discovering the reality of lean six sigma in manufacturing, services, and transactional environments
TRANSCRIPT
© 2004 American Productivity & Quality Center
1
replicating the gains from six sigma and lean
Replicating the Gains from Six Sigma and Replicating the Gains from Six Sigma and Lean: Capturing and Transferring Lean: Capturing and Transferring
Knowledge and Best PracticesKnowledge and Best Practices
Replicating the Gains from Six Sigma and Replicating the Gains from Six Sigma and Lean: Capturing and Transferring Lean: Capturing and Transferring
Knowledge and Best PracticesKnowledge and Best Practices
Discovering the Reality of Lean Six Sigma in Discovering the Reality of Lean Six Sigma in Manufacturing, Services, and Transactional Manufacturing, Services, and Transactional
EnvironmentsEnvironments
December 3, 2004December 3, 2004
© 2004 American Productivity & Quality Center
2
replicating the gains from six sigma and lean
APQC Mission
…to work with people in organizations around the world to improve productivity and quality by:
• Discovering, researching, and understanding emerging and effective methods of improvement;
• Broadly disseminating our findings through education, advisory and information services; and
• Connecting individuals with one another, and with knowledge and tools they need to improve
© 2004 American Productivity & Quality Center
3
replicating the gains from six sigma and lean
© 2004 American Productivity & Quality Center
4
replicating the gains from six sigma and lean
Study Purpose
The consortium research identified successful ways process improvement initiatives can use KM to “supercharge” the replication and transfer of best practices. This consortium studied how process improvement leaders incorporate KM into their process improvement methodologies (e.g., Six Sigma and Lean) to achieve operational excellence.
© 2004 American Productivity & Quality Center
5
replicating the gains from six sigma and lean
Scope Areas
1. Connecting people to people and people to information
2. Build knowledge capture and transfer steps and behaviors into improvement methodologies and training
3. Cultural and behavioral issues
4. Identify indicators and measures for success
© 2004 American Productivity & Quality Center
6
replicating the gains from six sigma and lean
Consortium Sponsors• American Standard Company • AFMC • Bank of America• BHP Billiton • Citigroup• Ford Motor Company*• Grupo IMSA
• Johnson & Johnson • JPMorgan Chase• Northrop Grumman• OSRAM SYLVANIA/Siemens
Power Generation• Washington Mutual
© 2004 American Productivity & Quality Center
7
replicating the gains from six sigma and lean
North AmericanIndustrial Gases
© 2004 American Productivity & Quality Center
8
replicating the gains from six sigma and lean
Analyze• Key Findings• Critical Success Factors & Enablers
• Successful Practices
Knowledge Transfer Session
• Final Report• Presentations• Q&A• Breakouts• Initial Action Planning
Kick-off Meeting• Review Partners• Develop Data
Collection Tools• quantitative• qualitative
Conduct Research
to ID Potential Partners
Finalize Data Collection Tools
• quantitative• qualitative
Contact Potential
Partners & invite them
to join study
Data Collection
Site Visits Write Case
Studies
• Collect Partner Information
• Collect Sponsor Information
Planning
Reporting
CollectingAnalyzing
Consortium Study Methodology
© 2004 American Productivity & Quality Center
9
replicating the gains from six sigma and lean
Previous Quality/Continuous Improvement Studies• Performance Measurement: Implementing the Balanced Scorecard
(2002)• Deploying Six Sigma to Bolster Business Processes and the Bottom
Line (2002) • Activity-Based Management 2000: Best Practices in Shared Services
and Information Technology (2000) • Measure What Matters: Aligning Performance Measures with
Business Strategy (2000) • Quality Approaches for the New Millennium (2000) • Performance Management: Tapping Your Organization’s People
Potential (1999)• Activity-Based Management III: Best Practices for Strategic
Improvement (1999)
© 2004 American Productivity & Quality Center
10
replicating the gains from six sigma and lean
Replicating the Gains of Six Sigma/Lean Model
© 2004 American Productivity & Quality Center
11
replicating the gains from six sigma and lean
Strategy Leads to Replication Success• Knowledge capture and replication programs must be aligned with
core business processes– Successful organizations embed knowledge capture and replication steps in
the Six Sigma/lean methodology – “Thin the middle layer of clay…”
• These activities must directly impact process performance, such as customer satisfaction, productivity improvement, and cost reduction for middle management to pay attention.
