six sigma free module
TRANSCRIPT
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6+Six SigmaSix Sigma PlusPlus
Black Belt TrainingModule 1Module 1
IntroductionIntroduction
All rights reserved. The materials contained in this publication shall not be copied by any
means including but not limited to photo reproduction, electromagnetic, or optical
transcription nor stored in a retrieval system of any kind without the the express written
consent of Adams Associates. [email protected] (979) 297-5198
Welcome to yourNew , Improved and FREE Six Sigma PlusPlus Black Belt training
module.
Have fun and enjoy the power of knowledge. What will you do with your power?
And now on to the free module.
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List the major components ofachieving world class
performance.
Explain meaning of six
sigma.
List key elements of
organizational improvement
strategy.
Bench MarkingBench Marking
List motivators fororganizational change
List the basic steps of every
six sigma project.
Please take a few moments to answer each questions in the above self-
assessment quiz.Notice: these quiz questions are in fact the module objectives. It is
the intention of this course design to provide you with the tools and skills for which
we will test on regarding certification.
The purpose of this self assessment is to give you an indication of how well
you might know all or part of this material. It should help you to focus on
areas where you might need a bit more study.
Please use your self assessment score to compare to your final quiz.
Write your answers in your personal notebook regarding this module.
As you proceed through the module, locate correct answer(s) to any
question(s) you might have missed. You will discover the identical Quiz at
the end of the module.
Percentage of improvement over your benchmark quiz is dependent on the amount
of effort you apply to learning the module objectives.
We hope you will sign up with Six Sigma PlusPlus to complete your Six Sigma
Blackbelt training. Have fun and enjoy the power of knowledge!
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Another White Collar Slave
Process
Oh boy!... I have enough on my plate!!
Layoffs, cutbacks, re-engineering, and such have left most of us have plenty on our
work plates. Still our organizations strive to achieve desired business results. As a
result, most white collar jobs require us to take up the slack.
Most of us work 48 plus hours each week, attempting to stay abreast of theseextreme demands. The success of our businesses require more today than any other
time in history. How can we balance the needs for improvements for our businesses,
and our customers and our internal stakeholders? There are no magic bullets!
We invite you to take a look at a proven process, that sustains lasting improvements
for businesses, customers and internal stakeholders. A few of top companies such
as Motorola, GE, Sun Microsoft, Texas Instruments, Kodak and The Dow Chemical
Company are using Six Sigma to gain desired business result performances. Some
have already reduced defects to 3.4 defects per million opportunities!
OurSix Sigma PlusPlus training approach leads to your organizations lastingimprovements, freeing up time, energy, costs and other vital resources.
Six Sigma PlusPlus increases customer satisfaction, your world class performance,
your increased market share and your profits.
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Another Statistical Process??
Statistics can be defined as; A branch ofmathematics dealing with the collection, analysis,
interpretation, and presentation of masses of
numerical data.
OurSix Sigma PlusPlusprocess attempts to remove the fear and mystery of using
statistics in the improvement process by exploring definitions, interesting facts and
providing usable skills training. Ready for a sample? Lets go!
Statistics are a vital part of our everyday lives. How so? Most of us use statistics to
make important decisions about our everyday lives. We are bombarded by news of
statistical reports regarding our society in general, our health, insurance, mortality,
birth rates, economic conditions, growth in our communities, and so on. Can you
think of some recent statistical reports?
Statistics are collections of quantitative data. A statistic is a single term or datum in
a collection of statistics. A statistic is a quantity that is computed from a sample,
such as mean, average or sigma. A statistic is a random variable ( has variation or issubject to change) that takes on possible value as a statistic. The term statistical
means to relate to or employ the principles of statistics.
And so it is, we use statistics in our daily lives to make better informed decisions.
Why not do the same to improve our desired business results?
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What Is Different?
Over the last few decades businesses around theworld have used statistics to improve their desired
business results, so whats different about Six Sigma
PlusPlus ?
