projects/BB/Year

• Financial Expectations per Project

• Yearly Financial Contribution

• Metrics Goals

• Organizational Goals

Initialization - Infrastructure Deliverables



Process Management• Process Management is a structured approach to aligning and

optimizing how business processes work together to repeatedly and consistently deliver results/value to a customer

• General steps toward process management–Identify core processes, generally 5 to 10 and prioritize for

assessment–Designate “Process Owners”–Educate the organization in process management principles

and techniques–Assess current end to end process performance and set

operating targets–Use process improvement methods, IE Six Sigma, to improve

performance to targets



Process Management• Education content for Process Management

• Voice of the Customer• Organizational and team effectiveness• Flow charting• Workflow and data modeling (X’s and Y’s)• Capability analysis• Measurement systems analysis• Change analysis, solution implementation and change

management• Process monitoring and control



Level 1

Process A Process B Process C Process D Process E

Mgr A Mgr B Mgr C Mgr D Mgr E

PCS SummaryManager 1 Manager 2

Senior Management

Owned

PCS Summary

Key Process MapEnabling Processes

Key Process MapCore Processes

3020100

0.3

0.2

0.1

0.0

Sample Number

Proportion

P Chart for Rate by Group

1

11

P=0.02491UCL=0.03969

LCL=0.01012

1 2 3

15105Subgroup 0

40

35

30

Sample Mean

Mean=34.43

UCL=38.14

LCL=30.72

76543210

Sample StDev

1

S=2.601

UCL=5.433

LCL=0

Xbar/S Chart for Cycle Time

Level 2

Level 3

Middle Management

Owned

Process Owner

and Worker Responsibilities

• Manage & supervise their operation• Track & monitor process and results indicators• Assure predictability and stability of the process• Identify potential improvements• Improve the process

•Process Owners Use Process Management to:

Process Management & Improvement



Q1 P1 P2 P3

P1

P2

P3Q1

Process Management & Improvement

252015105Subgroup 0

40

30

20

Sample Mean

X=30.10

3.0SL=41.33

-3.0SL=18.86

40

30

20

10

0

Sample Range

R=19.47

3.0SL=41.18

-3.0SL=0.000

Q1 Indicator Chart

50403020100

75

65

55

45

35

25

Sample Number

Sample Count

C=50.24

3.0SL=71.50

-3.0SL=28.98

P1 Indicator Chart

252015105Subgroup 0

250

150

50

Sample Mean

X=137.8

3.0SL=220.1

-3.0SL=55.41

300

200

100

0

Sample Range

R=142.8

3.0SL=301.9

-3.0SL=0.000

P2 Indicator Chart

3020100

0.6

0.5

0.4

0.3

0.2

0.1

0.0

Sample Number

Proportion

P=0.2478

3.0SL=0.4224

-3.0SL=0.07312

P3 Indicator Chart

Process Control

Incapable Process

newCycletim

50

40

30

20

10

5040302010

70

60

50

40

30

y

x

95% PI

95% CI

Regression

Others

Training

Specs

Equipment

Material

Workload

1 2 2 3 510 4.3 8.7 8.713.021.743.5

100.0 95.7 87.0 78.3 65.2 43.5

20

10

0

100

80

60

40

20

0

DefectCount

PercentCum %

Percent

Count

Pareto Chart for Error Ty

55453525155

USLLSL

PPM TotalPPM > USLPPM < LSL



PpkPPLPPUPp

CpmCpkCPLCPUCp

StDev (LT)StDev (ST)Sample NMeanLSLTargetUSL

305469.62273583.66 31885.96

310027.89276303.34 33724.55

304000.00248000.00 56000.00

0.200.620.200.41

*0.200.610.200.40

8.144058.25584

12530.097215.0000

*35.0000

Expected LT PerformanceExpected ST PerformanceObserved PerformanceOverall (LT) Capability

Potential (ST) Capability

Process DataSTLT

Measure

Analyze

Improve

Design of ExperimentAnd/Or

Solution Determination

Control#

Process Function

(Step)

Potential Failure Modes

(process defects)

Potential Failure Effects

(KPOVs)

SEV

Class

Potential Causes of

Failure (KPIVs)

OCC

Current Process Controls

DET

RPN

Recommend Actions

Responsible Person &

Target Date

21 Picking ItemsWrong

Merchandise Mis Delivery 8 Customer Error 1 None 10 80

22 8Purchasing

Transaction Error3 None 10 240

23 8Packing Order

Wrong2 None 10 160

24 8Shipping Manif es t

Wrong3 None 10 240

25 8 Wrong Item Picked 4 None 10 320

26Delay In Delivery

Truck Leaving Hub3 Wrong Item Picked 4 Caught at Loading 3 36

27Loading Items for

Customer

Damaged

MerchandiseRejected Delivery 9

Unable to raise

item to truck8

Hearing loose

items as loading8 576 Dolly 's/ Ramps Team Leader

28 9Items shif t during

loading4

Hearing damage

occur9 324 Use Pads Team Leader

29 9Items rub into each

other during 6 None 10 540 Use Straps Team Leader

30 9Items crush each

other3

Hearing damage

occur9 243

31 9Truck w alls catch

on item5

Hearing damage

occur9 405

Refurbish

TruckTeam Leader

32Wrong

MerchandiseMis Delivery 8

Pulled f rom w rong

loading dock2 Caught at Loading 6 96

Black Belt Project

Out of C

ontrol

Process

GB Project

With YB

Support



Project Assignment

Difficulty and Cost of Problems

Qua

ntity

of P

robl

ems

BB

Pro

ject

s

Too Hard -Are Usually

Management Caused

TooEasy

Solving“World Hunger,”“Boil the Ocean”Type Problems

Solving “Fruit on the Ground,”“Logic & Intuition”“Process Control” Type Problems Solving

“Process Optimization”“Complex Interaction”“Process Entitlement”Type Problems

GB

/YB

Pro

ject

s



Goal (Six Sigma System)– An enterprise wide strategy that recognizes problematic areas of the

business, defines improvement efforts and projects, determines and implements data driven breakthrough level solutions…..in a predictable and repeatable manner to improve business results

Achieving Self Sufficiency

• Initialization–Provides the structure for …. A predictable and repeatable enterprise

wide strategy to improve business results

• Process Management –Provides a method to….Identify potential improvement efforts and

projects, improve processes and manage process performance

• Six Sigma–Provides the knowledge to…. Determine and implement data driven

breakthrough level solutions to problematic areas of the business



Business & Process Management

System

Quality ManagementSystem

Quality Management - The set of strategies, tactics and practices collectively used as a Company to competitively achieve business objectives and to satisfy customers.

Where Most Start

The First Realization

Business and Process Management - The way we view our business efforts, set our expectations, determine our decisions, and the way we lead the Company to optimally satisfy all of our stakeholders.

Core Competency

What is Ultimately Achieved

Core Competency - The intellectual knowledge and capability of employees to quickly and accurately solve problems, to align and optimize business process and to make better decisions

The Path to Self Sufficiency

11

22

33

Six Sigma becomes the “Way We Think and Work”

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