– Management must address core change management issues • Accountability, incentives, training, communication, metrics, and performance
evaluations drive knowledge sharing and replication behavior
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
12
replicating the gains from six sigma and lean
Partner Examples: Strategy• Intuit is integrating business management system with process
excellence (in 3 phases) with the intent to make process improvement a common language.
• Raytheon ensures alignment of R6σ by incorporating R6σ in the business’ strategic plans, operating plans, and reviews.
• DuPont expects 3 percent growth each year to come from Six Sigma projects, driving practitioners to replicate.
• Johns Manville’s Lean Six Sigma program partnered with manufacturing, marketing, and sales to drive to the “Gap to Entitlement.” This creates “pull” for replication.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
13
replicating the gains from six sigma and lean
Leadership Drives Replication• Engaged leadership support is required for knowledge
capture and replication with Six Sigma/lean programs– 75% of partners leadership expect results to be replicated.– 63% of partners use performance evaluations to drive the
successful capture/transfer of practices…a management process.
– Partners report moderate-to-frequent amount of active, demonstrated support for Six Sigma/Lean knowledge capture and transfer processes from executives (3.9) compared to sponsors (2.2) on a scale of 5.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
14
replicating the gains from six sigma and lean
Partner Examples: Leadership of Replication• DuPont’s CEO and senior executives established Six Sigma as the
way to transform the company by fueling growth, growing the top line, and enabling the bottom line.
• Raytheon combined Six Sigma, lean, and KM into R6σ to enhance continuous improvement with knowledge sharing and replication practices.
• Ford’s Corporate Quality Vice President is responsible for Six Sigma and Best Practice Replication.
• Intuit’s CEO drove implementation of Six Sigma and replication of results as the continuous improvement tools of the company.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
15
replicating the gains from six sigma and lean
Leadership Accountability for Capture and Replication
• Best practices are unlikely to spread across organizations if the organization does not make some effort to spread them1
– 63% of partners designated MBBs or Six Sigma/lean champions accountable for knowledge capture and transfer.
– KM programs and practitioners enable knowledge capture and replication, but Six Sigma/lean practitioners own the process.
• All partners have a network of champions, BBs, MBBs, KM brokers, and/or communities of practice with accountability to drive capture, sharing, and replication.
Gabriel Szulanski, Sticky Knowledge: Barriers to Knowing in the firm. 2003
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
16
replicating the gains from six sigma and lean
Linking with the KM Program• The KM program can act as a broker by linking appropriate groups
or people together where and when replication should occur.– KM is the enabler of the replication process, not the leader.– Can be part of the formal KM program strategy or more informally utilized.– 64% of partners indicate that interaction between KM and Six Sigma is moderate to
high on every project
• Partner examples:– Raytheon and Air Products completely integrated KM principles and program
components into continuous improvement processes.– Ford links Best Practice Replication focal points to Six Sigma project teams to capture
and disseminate best practices– Intuit has one KM PE professional (also an MBB) work to identify replication
opportunities and leverage across the enterprise
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
17
replicating the gains from six sigma and leanIntegration Implementation Plan
Customers Customers
3. COP Training Plan w/Toll Gates
1. Initialization Steps
2. Infrastructure Steps
4. KM Systems
AwarenessTQM/KM-basics
Foundations Readiness
5. COP/Project-Inventory(All Types-Design/Service/MFG/Transactional)
DEFINEHoshinFocus
Assignments
5SBasicLean
Takt-TimeMAIC
KMTG3
6. Company Genetics (Standardize/CTB-KOI’s)
YBasicTriz
RACITG1
DFSSTools
Feeder (X’s)
(Business)BusinessFunctions
(COP)
(People)Employee
Base
(Our Culture)
L in k
ing
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
18
replicating the gains from six sigma and lean
Tool: Success Checklist for Strategy/Leadership Ensure that executive management is involved in the replication
process through regular reviews and updates. Align replication strategy objectives with core business processes
and objectives. Assign accountability for knowledge capture, transfer, and
replication. Get the suppliers involved in the replication process. Leverage existing KM approaches to enable replication.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
19
replicating the gains from six sigma and lean
Tool: Replication Leadership Status Checklist1. Do you think the replication process is self-sustaining in your organization?