Most of us, over the course of the last few decades, have been involved in various
types of statistical improvements to make our organizations more competitive, to
claim larger market share and certainly to improve profits.
Many organizations that utilized these programs of the past have experienced some
impressive and positive results. But for the most part, organizations found that the
big ticket items of their desired business results didnt mature.
Why? Was this the fault of programs limitations, lack of skills, or maybe
managements lack of total commitment that denied the desired results? Maybe a
combination of each. What makes Six Sigma PlusPlus so much different?
Six Sigma PlusPlus melds the business organizations focus through strategy, then binds
the synergy of people and process, next it aims these at World Class Performance in
the areas that are Critical to the organizations Customers.
Utilization of statistics is certainly a large and important part of the process, but it is
only a part of ourSix Sigma PlusPlus comprehensive improvement process.
Lets take a look at some history of statistics.
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Origin of Statistics
Official statistics are as
old as recorded history.
There are several
accounts of census
taking in the old
testament of the bible.
The origin of descriptive statistics is generally traced to census taking by the
Babylonians and Egyptians, 4500 - 3000 B.C.
During the Medieval period, governments began to keep records of land ownership.In 1086, William The Conqueror ordered the Doomsday Book be written. This
book was a record of the ownership and value of lands of England. This work was
Englands first statistical record.
Statistics are used in almost every field of human endeavor, the applications of
statistics are endless.
Understanding statistical principles can help us in most of our chosen fields andhelps us to make more informed decisions in our personal life almost daily.
Can you think of some examples of other types of statistics we use to help us make
informed decisions?
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Origin of
Modern Statistics
Henry VII had a great
fear of the plague, and
because of this England
began to register its
dead in 1532.
At about this same time, French law required its clergy to register all baptisms,
deaths, and marriages.
During a plague outbreak in the late 1500s, England began to publish weekly deathstatistics. By 1632, these Bills of Mortality listed both births and deaths by sex.
John Grant (1620 - 1674), a store owner, began to study these publications in his
spare time. He noticed some unusual things such as the difference between the birth
and mortality rate of men and women.
Grant published his observations and analysis in 1662 in a work titled, Natural and
Political Observations Made Upon the Bill of Mortality.
For his achievement of using past records to predict future events, Grant was made a
member of the original Royal Society. Grants works are considered, by many, to
mark the birth of modern statistics.
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Origin of
Modern Statistics
The word statistic was first used (1719 - 1772).
Statistics were first introduced into the English
language.
Six Sigma, the latest in the statistical arsenal.
The word statistic was first used by Gottfried Achenwall (1719 - 1772), a
professor at Marlborough and Gottingen, Germany. The word comes from the
Italian word statista meaning statesman.
Statistics were first introduced into the English language by E.A.W. Zimmerman of
England. It was popularized by Sir John Sinclair in his work, Statistical Accounts
of Scotland 1791-1799.
There have been many contributions made to improving the uses of statistics.
More recently are Statistical Process Control, Statistical Quality Control and finally
Total Quality Management.
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Origin of
Modern Statistics
British Nurse Compiled
Mortality Statistics from
British Military
Hospitals.
England, France and Turkey were allied against Russia in the Crimean War 1854 -
1856. This was the first to have War Correspondents at the battle sites using a new
technological advance called the telegraph. They would send, home to England, day
by day reports regarding battles, numbers of wounded, and conditions.
Sir Sidney Herbert, Secretary of War for England, wrote his friend nurse Florence
Nightingale asking her to lead a group of nurses to Scutari to care for the wounded.
October 1854, at age 34, Ms. Nightingale leading 38 nurses, set out for the battle
front.
She found conditions deplorable, unsanitary, little food or medical supplies,
wounded laying on dirt floors and their were no latrines. Many wounded would
continue to die as a result of these conditions.
Florence Nightingale produced shocking histograms graphically indicating a rapid
growth of the death rate of British soldiers, in hospitals as well as on the
battlefields.
