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Quality Discussion ForumAgilent Restricted
September 2006Page 1
Six Sigma Overview Quality Discussion ForumSeptember 2006
Peter DodgeSix Sigma Core Team
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Quality Discussion ForumAgilent Restricted
September 2006
Agenda
• Opening comments/introductions (Ed)
• Summary of the Six Sigma Model (Peter)
• Relationship of Six Sigma and Business Management Systems (Peter)
• Agilent’s Deployment (Peter)
• Results/Lessons Learned (Peter)
• Questions/Comments (Peter)
• Wrap Up/Adjourn (Ed)
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September 2006
Acknowledgements
Materials for this presentation have been provided by:
Six Sigma® is a registered trademark and service mark of Motorola.
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The Keys to Successful Business Improvement:
• Six Sigma principles of “top down” deployment.
• Integrated approach to leading improvement efforts.
• Driving results through engaged teams.
• Six Sigma analytic tools and a disciplined, standardized methodology for their use.
It’s all about delivering business results.
Achieving sustainable business improvement requires integrated team efforts linked to business priorities.
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September 2006
ManagementSystem
ManagementSystem
The Six Sigma Maturity Model
MethodologyMethodology
MetricMetric
• Managing process variation• Monitoring KPIs• Driving continuous improvement
• Team based problem solving• Consistent use of DMAIC model• Trained resources working in projects• Project selection and prioritization process
• Six Sigma drives strategy execution• Leadership sponsorship and review• Metrics driven governance process• Engagement across the organization
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September 2006
Six Sigma as a Management System
• ISO9000 Quality Mgmt Principles
• Customer Focus
• Leadership
• Involvement of People
• Process Approach
• System Approach to Management
• Continual Improvement
• Factual approach to decision making
• Mutually beneficial supplier relationships
• Six Sigma’s Parallels
• VOC & Critical to Quality Rqmt’s
• Group and Project Champions
• White, Green, & Black Belts
• DMAIC, DMADV
• Governance
• Breakthrough projects
• Robust statistical and financial analyses
• Joint Agilent-supplier projects as part of our Six Sigma Roadmap
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Six Sigma as a Management System
ScorecardScorecardGoalsGoals
Which activities will enable Which activities will enable you to achieve the Goals?you to achieve the Goals?
YY = = (1x (1x1 1 ,, 10x10x22 , 2x, 2x3 ... 3 ... ))
On-going Sponsorship and
Review
On-going Sponsorship and
Review
Six Sigma Project
Selection
ƒ
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Customer: Create Loyal Customers
Financial:Capture the
Value
Markets:Focus to
Win
Employees:Engage to Win
Big Y’s (FY 06
Priorities)
Little y’sw/ metrics
Vital XProjects
(= Six SigmaProjects)
Example: Translating Strategic Objectives Into Critical Six Sigma Projects at LSCA
• Customer relationship program
• Customer contact experience
• Business processes• Customer
Satisfaction: 8.2• Customer Loyalty:
Industry-leading
• IBS profitability• Sources of value of
SiG, CBC and SSI acquisitions
• >17% OP• >30% ROIC
• Employee engagement with customers
• Employee feedback on Sr. leaders
•70% favorable on customer-centricity
•Top quartile• 80% favorable on accountability
• New business growth for High-end LC/MS, Genomics, and LRM
• Core business share gains
• Market share: 23% (+1%)
• Product Supportability
• Warranty Conversions
• Customer Issue Resolution System
• Gold Quad Scrap• GC Column Scrap• Service Inventory
Mgmt• Eagle Quad Process
Improvement• SOX Process
Improvement• 3rd Party Sales
• 6S Champion, BB and GB training
• 6S Executive Training
• Custom Microarrays Made Easy
• EMEA Demand Generation
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DMAICThe Process Improvement Roadmap
1.0 Define
Opportunities
2.0 Measure
Performance
3.0 Analyze
Opportunity
4.0 Improve
Performance
5.0 Control
Performance
What is important?
How are we doing?
What is wrong?
What needs to be done?
How do we guarantee
performance?
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DMAIC Deployed - The Actual Project Lifecycle
1.0 Define
Opportunities
2.0 Measure Perform
ance
3.0 Analyze Opportu
nity
4.0 ImprovePerform
ance
5.0 ControlPerform
ance
How do we assure our
ROI?
LeverageImprove-
ment
Where can we extend the
gains?
6.0Monitor
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Meeting Customer and Business Objectives
Project Objectives CCR’s
CustomerIssues
________
________
________
_________
________
________
________
_________
VOC________
________
________
_________
VOB________
________
CTP’s________
________
BusinessIssues________
________
CBR’s________
________
CTQ’s________
________
VOB - Voice of the BusinessCBR - Critical Business RequirementsCTP - Critical to the Process
VOC - Voice of the CustomerCCR - Critical Customer RequirementsCTQ - Critical to Quality
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September 2006Page 12
Six Sigma® is a registered trademark and service mark of Motorola.
Agilent Technologies’Six Sigma Deployment
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What Six Sigma is to Me
“A fundamental management process
where we have a systematic approach to
solving problems.”
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?Interaction: Customer Satisfaction
Today’s Profile
TechnologyLeadership
CustomerIntimacy
Operational Excellence
Good
Excellent!Excellent!
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Agilent’s FY05 Results
~ 50%Customer,Quality or
New Product Introductions
~ 35% Cost / inventory /
supplier reductions and
yield improvements
~ 15% Other process improvements
~ 90 Projects
Across GIO functions and
business groups
Financial Benefits:$1.2 M Hard $$8.3M Soft $
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September 2006Page 16
Launch ManageSustain & Grow
The way we work
Agilent’s Six Sigma Roadmap:Enabling a fundamental management process that anticipates and meets customers’ needs, and provides a data driven approach to solving problems.