2. What is the status of your knowledge brokers?
3. How many project reviews do the senior executives attend (partially or wholly)?
4. How many projects are officially replicated, either in part or whole?
5. Have you and the finance department agreed upon the guidelines that define true savings with regard to replicated projects?
6. Do you think you are focusing on improving the efficiency of each project completion?
7. Does the status report you give to the champions and the Presidents include replications of successful projects?
8. Are the controllers aware of the savings garnered by replicated projects?
9. If you were to spot check the controllers, what defect rate would you find? In other words, how many similar projects were completed without replication?
10. What database are you going to use through the life of tracking your projects and capturing best practices?
11. Do those who share AND those who replicate get “credit” for the savings?
12. What are the consequences for champions that are not helping and driving replication?
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
20
replicating the gains from six sigma and lean
KM Methodology Company A Company B
Do you have a formal process in place to capture and transfer knowledge from one set of Six Sigma/Lean projects to other projects? Y N
Is knowledge capture and reuse built into Six Sigma/Lean methodology? Y N
Does Six Sigma/Lean training include knowledge capture and reuse tools and processes?
N N
Do you have a group accountable for knowledge sharing and reuse in your organization?
Y Y
Does the team responsible for knowledge sharing and replication support the Six Sigma/Lean process directly with resources and tools to facilitate replication?
Y N
Who drives/owns the knowledge replication process in your organization (None = 0, KM = 1, 6S champs = 2, Sr. Execs = 3)?
3 2
Section Score 88% 38%
Transfer Processes Company A Company B
Do you have an IT tool integrated with your Six Sigma/Lean process that allows practitioners to capture/find practices?
Y Y
Does your orgnization use project milestone reviews/project snapshots as an opportunity to capture/transfer knowledge? Y Y
Does your organization deliver replicable practices via push methods, create pull, or both? (0=neither, 1=push or pull, 2=both) 1 0
What percentage of Six Sigma/Lean practitioners belong to one or more networks or CoPs? (0=0%, 1=1-20%, 2=21-50%, 3=51-75%, 4=76-100%) 2 3
Section Score 63% 63%
Measuring Success Company A Company B
Do you measure the gains of replicated/reused practices from Six Sigma/Lean projects?
Y N
Have you captured the incremental cost savings from replicated projects? Y N
Is knowledge capture and reuse built into Six Sigma/Lean practitioners performance evaluation?
Y N
What percentage of Six Sigma/Lean projects have been replicated (part or whole)? (0=0%,1 =1-10%, 2=10-20%, 3=21-50%, 4=51-100%) 3 1
Section Score 86% 14%
KM Total Score 78% 26%
Tool: Leadership Replication Strategy Scorecard
Microsoft Excel Worksheet
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
21
replicating the gains from six sigma and lean
Building Replication into 6S/lean Methodologies• 100% of the partners build knowledge capture and transfer into the Six
Sigma/lean methodology.– Creates an internal marketplace for capturing and sharing best practices– Partners create “pull” by making replication part of methodology, but also “push”
relevant practices to practitioners. • 100% of partners have deployed capture and 75% have deployed
transfer enterprise-wide vs. 18% and 9% of sponsors, respectively.• Partner examples:
– DuPont’s step 1 and step 17 require practitioners to search for analogous projects and identify translation opportunities, respectively.