Florence Nightingales statistics and effective presentations of same led to improved
hospitals conditions and measurable reductions in the death rates.
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Six Sigma Origination
1980s Motorola Early Black Belt Training
Six Sigma Today
The terms and concepts for Six Sigma Black Belts originated at Motorola in the
1980s and signified that individuals possessed special expertise in statistics and
technical product and/or product improvements methodology.
Six Sigma MasterBlack Belts suggested finely honed skills and discipline, while
the Six Sigma Blackand Green Belts had recognized depth of designed skills
training and experience.
Early Six Sigma Black Belt training was developed on a joint venture effort among
companies including Motorola, Texas Instruments, IBM and Kodak. This training
lead to an almost exclusively technical role that was focused on manufacturing and
product related improvements.
Today there is no official job description or certification for Six Sigma Black Belts.
The role and skills that once defined it have become much more diverse. Six Sigma
is used today, for example, in technical, non technical, non profit, service,
manufacturing, and safety improvement processes.
OurSix Sigma PlusPlus training process generically defines, provides skills training
and certifications forBlackand Green Belts.
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Strategy
PeopleSystems
World Class Performance
Internal
Customers
Moments of TruthMoments of Truth
6+
Six Sigma PlusPlus objective is designed to achieve World Class Performance.
Six Sigma PlusPlus applies in all areas. Some examples include insurance brokerage
services, hospital care, bulk chemicals, training services, commodity fasteners,silicon chips, software, gas turbines, cars, jet airplanes, safety, and everything any
of us do to generate income.
Six Sigma PlusPlus approach starts with a well conceived and communicated Business
Strategy that addresses:
People and People Development
Processes and Systems
Six Sigma PlusPlus approach to projects
The result of successful Six Sigma PlusPlus application is the melding of the business
organizations focus, through strategy, binding the synergy of people and process
that is aimed at World Class Performance in the areas that are Critical to the
organizations Customers.
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Strategy
PeopleSystems
World Class Performance
Internal
Customers
Moments of TruthMoments of Truth
6+
Drawing on the concept that any endeavor should start with the end in mind, we
consider World Class Performance as defined by the customer in the market place,
to be the objective that all businesses should seek to achieve.
With that as the desired objective, the over all business unit strategy must be
developed. This strategy will have 6-9 key performance areas at any one time. As
one moves down the organization these 6-9 key performance areas will gain more
and more specific application to those in a specific part of the organization.
Stakeholders should be able to make a direct link between the daily activities they
are performing and at least one of these 6-9 key performance areas.
Six Sigma PlusPlus Improvements come in two different ways: Systems & People
1. To improve the systems and processes that are in use, using all of the
process improvement tools.
2. Development of the capability of people as individuals, in teams and as an
organization.
Efforts to improve one to the exclusion of the otherwill notbe as effective as an
approach as will an approach that considers and includes both.
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Six Sigma PlusPlus
Philosophy
Statistic
Process
Six Sigma PlusPlus is a philosophy, or understanding, that defects cost money. One way
to become more profitable is to eliminate defects. Organizations that do this have a
lower cost structure and are more likely to have higher profits and loyal customers.
Defects cost money, fewer defects mean less cost to the producer and customer.
Lowest cost generally makes for the most competitive producer.
Six Sigma PlusPlus is a performance metric. Meaning that the product or service is
performing at a level where the chances of a defect are less than 3.4 in a million
opportunities.
The 3.4 ppm defect rate is for a not what you find if you look at a normal
distribution table considering both tails. In a later module we will explore why the
1.5 standard deviation shift of the mean produces no more than 3.4 ppm defective.
Six Sigma PlusPlus is a methodology for working on projects utilizing specific phases.
These are Strategy, Define, Measure, Analyze, Improve, and Control.
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Measure Align Strategic Plan, Value, Scope, DocumentProcess, Capability, Measurements,Performance.
