6 six sigma presentation
TRANSCRIPT
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Special PresentationSpecial Presentation
Six Sigma Deployment Six Sigma Deployment in the EPC Businessin the EPC Business
CII Annual Conference Orlando, Florida July 29-31, 2003CII Annual Conference Orlando, Florida July 29-31, 2003
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Six Sigma Deployment Six Sigma Deployment in the EPC Businessin the EPC Business
Special PresentationSpecial Presentation
CII Annual Conference Orlando, Florida July 29-31, 2003CII Annual Conference Orlando, Florida July 29-31, 2003
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Six Sigma uses a rigorous set of tools and Six Sigma uses a rigorous set of tools and
methodologies designed with one purpose in mind — methodologies designed with one purpose in mind —
to produce a dramatic improvement in work quality, to produce a dramatic improvement in work quality,
profitability, customer and employee satisfaction, and profitability, customer and employee satisfaction, and
leadership of business enterprises. leadership of business enterprises.
““Six Sigma is the new way of lifeSix Sigma is the new way of life
for doing business in our company.”for doing business in our company.”
Adrian ZaccariaAdrian ZaccariaPresident & Chief Operating Officer President & Chief Operating Officer
What is Six Sigma?What is Six Sigma?
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Why Six Sigma?Why Six Sigma?
Root cause analysisRoot cause analysis
Ineffective lessons learned programIneffective lessons learned program
Talent shortage Talent shortage
Extensive inspection and reworkExtensive inspection and rework
Positive feedback from GE modelPositive feedback from GE model
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Relentless Search for Defects, Rework, and WasteRelentless Search for Defects, Rework, and Waste
Lost OpportunityLost Opportunity
Idle timeIdle timeReworkRework
InspectionInspectionOvertimeOvertime
CostsCosts
Near-miss safety incidentsNear-miss safety incidents
Missed commitmentsMissed commitments
Long cycle timesLong cycle times
Expediting costsExpediting costsInaccurate reportsInaccurate reports
Frustration and poor moraleFrustration and poor morale
Redundant processesRedundant processes
Cost of working capitalCost of working capital
Excessive planningExcessive planning
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Measuring Performance Using DataMeasuring Performance Using Data
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Could Six Sigma Work in Bechtel?Could Six Sigma Work in Bechtel?
19851985--9292 19931993--9494 19941994--9696 19961996--9797 1997-991997-99 2000 …2000 …
Motorola Motorola
Texas Texas InstrumentsInstruments
ABBABB Allied Signal Allied Signal
General General Electric Electric
HoneywellHoneywell
3M 3M
Bombardier Bombardier
DowDow
Nokia Mobile Nokia Mobile Phones Phones
USPSUSPS
Avery Avery Dennison Dennison
Crane Crane
Lockheed Lockheed MartinMartin
PraxairPraxair
Polaroid Polaroid CorporationCorporation
Shimano Shimano
SonySony
AMEXAMEX
Air ProductsAir Products& Chemicals& Chemicals
CelaneseCelanese
Citigroup Citigroup
DuPont DuPont
Ford Ford
Home Depot Home Depot
Johnson ControlsJohnson Controls
Shell Shell
Wal-MartWal-Mart
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Bechtel’s Improvement FrameworkBechtel’s Improvement Framework
Six SigmaSix Sigma Performance-Performance-Based LeadershipBased Leadership
(PBL)(PBL)
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A Project ExampleA Project ExampleTransport ProductivityTransport Productivity PIP Team:PIP Team: Channel Tunnel Rail Link (CTRL) project, UK, Channel Tunnel Rail Link (CTRL) project, UK,
CivilCivil
Objective:Objective: Increase spoils transport productivity by 15%Increase spoils transport productivity by 15%
Results:Results: Actual increase in productivity of 100% by Actual increase in productivity of 100% by shifting focus from total quantity of earth moved shifting focus from total quantity of earth moved per day to quantity moved per truck per day per day to quantity moved per truck per day
Improvements:Improvements: Installed additional haul roads; Installed additional haul roads; Segregated other haul routes to avoid conflict Segregated other haul routes to avoid conflict between dump trucks and other site traffic; between dump trucks and other site traffic; Introduced new procedure of removing trucks Introduced new procedure of removing trucks from worksite; from worksite; Introduced new primary metric of productivity Introduced new primary metric of productivity rather than percent progressrather than percent progress