– Raytheon modified its methodology to include 3 questions around knowledge sharing and replication for all practitioners.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
22
replicating the gains from six sigma and lean
Partner Examples: Capture and Transfer Tools• Partners and sponsors use a mix of IT tools and face-to-face
processes to ensure capture and replication of tacit and explicit knowledge.– Intuit’s Tollgate reviews take place at the end of each phase of its DMAIC
methodology and require updating of Quickbase repository.– Johns Manville uses gate reviews, Six Sigma Week conferences, and network
meetings to share and replicate practices.– DuPont requires practitioners to update SigmaTrac and uses champion
networks to transfer practices.– Raytheon uses several databases, executive briefings, and communities of
practice to drive capture and replication.– Ford has begun linking its Project Tracking System with the Best Practice
Replication system and communities to replicate practices across hundreds of locations.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
23
replicating the gains from six sigma and lean
Knowledge Capture and Transfer Components
88% 88% 88%
100%
88%
4.4 4.4
3.4
4.3
4.4
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Project milestonereviews, project
snapshots
Documentation ofwork flow/processes
Data/Knowledgerepositories
Executive briefings Face-to-face meetings
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Exte
nt
of
Eff
ecti
ven
ess
Frequency
Mean Value
n=8
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
24
replicating the gains from six sigma and lean
Roles – Who Makes Replication Happen?• Partners link KM roles with BBs/MBBs to drive responsibility for
knowledge capture and replication– Ford’s BBs capture project details and indicate where replication is relevant
• BPR CoP members identify nuggets for inclusion in BPR database– Raytheon’s KM brokers work with R6σ team members to drive networking and
collaboration– DuPont’s MBBs are responsible for reuse and translation– Johns Manville’s BBs capture, share, and interact with networks to drive
replication.• Partners ensure sustainability by driving Six Sigma/lean processes and
methodologies enterprise-wide.– Training includes knowledge capture/replication tools & processes– “White Belt” training, promotability, Green Belt scorecards
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
25
replicating the gains from six sigma and lean
Tool: Replication Process Model
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
26
replicating the gains from six sigma and lean
Step 1: Finding Replicable Practices
• During the Define phase, project teams should search for replicable, similar practices
• These might come from anywhere in the world…and can be pushed or pulled
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
27
replicating the gains from six sigma and lean
Step 2: Applying Practices
Best Practices
Best Practices
ExpertiseBest
Practices
Define Measure Analyze Improve Control
ExpertOpinions
Project team members should apply practices in each or any appropriate step
The organization’s Six Sigma/lean tools should allow project team members to locate the experts who can provide context around practices they wish to replicate
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
28
replicating the gains from six sigma and lean
Step 3: Improving the Project
Define Measure Analyze Improve Control
Identifying key Xs, measuring process throughput, and analyzing causes should be easier and faster with best practices
Black Belts should be able to complete more projects with greater impact each year if they will capture and reuse
Tighterscope
20 days to12 days
Differenttools
5 days to 2.5 days
New measures
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
29
replicating the gains from six sigma and lean
Step 4: Capturing Practices
Data
Server
Each team should capture best practices and improvements after completion of a key step of the project.
Examples: Fewer days for project because
of tight scope and leadership Reduction of project costs by… Identified X best practices to be
replicated Realized that control measures
needed tweaking, etc…
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
30
replicating the gains from six sigma and lean
Step 5: Feedback Improvements
Data
Server
To drive continuous improvement:
Provide ability to give feedback on replicated practices
Create a “push” subscription system to alert new practices
Encourage practitioners to “pull” new practices and improvements
Ensure that databases and IT tools contain most updated information
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
31
replicating the gains from six sigma and lean
Networks and CoPs connect experts and practitioners for tacit knowledge exchange
Networks and CoPs raise awareness of replication opportunities
Networks and CoPs begin to “own” improvement in their areas
Networks and CoPs prevent rampant duplication of effort
Networks and CoPs ensure that practices are validated and current
Certification and closeout presentations also serve as means to ID replication.
Step 6: Presenting to Networks
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
32
replicating the gains from six sigma and lean
Tool: Steps to ReplicationYEAR ONE
1. Enlist senior leadership to expect/enforce capture and replication.2. Add “knowledge replication” to Define phase and “knowledge
capture” to Control phase3. Set up database for best practices/lessons learned4. Develop ongoing project list that registers projected and actual
saving from parent and child projects5. Establish ongoing communication plan to build awareness for
replication opportunities6. Train key stakeholders on replication processes and tools7. Ensure reward/recognition system promotes capture and replication8. Develop common metric reporting system that updates status of all
projects monthly.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
33
replicating the gains from six sigma and lean
Tool: Steps to Replication (continued)YEAR TWO
1. Engage key suppliers/customers in replication process2. Build replication goals into company-wide strategic plans3. Host quarterly reviews with senior management; highlight
replicated projects’ impact4. Host certification events that recognize replication achievements5. Develop compensation plans that include Belts AND upper
management6. Create a “pull” system for replication by building “pull” into 6S
methodology and widely publicizing benefits
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
34
replicating the gains from six sigma and lean
Networks and Communities of Practice• Partner and sponsors organizations both tend to have CoPs
involved with overall Six Sigma/lean initiatives. • Half of partners report that 81 - 100 % of their Six Sigma/lean
practitioners belong to one or more CoP/network (sponsors were much lower).