AnalyzeFTA, FMEA, Root Causes, Test Means &
Variances, Cause & Effect, Pareto, Task Force,
Cycle Time, Reliability, Confirm Value
ImproveReduce Cycle Time, Improve Reliability,
Design of Experiments, Reduce Complexity
Management of Change, Project Management
ControlControl Charts, Audits, New Capability,Documentation, Share/Educate, Total Value
Define Scope, boundaries, expected resultsin balanced score-card areas, high level
process map, resources, time.
ProjectManagement
Personal, Team and Organizational Growth
Specific
Skills,
Tools,
and
Techniques
First the strategy of the organization is developed, then progress is made along the
two areas of process/system improvement and people development. Six Sigma PlusPlus
uses a project approach to make improvements in these critical areas.
Strategy, Define, Measure, Analyze, Improve and Control are the six basic stepsinvolved. There are Project Management considerations that need to be applied
when using theses basic steps. These skills are appropriate not only to Six Sigma
PlusPlusprojects but also to any kind of project work. In each step of the project there is
a need for the individuals, the team and the organization to add to their development
of interpersonal, versatility, leadership and relationship skills.
Within each phase of the DMAIC (see above slide) there are specific tools and
techniques that can be applied. Some have application in multiple areas and some
are very specific. The tools and techniques are much like the tools in a craftsmans
tool box, the best results come when you have learned how to use multiple tools and
have the judgement to know when each is best applied.
Depending upon the situation there is likely more than one tool that could be used.
The mark of a professional is to know which tool to use in which situation. Key is
to make the tools work for you, not you working for the tool.
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ProjectMana
gement
Personal,Team,
OrganizationGrowth
Tools
and
Tech
niq
ues
This a three dimensional representation of the areas involved in Six Sigma PlusPlus
projects.
Expertise in only one dimension produces a single line, while developing in twodimension produces a flat sheet.
It is only when all three dimensions are developed that the fullness ofSix Sigma
PlusPluspotential will be realized.
While the first projects may be rather small in both scope and impact. As you
become more proficient with the tools and techniques, improve in projects
management skills and grow as an individual, team and organization, the impactexpands dramatically.
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Six Sigma PlusPlus
Why Business Strategy World Class Performance
Where Customer Critical Criteria
What Defect Reduction
How Projects DMAIC, People Development, Tools
Who Black Belts, Green Belts, Team Members
When Usually 3-9 months per project
Six Sigma PlusPlus is more than simple process improvement. While the tools and
techniques of process improvement are vitally important, if these tools are not
supported by an underlying business strategy and the development of people the
gains will not be as big as they could be.
Six Sigma PlusPlus Focuses on Customer Critical Criteria and World Class
Performance with the process improvements, people development and a sound
business strategy to yield results.
Six Sigma PlusPlus will provide you with the tools and techniques necessary to support
your organizations business strategy. It will show you how to measure, analyze,
improve and control processes. You will gain knowledge of people dynamics,
including a better understanding of yourself, that is essential for the processimprovements to succeed.
Too many times there are attempts to focus on process improvement, or people
development, to the exclusion of the other. Success with these approaches is almost
always transitory. Long term sustained improvement requires both.
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Six Sigma PlusPlus
Comprehensive
system for achieving
and maximizing
business successes of
leadership and
performances.
Six Sigma PlusPlus isnt about theory. It is about actions towards sustainable, near
perfect, process improvements. Successes are created by the people, systems, skills
and culture for constant renewal of the organization towards desired business
results.
In your improvement project efforts, the difference between a success and failure
will often be determined by leadership and people skills found in ourSix Sigma
PlusPlus training.
Six Sigma PlusPlus can accelerate the development of interdependent collaboration
within an organization. It accelerates the rates of improvements.
Six Sigma PlusPlus is the vehicle used in executing an organizations strategic change,
providing a greater success in ability to carry out minor adjustments and major
shifts as dictated by the needs of your business.
