advanced track: six sigma/lean for the contingent workforce · 2020-06-04 · supplier...

© 2011 Crain Communications Inc

Advanced Track: Six Sigma/Lean for the Contingent Workforce

• Jeannee Hoppe, Global Program Manager, 3M Company~ Six Sigma Black Belt

• Jason Ezratty, Managing Partner, Brightfield Strategies~ Six Sigma Black Belt

© 2011 Crain Communications Inc

Don’t Believe the Hype

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Or, Maybe You Heard Six Sigma was Just for Nerds…

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Some Fear Six Sigma Promotes a Scary Future of Conformity

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Even Dilbert Took a Swing at Six Sigma…

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What is Six Sigma?

• Quality Focused: The sixth standard deviation from the mean~ 3.4 defects per million opportunities

• Customer Focused: Priorities, Preferences, & Perspectives

• Data Focused: Quantitative & Qualitative

• Team Focused: The group is smarter than any individual

• Results Focused: Success is defined in business terms right from the get-go

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Quality Speak: Opportunities, Defects, & Defectives

• Opportunities: every component of the shirt, from fabric, to stitching, to buttons, and labeling.~ Any component of the shirt that may go right or

wrong

• Defects: total number of dissatisfied opportunities~ The various things that went wrong with the

shirt

• Defectives: shirts that contain at least one defect~ There is a many-to-one relationship between

defects and defectives

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Histogram Quantifies Defectives

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Six Sigma Aims to Eliminate Variance

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The Six Sigma Way of Thinking

• Company-wide commitment vs Project/Activity-focused use of tools

• Empirical evidence & conclusions

• Begin by analyzing problems & their causes, not guessing at solutions

• Solutions need not be conventional

• Solutions need not be expensive or complicated

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Process Improvement Framework: DMAIC

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Do the Homework

Cutting Corners is Always More Painful, Costly, & Time-consuming

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Determining Process Measures: SIPOC+

• Supplier

• Inputs

• Process

• Outputs

• Customer

• “Plus” Process Step Analyses:~ Quantitative Measures

~ Value Adding vs Non-value Adding

~ Controllable vs SOP vs Noise

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CW Program SIPOC+ Areas

SUPPLIER MGMT.

-Supplier Identification

-Profiling & Onboarding

-Performance & SLA Review

SOURCING INITIATION

-Definition of Need

-Articulating Request

-Associating Budget & Accounting Fields

SOURCING ADMIN.

-Request Refinement

-Request Approval

-Request Posting

Need to identify options for Who/What/Where/When/Why/How of this process

SOURCING EXECUTION

-Supplier Submissions

-Acceptance of Legal Terms

-Supplier & Solution Selection

-PO Approval

SOW EXECUTION

-Worker Onboarding

-Invoicing & Payment

-Change Ordering

-Offboarding

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Establish Program Foundation

1. Vision | Mission | Goals – Confirm Common Understandingo Critical-To-Quality Tree | Kano Model

2. Challenges | Opportunities – Identification, Characterization, Prioritizationo Failure Modes & Effects Analysis (FMEA) | Quality Function Deployment (QFD)

3. Causes | Constraints – Identification, Characterization, Prioritizationo Fishbone | 5-Whys

4. Solutions | Enablers – Identification, Characterization, Prioritization

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Understanding & Prioritizing Customer Requirements: The Kano Model

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Turning Meetings into Six Sigma Workshops

• Ask attendees to break-up into X teams• Random selection (e.g. count-off 1-X) to promote diverse team membership• Teams function without hierarchy, all input respected• Everyone expected to share in team roles of: Participant, Recorder & Reporter

• Participant: provides input and analysis per team exercise• Recorder: summarizes & sketches team output on large sticky pads• Reporter: represents team’s output to larger summit attendees to bring it all

together

• Ground Rules• Rules are to be agreed upon or added to by consensus of attendees• Be present & engaged• Start & Stop on time• No laptops or cell phones• Have fun…

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Identifying & Prioritizing Problems & Opportunities

• Six Sigma tool used to identify & prioritize what can go wrong

• Identify failure modes impacting Quality, Efficiency, Cost, or Risk

• Failure modes prioritized based on Risk Priority Number (RPN), the product of:

• Severity: how bad is this failure mode when it happens?• Occurrence: how often does it happen?• Detection: how hard is it to detect when the failure mode is

happening?

FMEA: Failure Modes & Effects Analysis

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Abbreviated FMEA

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Identifying Causes: Fishbone Diagram

• Fishbone: Identifying causes to problems & challenges

• Six Sigma tool used to identify various causes from 6 points of view

• Causes prioritized based on ability for cure to best resolve problem

• Team Exercise• Teams break into groups, each assigned

priority problem areas to identify causesfor (from FMEA)

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The Fishbone

PROBLEMPROBLEM

Machines Methods Materials

Measurements Environment People

Identify causes of problems, challenges, or unmet opportunities

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

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CW-focused Fishbone

PROBLEMPROBLEM

VMS Config Processes Forms & Notifications

Metrics & Reports Regs & Policies Users, Stakeholders & Suppliers

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

cause

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Other Methods of Identifying Causes