• When asked how they report project results to others upon completion, the partners’ top two responses were – Projects results are shared among the appropriate CoPs, and – Projects are presented at face-to-face meetings, regional meetings, etc.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
35
replicating the gains from six sigma and lean
Partner Examples: Networks and CoPs• Ford leverages BPR CoPs (as well as belt and champion networks)
to identify nuggets for replication. – Ford has approximately 3000 members in 60 CoPs
• DuPont noted three key enterprise networks: small business unit champions network, MBB network, and the KM collaboration network.
– R&D is now able to link with marketing through networks to hear voice of the customer.
• Raytheon has KM champion and broker CoP, and R6σ suppliers, business leadership, strategic leadership, and technology networks
– All communicate to each other about project results, best practices, and lessons learned
• Intuit’s PE leader CoP meets monthly to discuss strategic topics and enhance progress of PE process.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
36
replicating the gains from six sigma and lean
Tool: CoP and Networks Model• Groups of people who come together to share and to learn from one another face-to-face and virtually.
• They are held together by a common purpose; they contribute to a body of knowledge and are driven by a desire and need to share problems, experiences, insights, templates, tools, and best practices.
• Community members deepen their knowledge by interacting on an ongoing basis.
SUVs/Trucks
Sedans
Minivans
Sports cars
Product Line
Communities of Practice
Gree
n B
elts
Bla
ck B
elts
Ma
ste
r Bla
ck
Belts
Ch
am
pio
ns
Pro
ces
s O
wn
ers
Ex
ecu
tives
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
37
replicating the gains from six sigma and lean
Tool: 10 Traits of Successful CoPs and Networks1. A compelling, clear business value proposition for all involved 2. A dedicated, skilled facilitator or leader 3. A coherent, comprehensive knowledge map for the core content of
the CoP 4. An outlined, easy-to-follow knowledge sharing process5. An appropriate technology medium that facilitates knowledge
exchange, retrieval, and collaboration 6. Communication and training plans for members and others outside
of the CoP 7. An updated, dynamic roster of CoP members 8. Several key metrics of success to show business results 9. A recognition plan for participants 10. An agenda of critical Six Sigma/lean topics to cover for the first
three to six months of existence
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
38
replicating the gains from six sigma and lean
Integrated IT Tools and Databases• Partners noted that an IT tool with a project process tool, project
capture, economic value, and knowledge/expertise repository makes for one-stop shopping.
– Each of the best-practice partners brands their Six Sigma/Lean and knowledge capture/transfer process with a tool.
• Sponsors indicated that improper tools were one of the largest barriers to knowledge capture
– Partners use a greater number of IT tools to support knowledge capture and replication - lack of connectivity was the biggest barrier.
• “Projects don’t exist unless they are in the system.”– IT tools support the Six Sigma/lean methodology and are integrated into the
processes practitioners use.– IT tools provide a convenient means of tracking and valuing project outcomes.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
39
replicating the gains from six sigma and lean
Partner Examples: IT Tools and Databases• Partners “brand” Six Sigma with their tools:
– DuPont’s Six Sigma TRAC– Intuit’s Quickbase– Johns Manville’s E-Tracker– Ford’s Best Practice Replication and Project Tracking Systems– Raytheon’s URKM and RMS portal
• Partners use IT tools for tracking and valuation– Ford’s Project Tracking System (and BPR) have a built-in subscription
process and contain validated project outcomes.• Includes realized value, critical actions, areas of impact, etc.
– DuPont’s Sigma Trac contains all active projects, learnings, references, expert location, procedures, and links to databases.
– Intuit’s Quickbase captures all project information, expert information, best practices, and links to databases.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
40
replicating the gains from six sigma and lean
Tool: Integrated IT Tools – Checklist Replication process overview Project database
– Outline– Project milestones– DMAIC/Lean process outputs– Results– Best practices/lessons learned– Project savings– Subscription capability
Collaboration capability Content Management
Process Classification Framework or Taxonomy
Expert Location for follow-up Project Workflow Communities of Practice
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
41
replicating the gains from six sigma and lean
Building a Replication Business Environment• Tailor the knowledge capture and transfer process to fit the culture.