Six Sigma PlusPlus enhances the organizations value and desire of internal and external
customer inputs and satisfactions.
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Six Sigma PlusPlus
Process
All processes in an
organization including
designing products,
services, measurements
of performance, support
systems, delivery and
customer improvement
systems.
Six Sigma PlusPluspriorities begin with an focused understanding of your Customers
Critical Criteria, expectations, satisfactions and values as they regard your
organization. Performances should then be measured against these customer criteria.
Customers should be viewed as being both internal, as well as external to the
organization.
Six Sigma PlusPlus requires management to be data and fact driven. Management must
clarify the measurements that are key to determining the success of the
organizations desired business results and performances.
Six Sigma PlusPlus is a process focused management and improvement system. The
process helps organizations to build competitive advantages and to deliver value to
their customers.
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Synergistic
Six Sigma PlusPlus shouldbe a synergistic,
collaborative, and customer
focused system that has no
organizational boundaries.
Six Sigma PlusPlus requires the organizations management teams to become
proactive versus reactive. Management should set clear goals and focus on
problem prevention versus fire fighting emergencies. Management should be asking
why do we do what we do versus just going along because thats the way its
been done in the past.
Six Sigma PlusPlus internal customers benefit greatly by gaining knowledge as to how
they might fit into the organizations big picture.
Internal customer stakeholders, should be able to recognize and measure the
interdependence of activities in all or part of a process.
In gaining and understanding of the end users needs, how work flows through an
organizations process or supply chain, the internal customers are better equipped to
meet the needs and Customer Critical Criteria of external customers, thus
preventing costly mistakes, failures or unwanted waste.
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Six Sigma Projects
Introducing changemeans to challenge the
old guard personal
and organizational
paradigms.
Six Sigma PlusPlusprojects are designed to improve, or to change, to successfully
achieve desired business results of the organization.
Introducing change means to challenge the old guard of both personal andorganizational paradigms. Paradigms are our personal beliefs about how things are
supposed to be. We as people often filter out and resist incoming data that does not
closely match our specific paradigms.
We as people, and organizations, get set in our ways, are comfortable, and thus most
suggested or required change makes us uncomfortable. As a result some of us will
resist making some or all of the needed changes. Once we have personal buy in to
the new change, we can begin the slow process of change. We say slow because,
those wanting the change to take place generally feel the rest of us arent movingtowards the change fast enough. Youve been asked to change and have asked
others in the past... How did you feel about their progress towards the desired
target?
The greater the belief in our paradigms, the more difficult will be the opportunity
for making needed change. Much resistance from personnel within the organization
is often the result, as change levels the playing field and some stakeholders feel
they will lose their personal or positional power.
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Improvement Projects
Map Components
1. Identify Core Processes andCustomers.
2. Define Customer
requirements.
3. Measure Current
Performance.
4. Prioritize, Analyze and
Implement your
Improvement Processes.
5. Expand and Integrate your
Improvement System.
Strategy
Processes
VisionPeople
Structure
RESULTS
Most products or services that do not change and evolve, will likely have limited
success and life in the market place. The auto industry, as example, has locked
themselves into a cycle of a new model every year. Frequently there are only
minor or cosmetic changes made to these new models. Ever have trouble identifying
one year model from the next of a particular vehicle?
Six Sigma PlusPlus teaches that redesign of Products and Services should be based on
the Measured Value from the Customers and Supplier capabilities. Done correctly,
the Redesigned Product and Service should do a better job of meeting and
exceeding Customer expectations than did the original product or service.
When Six Sigma PlusPlus is applied, the economic return on investment should
improve for the Business Unit involved. Better products with fewer defects, costreduction projects, better understanding of the Customer, improved work flow,
employee commitment, supplier involvement and reduced cycle times are but a few
of the contributing areas. Good redesign should reduce complexity, have fewer
defects, improve reliability, and offer the Customer functionality not in the original
product or service. When these objectives are met there is a direct cause and effect
relationship to improved margins and larger market share.