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6-3-5 Brainstorming Method

• 6-3-5: 6-people (or more) have 3-minutes to come up with 5-ideas

• Six Sigma tool used to bring structure, creativity & democracy to brainstorms

• Team Exercise• Teams break into groups, each

assigned priority problem causes to identify solutions for (from Fishbone)

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6-3-5 Worksheet

Focus on solving the cause, encourage creativity, keep timing strict.Iteratio

n Idea 1 Idea 2 Idea 3 Idea 4 Idea 5

1st

2nd

3rd

4th

5th

6th

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Solution Prioritization

• Solution Prioritization Matrix

• Pugh Method ~ better for arriving at hybrid

solutions

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Talent Quality 5.0 +/- 0 5.0 25.0 +/- 18.8 2.0 10.0 +/- 5.8 7.0 35.0 +/- 20

Customer Satisfaction 5.0 +/- 0 7.8 39.0 +/- 13.5 5.5 27.5 +/- 20.7 5.5 27.5 +/- 20.7

Timekeeping & Invoicing Accuracy 4.2 +/- 1.1 9.0 37.8 +/- 9.9 6.0 24.0 +/- 15.9 5.5 18.5 +/- 10.7

Cultural Fit 4.6 +/- 0.9 9.0 41.4 +/- 8.1 4.5 21.0 +/- 16.3 6.0 28.5 +/- 19.3

EMEA Regional Breadth 3.0 +/- 1.3 3.4 12.2 +/- 14.1 4.5 15.0 +/- 14.5 9.0 27.0 +/- 12.8

Existing Institutional Knowledge 2.4 +/- 0.9 6.6 16.8 +/- 12.3 2.0 4.5 +/- 2 2.5 6.5 +/- 4.2

Experienced Program Management Team 3.8 +/- 0.5 7.8 29.4 +/- 10.5 5.5 21.8 +/- 16.9 7.5 29.3 +/- 13.5Recruitment Speed 4.2 +/- 0.5 5.4 23.4 +/- 16 2.5 10.0 +/- 4 7.5 30.0 +/- 12

Assured & Timely Offboarding 3.4 +/- 0.9 5.4 19.8 +/- 16.1 2.5 7.5 +/- 3 4.5 13.5 +/- 9

Experienced with all CW Classifications? 1.0 +/- 0 3.8 3.8 +/- 3.1 2.5 2.5 +/- 1 4.0 4.0 +/- 3.5

Exposure to Niche Suppliers 3.6 +/- 0.9 1.4 5.2 +/- 3.9 2.5 8.5 +/- 4.2 9.0 31.5 +/- 9

Onboarding Speed 4.0 +/- 0.8 6.6 26.4 +/- 14.7 4.0 15.8 +/- 14.2 7.5 29.3 +/- 13.5

Metrics-Based Performance Management 3.4 +/- 0.9 3.4 13.8 +/- 17.7 2.5 7.5 +/- 3 9.0 27.0 +/- 0

Time to Implement 4.2 +/- 0.5 7.8 33.0 +/- 12.4 2.5 10.0 +/- 4 4.0 16.0 +/- 13.9

Access to Rate Intell igence Data 3.8 +/- 0.5 3.8 15.0 +/- 12.4 3.0 11.3 +/- 1.5 9.0 33.8 +/- 4.5

Total Cost of Ownership 4.4 +/- 0.6 1.4 6.4 +/- 4.9 2.5 10.8 +/- 4.8 7.5 32.3 +/- 14.2

Savings Potential 3.2 +/- 0.5 1.4 4.4 +/- 2.7 2.5 8.3 +/- 3.8 9.0 29.3 +/- 4.5

Sourcing Model Flexibi l ity 3.6 +/- 0.6 1.4 5.2 +/- 3.9 2.0 7.3 +/- 4 7.5 27.8 +/- 11.4

Supplier Compliance Enforcement 3.2 +/- 0.5 5.0 16.8 +/- 14.1 2.0 6.3 +/- 3.3 5.5 17.3 +/- 11.9

End-User Policy Compliance 4.0 +/- 0 7.4 29.6 +/- 14.4 4.0 16.0 +/- 13.9 4.0 16.0 +/- 13.9

Complement to Corporate Procurement Strategy 4.6 +/- 0.9 1.0 4.6 +/- 0.9 1.5 6.0 +/- 2 9.0 40.5 +/- 9

TOTAL WEIGHTED SCORE 78.6 409.0 251.3 520.3

MAX POSSIBLE SCORE 707.4 = 100% 58% 36% 74%

Avg=5.2 Avg=3.2 Avg=6.6

CRITERIA

RISK

QU

ALI

TYEF

FICI

ENCY

COST

WEIGHTVendor Neutral Managed Service Program VN-MSP

Vendor-Centric, New Supplier

Reinforce Contract, Relationship

SOLUTION PRIORITIZATION MATRIX: SUMMARY ANALYSIS ACROSS EVALUATORS

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Be a Six Sigma Hero

• It’s about Measurable Results, Not Belts

• It’s about Being the Leader with the Tools for the Job

• It’s about Extracting the Best from Team Members; Sharing & Celebrating Victories

© 2011 Crain Communications Inc

Happy to Take Additional Questions

• Jeannee Hoppe, Global Program Manager, 3M Company~ Six Sigma Black Belt

• Jason Ezratty, Managing Partner, Brightfield Strategies~ Six Sigma Black Belt