– If sharing and reuse are not the norm, management mandate and building replication into the 6S/lean methodology are keys.
– If have a sharing culture, ensure processes and tools make it easier.• Identify and overcome barriers to the capture and replicating
process.– Partners ranked absorptive capacity as top barrier. K-sharing and replication
should help reduce time demands.– Partners indicate that making knowledge capture and replication part of the
performance evaluation drives success.• Prevent reinvention of the wheel.
– Management should demand that best practices are replicated by building replication processes into methodology
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
42
replicating the gains from six sigma and lean
Building a Replication Business Environment (cont.)• Strong knowledge capture and replication demands constant and
varied communication – Ford noted that many people are unaware of replication processes, so communication is
key!– Raytheon created a comprehensive communication plan, including R6σ brochures, video,
and KM passport.– Johns Manville encourages “White Belt” training for all employees to raise awareness of
Lean Six Sigma.
• Partners drive knowledge capture and replication by embedding KM processes in training
– 100% of partners embed training on KM processes, tools, and methodologies in Six Sigma/lean training vs. 18% of sponsors.
– Raytheon integrated comprehensive knowledge capture and transfer training materials into the R6σ curriculum. MBBs, BBs, and GBs are required to share knowledge as part of certification.
– Johns Manville embeds training on Web page, storyboard, E-Tracker search, and report outs in Lean Six Sigma training.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
43
replicating the gains from six sigma and lean
Tool: Capture/Replication Communication Vehicles1. Executive/Team briefings2. Networks and CoPs3. Searchable data/knowledge repositories4. Project milestone reviews5. Documentation of workflow and processes6. Face to face meetings7. Lessons Learned/After Action Reviews8. Leadership briefings9. Scorecard reviews10. Certification panels11. Internal conferences/forums12. Storyboard/poster sessions
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
44
replicating the gains from six sigma and lean
• The importance of knowledge capture and replication to the organization’s success
• Goals of replication and Six Sigma/Lean• What’s in it for me?
– Faster projects, greater results• How to use the capture, sharing, and replication tools as
part of the 6S/lean methodology • Recognition of success• Measures of replication success
Tool: Replication Training Checklist
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
45
replicating the gains from six sigma and lean
Measurement: The means and the end• Partners focus on measuring gains and outcomes, and replication is
a means to an end, not the end itself.• Management is interested in outcomes, but as leaders of the
process, improvement practitioners should measure the replication process itself.
• 88% of partners use the quantitative benefits of the Six Sigma/lean program to measure the health and effectiveness of capture and replication. – Replication is built into methodology, so can deduce success with improved
Six Sigma/lean results– 75% use stories and anecdotes of replication to indicate success.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
46
replicating the gains from six sigma and lean
Measurement (continued)• 75% of partners rate effectiveness of capture and replication
processes as moderate or high…but most don’t have explicit measures.– Only 18% of sponsors were moderate to high– For partners - management mandate, inclusion in methodology, and
performance evaluation drive results. • Only 50% of partners explicitly measure health and effectiveness of
knowledge capture and replication.– Partners indicate that management mandate to replicate and inclusion of
replication in methodology drive results.– Management hasn’t required explicit measurement of replication because it’s
expected as part of program. – Intuit measures practitioners on data in Quickbase – if it’s not available for
others, it doesn’t count!
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
47
replicating the gains from six sigma and lean
Partner Examples: Measurement• Ford expects each plant to replicate a certain number (3-5 or more)
Six Sigma projects or nuggets per year and tracks results in master schedule.– Approximately 1-2% are replicated and make it to BPR
• DuPont estimates 20% of projects are replicated or reused.• Intuit’s management sets aggressive goals, causing BBs to “pull”
previous practices, but does not measure. • Raytheon does not measure replication explicitly, but receives
continued funding to support KM processes.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
48
replicating the gains from six sigma and lean
Measurement (continued)
• Top three non-financial benefits of knowledge capture and replication:– reduction in duplication of efforts and/or projects– rapid transfer of best practices and implementation– achieving cultural change within the organization
• Practitioners can develop qualitative and quantitative indicators of the process of replication, and its relationship to outcomes.– Focus on linking inputs to outcomes with explicit replication
measures (see next slides for model and suggested measures).