FY05 – FY06 FY06 - FY07 FY07 - FY08 FY09 & beyond
• Establish vision
• Develop Launch Plan
• Select external provider
• Develop 1st wave Black Belts & Champions
• Establish financial benefits guidelines
• Introduce White Belts
• Complete first and second Black Belt projects
•Introduce Green Belts
• Establish management metrics and governance process
• Align project selection with businesses’ strategic direction
• Implement project tracking system
•Enable learning organization via Belt and Champion Forums
• Establish formal recruitment and career progression for GBs, BBs & MBBs
• Introduce Design for Six Sigma (DFSS), Lean concepts
• Extend projects internally and externally (with customers and suppliers)
• Extend skills development for Belts and Champions
• Standardize quarterly management reviews at business/corporate levels
• Anticipate customer needs, fueling growth
• Assure Six Sigma is a core competency in the management system
• Integrate Six Sigma into the SPR process
• Following our success, suppliers implement Six Sigma
• Implement Six Sigma as a key methodology for achieving results for our shareholders, customers and employees
Format adapted from: Leading Six Sigma by Snee & Hoerl (2003)
Version: Sept 8, 2006
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How we’re doing itProgram details
FY07 Schedule
51 Black Belts FY05
207 Green Belts FY06
162 Champions
November - December: Champion training
21
72 81
20 Black Belt Candidates FY06
8
AMERICAS
16
50 42
4
EUROPE
14
63 39
8
ASIA
As of August 31, 2006 9,734 Certified White Belts at Agilent
235 Green Belts FY06
60 Champions
37 Black Belt Candidates FY06
FY05 & 06
FY07
December - May: Black Belt trainingDecember - May: Green Belt training
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What Have We Learned?
Things to Avoid
• “Big Bang” Projects
• “Belt Factories”
• Keeping score via project count
• Working the Trivial Many
• “Try Harder” Improvements
AVOID
AVOID
AVOID
AVOID
AVOID
AVOID
AVOID
AVOID
AVOID
AVOID
AVOID
AVOID
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What Did We Learn?
Things to Copy
• Dedicated resources: Champions and ‘Belts
• Focused projects achievable in 3 - 6 months
• Apply Six Sigma methodology to all functions and departments
• Build organizational competence
• Fully engaged senior management
• Focus on the methodology and establishing rigor
COPY
COPY
COPY
COPY
COPY
COPY
COPY
COPY
COPY
COPY
COPY
COPY
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How does a Business ensure success?
1. Be familiar with expectations and responsibilities.
2. Governance!
– It’s the method of translating the Champion’s responsibilities into action
– It’s ACTIVE management to ensure Six Sigma goals and objectives are achieved.
– This means monitoring and advancing:
• Black Belt and Green Belt projects
• Financial benefits
• Leadership behaviors that create the desired change
• Desired culture
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Roles & Responsibilities
CATEGORY LEVEL JUMP
START
DEFINE MAIC PROJECT REVIEW
MGMT. RVW
LEVERAGE /
MONITOR
Executive Leadership Team
CEO Direct Repor
ts
Senior Sponsor,Group Champion
Sr.Manager
ProjectChampion
Int.
Manager
Black Belt Mgr /
Prof Staff
Financial Analyst Prof Staff
Green Belt Mgr /
Prof Staff
- Primary responsibility
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Six Sigma GIO & Business Champions
Agilent Technologies
Electronic Measurements Group
John Herniman
Agilent Laboratories – Martin Neil
Bio-Analytical Measurement
ElectronicMeasurement
General CounselPat Barrett
Information TechnologyRich Kellen
Director of Agilent Labs
Workplace ServicesTBD
Customer & QualityJani Thompson
Corporate FinanceAnne Myong
Global SourcingAnagha Kale
WBUJohn Prouty
Revision Date: 7 September 2006
WWFO Roberta Lycette
Finance & AdministrationAnne Myong
ATIVenky Valluri
Human ResourcesTBD
EIBUAznul Shahrim
WCSSMartin Wisser
Life Sciences and Chemical Analysis
Keith Price
CASUNancy AdamsLSSURenee Olson
WWOF Kristin Giffin
WWSMSDiana Fandel
CSSDNeil NoronhaSSD Mary Pat Knauss
NDSTBD
What is a GIO & Business Champion
Provide focus, leadership
and commitment. Influence peers
in the application of Six Sigma.
Fight for cause of Black Belts &
remove barriers.
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Agilent’s Six Sigma Resources• Core Team
• Jani Thompson, Director
• Peter Dodge, Program Manager
• Paul Renfrew, Education & eRoom support
• Chris Grantz-Carter, EMG Program Manager
• Vickie Eckert, LSCA Program Manager
• Websites, Tools & Training Materials
• Agilent Six Sigma: http://sixsigma.quality.agilent.com/index.asp
• EMG Six Sigma: http://emg.communications.agilent.com/quality/education/sixsigma.asp
• LSCA Six Sigma: http://lsca-quality.business.agilent.com/six_sigma/index.asp
• EMG Financial Calculation Template (FaCTS) Training slides &…
• EMG Financial Calculation Template (FaCTS)
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Q & A
To ask questions:
1. By phone - Press #5 to un-mute
your phone.or
2. By Webex – Send Chat:a) Publicly to All, orb) Privately to either Host or Presenter
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