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Management Leadership
Strategy for theOrganization
Customer Focus
Champions in each
Business
6+ Project Leaders
(Black Belts)
TrainingAllowing only value
added projects
Monitor Process and
Results
The full benefit ofSix Sigma PlusPlus will not be realized without the active
leadership of the Senior Management which include:
Well defined, clearly communicated, strategy used in decision making.
Focus on the customer. While internal services and processes mayimprove efficiency and productivity, customers decide if you stay in
business or not.
Empowering Champions with the ability to access and communicate
with senior managers, and directing Black Belts.
Project leaders, experienced people trained in the Six Sigma PlusPlus
methodology to lead improvement efforts in the areas consistent with the
organizational strategy. Project selection for implementation may be the single most important
indicator of success. Management must maintain responsibility for the
success of the project just as they would for any other significant activity.
Six Sigma PlusPlusprojects should be reviewed by management on a regular
basis. Success, problems, issues, shared learning and of course results
should be part of these reviews.
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Map Business Process
1. Draw process boxes and name the boxes
2. Identify
output.
3. Identify
Customer
4. Identify Last
Step
6.Identify Intermediate Steps
5. Identify
Inputs
7. List sub steps
This simplified map of a business process should be done by those assigning a
project to the Six Sigma PlusPlus Black Belt.
If map is not provided, you should prepare it early on and have a review with theChampion and Process Managers to assure that there is agreement on the scope of
the project. This map can help provide a well defined and well scoped project.
Process Business Map Steps
1. Draw and label Process Boxes.
2. Identify Output.
3. Identify Customer.
4. Identify Last step.
5. Identify Inputs.
6. Identify Intermediate steps.
7. List Sub steps.
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MACRO Map
3
20
P1 P2 P3 P4 P5
Once the scope of a project is defined and the basic process map agreed upon, it is
time to identify the full detail. There may be many sub processes (more than just
the P1-P5) indicated here, required to obtain needed detail.
A large work space is needed to get all of the detail of the process defined. We
recommend that you use Post Its and a number of taped flip chart sheets or butcher
paper to make this MACRO map. Indicate where the sub processes begin and end.
It is frequently at the interface of processes where major problems occur.
One of the key things here is to make a physical representation of time.
You have to decide if the process is driven by work day time or calendar time. Ifwork day time, then a day has 8 hours not 24.
For example a 3 inches might represent a week or a day. What ever it is as you put
up Post Its, be sure that each activity is represented by the time it takes. If for
example there is an aging step that is seven days calendar time and you have
decided that 3inches represents a full day, on the map this aging step should be
21inches long(7X3). At the other end a one hour activity with this would be 0.125
long. (3/24=0.125).
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Balanced Score Card
Financial Customers
Growth
Learning
Six Sigma PlusPlus recommends that you consider measurements in at least the four
areas listed (see slide) for every project. One of the key management responsibilities
is to decide how some of these measures will be applied. If you do not have
guidelines from you Management, we encourage you to take the lead and propose
standard guidelines.
Organizations that have achieved great success, utilizing Six Sigma PlusPlus, have very
strong rules about tracking financial gains of their projects. Most require a direct
link to the bottom line profit before gains can be counted. One year is a common
time frame used to see if the improvements are real or transitory.
Some Examples
Labor savings--allowed only if headcount is reduced or an approved hire is
not made and the budget is reduced.
Space--leases must be canceled and the savings calculated on the money
not paid out. An alternate is to sub lease and the income less expenses is
counted.
Inventory reduction --only time value of the money tied up in inventory is
counted.
Yield improvement--measure the before and after uses and the difference is
counted. Budget should be reduced to reflect the improvement.
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Simplified Sigma
Conversion Table
Yield DPMO Sigma
30.9 % 690,000 169.2 308,000 2
93.3 66,800 3
99.94 6,210 4
99.98 230 5
99.9997 3.4 6
Sigma levels of performance are expressed in Defects Per Million Opportunities
or DPMO, which indicates how many errors would show up if an activity were
repeated a million times. Sigma levels are another way of communicating the same
information.