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
49
replicating the gains from six sigma and lean
Tool: Measuring the Effects of Replication
3. % of completed projects replicated (part or whole)
4. % of projects underway replicating practices
ProcessImprovement
1. # of projects capturing practices
2. % of practitioners in CoPs or networks
Input
Individual Projects
Sales
Manufacturing
Cust Svc
Outcome
5. Average days to complete replicated steps v. days to complete parent steps
6. Financial savings per replicated project
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
50
replicating the gains from six sigma and lean
Tool: Suggested Metrics Checklist• Practitioners can use these metrics to guide the process of
replicating Six Sigma/Lean results
Activity • # of projects capturing practices• % of practitioners in CoPs or networks
Process Improvement
• % of completed projects replicated (part or whole)• % of projects underway replicating practices
Outcome: • Average days to complete replicated steps v. days to complete parent steps
• Financial savings/replicated project• Estimates of replication success
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
51
replicating the gains from six sigma and lean
Recognition: What’s in it for me?• Only a few partners have a separate reward and recognition program
for the capture and replication of project practices– Ford highlights valuable replications during Six Sigma champion/owner network
meetings.– Raytheon provides a KM airline and travel award and KM thanks
• Most provide incentives to practitioners for outstanding Six Sigma/lean work– Since 100% of partners build capture/replication into Six Sigma/lean programs,
incentives reward knowledge sharing behavior.– DuPont and Johns Manville's corporate policy encourages Six Sigma
competence as either a certified BB, MBB, or champion for promotion to a senior leadership position
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
52
replicating the gains from six sigma and lean
0%
50%
45%75%
18%25%
55%50%
9%13%
9%63%
27%38%
9%
13%
0% 20% 40% 60% 80% 100%
Incentives/Recognition
Management mandate
Peer pressure
Need for efficiency
Time pressures
Performance evaluations
Customer needs
Other
Q32B: What is driving the successful capture/transfer process for Six Sigma/Lean projects for Six Sigma/Lean practitioners at your organization?
Sponsors Partnersn=19
Recognition: Performance Evaluations Matter
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
53
replicating the gains from six sigma and lean
Tool: Recognition Checklist1. Highlight particularly valuable replications at senior leader meetings.2. Send notes of commendation for outstanding work.3. Allow replicators and outstanding practitioners to shadow executives.4. Invite BBs or MBBs to present project findings at annual leadership
conferences.5. Provide special yearly Six Sigma awards (which emphasize sharing
and replication) for outstanding practitioners.6. Provide a KM-specific award for outstanding practitioners.7. Make knowledge capture and replication part of the performance
evaluation.• Knowledge Usage - open to new ideas and continuous learning. Learns from
others and replicates knowledge in work.• Knowledge Sharing - shares own knowledge with community. Builds
knowledge base and actively promotes sharing and replication.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
54
replicating the gains from six sigma and lean
Tool: Reward and Recognition Best Practices2
1. Time to capture and replicate knowledge has to be built into the Six Sigma/Lean methodology of the organization.
2. Make using the system self-rewarding. Build knowledge capture/replication into 6 Sigma methodology and provide a one-stop shopping for information people need to do their job.
3. Recognition often lies in being perceived as an expert by peers and management. Quality does matter.
4. “Link and Leverage” to existing 6 Sigma/Lean reward systems.
5. Recognize both parties or units involved, including both those who share knowledge and those who replicate knowledge.
6. Celebrate success stories and propagate tales of replication savings and contributions.
Modified from: O’Dell, Carla. “Reward and Recognition.” APQC, 2001.
CoPs IT Tools Environment MetricsStrategy Methodology
© 2004 American Productivity & Quality Center
55
replicating the gains from six sigma and lean
Wrap Up: What have we learned?
© 2004 American Productivity & Quality Center
56
replicating the gains from six sigma and lean
Wrap Up: What have we covered?
• The object is to be a more efficient, effective continuously improving organization – not sharing knowledge for knowledge’s sake.
• What did you learn?– Takeaways– Lessons Learned
• Fill out evaluations and survey• Final Questions• Thanks for being here…
© 2004 American Productivity & Quality Center
57
replicating the gains from six sigma and lean
Contact Information
John CragerSenior AdviserAmerican Productivity & Quality Center123 North Post Oak Lane, Suite 300Houston, Texas 77024(713) [email protected]
Visit our website at www.apqc.org