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Strategic Plan for DeploymentStrategic Plan for DeploymentY = Y = ff (x) (x)
XX22 = Focus on a = Focus on a pipeline of ‘A’ pipeline of ‘A’
PIPs*PIPs*
XX11 = Perform as a = Perform as a seamless team seamless team
XX33 = = Institutionalize Institutionalize improvement improvement
benefitsbenefits
XX44 = Be self- = Be self- sufficientsufficient
Y = Y = SustainedSustained
‘A’ ‘A’ ResultsResults
* PIP = process improvement project* PIP = process improvement project
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Core PrinciplesCore Principles
Customer focusedCustomer focused
Prioritize according to targeted impactsPrioritize according to targeted impacts
Build on knowledge and experience of Build on knowledge and experience of resourcesresources
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Critical Success Factors at BechtelCritical Success Factors at Bechtel
Deployment managed like a projectDeployment managed like a project
Use of Performance-Based LeadershipUse of Performance-Based Leadership
Focus on projects Focus on projects
Dedicated resourcesDedicated resources
Strong executive supportStrong executive support
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Six Sigma Roles Six Sigma Roles
Black BeltBlack Belt Team Member
Yellow Belt (process owner)
StakeholderStakeholder
ChampionChampion
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How Bechtel’s Deployment Is OrganizedHow Bechtel’s Deployment Is Organized
Master Black Belt Deployment Coordinator
Operations ManagerDeployment Champion
President of Business LineDeployment Sponsor
Deputy COOExecutive Sponsor
Functional/Project Managers
Champions
Functional/Project Managers
Champions
Process OwnersYellow Belts
Process OwnersYellow Belts
Black BeltsBlack BeltsAll EmployeesTeam Members
All EmployeesTeam Members
OtherManagers
Stakeholders
OtherManagers
Stakeholders
Yellow Belt
Stake-holders
Champion
Black Belt
Team Members
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Rebar OptimizationRebar OptimizationPIP Team:PIP Team: Croatian Motorway Project,Croatian Motorway Project, CivilCivil
Objective:Objective: To improve the labor efficiency for installing To improve the labor efficiency for installing rebar at direct hire structure sites from 38 hours rebar at direct hire structure sites from 38 hours per tonne to 25 hours per tonneper tonne to 25 hours per tonne
Results:Results: Improved efficiency resulted in 15% reduced Improved efficiency resulted in 15% reduced costs over an eight-month periodcosts over an eight-month period
Improvements:Improvements: More transparent reporting process; More transparent reporting process; Structural engineers accountable for own Structural engineers accountable for own structures; structures; Maintaining rebar crew consistency; Maintaining rebar crew consistency; Prevent downtime through increased rebar stock Prevent downtime through increased rebar stock at sites, trained super crane operators, working at sites, trained super crane operators, working multi-sitesmulti-sites
Another Success StoryAnother Success StoryAnother Success StoryAnother Success Story
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Business CultureBusiness Culture
Think Process … Ask for DataThink Process … Ask for Data
Managers focused on data – variation, not averagesManagers focused on data – variation, not averages
Project teams focused on process – inputs and Project teams focused on process – inputs and customerscustomers
Functional organizations (Engineering and Functional organizations (Engineering and Construction) using data to validate best practices, Construction) using data to validate best practices, asking for business casesasking for business cases
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Relentless Focus on Self SufficiencyRelentless Focus on Self Sufficiency
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““The single most important The single most important decision that I’ve participated decision that I’ve participated in, in the last 10 years…”in, in the last 10 years…”
Riley P. BechtelRiley P. BechtelChairman & Chief Executive Officer Chairman & Chief Executive Officer
Leadership CommitmentLeadership Commitment
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Six Sigma Deployment Six Sigma Deployment in the EPC Businessin the EPC Business
Special PresentationSpecial Presentation
CII Annual Conference Orlando, Florida July 29-31, 2003CII Annual Conference Orlando, Florida July 29-31, 2003