Six Sigma PlusPlus defines customer requirements clearly and thus measures can be
used to measure and compare very different processes throughout an organization
focusing on defects and defect opportunities.
After you clearly define a defect you can measure almost any type of business
activity or process. These measures must be applied across an organization with
established guidelines. Measures should not remain static. Customer
requirements change and so should your performances.
Process improvement should find targeted solutions so as to eliminate root causes
of a business performance problem. Our emphasis should be on finding andtargeting solutions to address the vital few factors that cause the problem.
A unique problem is presented for the Six Sigma Project Manager each time he or
she starts a new project... How do I write a well planned project mission statement
that is inspiring, clear, accurate, measurable and one that results in action?
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Unique Marketing Advantage
Once your customers have developed a low tolerance for defects, you have a unique
marketing advantage over your competitors.
This is true, provided you continue to focus on the Customer Critical Criteria andimprovement processes. In these areas mentioned, it is going to be very difficult for
a competitor to match the level of performance your customers have learned to
expect from your business organization.
Six Sigma PlusPlus focuses on the Customer Critical Criteria (the important variables)
that drive a successful redesign of a product or service. Understanding what the
voice of the customer is really saying, is of vital importance.
How do you do you get started?
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Loyal Customers
As the business results are achieved there should be an increase in
Customer Satisfaction with a Loyal Customer as the objective
True/False Quiz, Circle the Correct Answer.
T/F A customer the most important person in any business.
T/F Customers dependent upon us.
T/F We are dependent upon the Customer.
T/F A Customer is an interruption of our work.
T/F A customer is the sole purpose for our Work.
T/F A Customer does us a favor when he comes into our Business.
T/F We are doing the customer a favor by waiting on him.
T/F A Customer is an essential part of our business--not an outsider.
T/F A Customer is not just money in the cash register.
T/F A Customer is a human being with feelings and deserves to be
treated with respect.
T/F A Customer is a person who comes to us with his needs and
expectations and it is our job to fill those needs and expectations.
T/F A Customer deserves the most courteous attention we can give him.
T/F The Customer is the lifeblood of this and every business.
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Step Two Define
Define CustomerRequirements.
Objective
Outputs
Step 2. We should then Define our Customers Critical Criteria.
Objectives should be to
1. Establish standards for performance that is based on actual customers input,
so that process effectiveness and capability can be measured. This will
allow us to predict our customers satisfaction.
2. Develop or enhance systems and strategies to collect on-going Customer
input and data gathering.
3. Make the direct link between our key performance indicators and the
Customer Critical Criteria.
Outputs should result in
1. A clear and complete description of the factors that drive our customers
satisfaction for each output and process for our organization.
2. These should be tied to end products or services that make it work for our
customers.
3. Service requirements should describe describe how our organization
should interact with our customers.
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Step Three Measure
Measure Current
Performance.
Objectives
Outputs
Step 3. We should then Measure our Current Performance against our
Customers Critical Criteria and our key performance indicators.
Objectives should be to
1. Accurately evaluate each processs performance against definable
Customer Critical Criteria link to our key performance criteria.
2. Establish a system for measuring key outputs and services features we offer.
Outputs should result in
1. Benchmark Measurements that are the quantified evaluations of our current
or recent process performances.
2. Capability Measurements that are the assessments of our ability regarding
our current process or output to deliver on Customer Critical Criteria. These
would include Sigma scores for each process, thus providing for
comparison of very different processes across our organization.
3. Measurement Systems that are the new or enhanced methods and resources
to be used for on going measurements for our customer focused
performance standards.
4. On going measures of our key performance indicators.
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Step Four Analyze
Prioritize,and Analyze
Processes that deliver
Customer Critical
Criteria.
Objectives
Outputs
Step 4. We should then Prioritize and Analyze our Processes that deliver the
Customer Critical Criteria.
Objectives should be to
1. Identify our organizations highest potential improvement opportunities.
2. Develop process oriented options supported by factual analysis,
collaborative and creative thinking by our organizations employees.
3. Prioritize the different options for impact on the Customer Critical Criteria
and upon the other Balanced Score Card areas.
Outputs should result in1. Improvement priorities that are based on impact and feasibility regarding
our organization and its customers.
2. Process improvement solutions that target specific root causes to problems.
3. An understanding of how the various solutions impact all of the areas of
concern. This allows for a balanced approach that does not sub-optimize one
area and actually hurt the organization as a whole.
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Step Five Improve
Implement Improvement
Processes.
Objectives
Outputs
Step 5. We should then Implement our best option for the organization as a whole.
Objectives should be to
1. Effectively implement our organizations new solutions and processes.
2. We should also provide measurement proof of our sustainable gains.
Outputs should result in
1. New or redesigned improvement processes, activities and work flows
created to meet new demands, incorporate new technologies, or achieve
dramatic increases that focus on Speed, Accuracy or Cost .
2. Performance Improvements of our organizations desired business results as
shown by our key performance indicators.
3. Improvements for the organization as a whole.
4. Greater customer loyalty as we will be meeting specific Customer Critical
Criteria better than ever before.
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Step Six Control
Expand and Integratethe Performance
Improvement Systems.
Objectives
Outputs
Step 6. Finally we should Expand and Integrate our organizations
Performance Improvement Systems.
Objectives should be to
1. Establish control systems that assures the gains will not be lost.
2. Initiate on going business practices that drive improved performances and
ensure constant measurement, examination, and renewal of our
organizations products, services, processes and procedures.
Outputs should result in
1. Process Controls that measures and monitors the sustain performance
improvements our organization has gained.
2. Process Ownership & Management of our organizations cross functional
support processes, having input from our Customers, Markets, and
Internal Customers.
3. Response Plans to be used as the mechanisms to act. These are based on
key information so as to successfully adapt our strategies, products, services
and processes.
4. Improvement Culture that uses statistical tools as our organizations position
of continuous renewal as a part of our everyday business environment
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Six Essential Improvement
Themes
4. Proactive Management.
5. No Boundaries
Collaboration.
6. Drive for World Class
Performance and
Perfection.
4. Proactive management involves habits and practices that anticipate
problems and changes, applying facts and data, that questions assumptions
about your organizations goals and how you do things.
5. No Boundaries collaboration requires cooperation between internal
customers, external customers, suppliers, and other stakeholder partners.
6. World Class Performance and Perfection requires a tolerance for failures,
giving internal customers, (stakeholders) in the organization, the freedom to
test new approaches, even while managing risks and learning from mistakes.
Successfully embracing these essential improvement themes will lead to raising the
performance and customer satisfaction bars for your organization.
Gaining continuous and incremental improvements will put a firm into a better
position to successfully achieve the organizations desired business results of gaining
and maintaining Loyal Customers, Improving Market Share and Increasing
Profitability.
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Elements
Structure
Process
People
Vision
Strategy
Implementing Six Sigma requires taking a new and closer look at many of the
essential parts of your organization.
Six Sigma implementation must have some structure within your organization, itcannot be a bolt on activity that is managed outside of the normal business. The
business units of your organization should create Champions and Blackbelts to
insure successful achievement of your organizations desired business results.
Senior management of the business units must maintain responsibility for the
success ofSix Sigma. Champions must have ready access to the senior management
and be knowledgeable of the activities of the Blackbelts in their business.
Six Sigmaprojects should not be started until the Blackbelt and Champion agree
the scope and parameters of the project are adequately defined. It is then up to the
Blackbelt to lead the project to its completion.
People development is more than teaching tools and techniques. Leadership and
team building skills are essential for the Blackbelts. Understanding behaviors and
motivation are equally important development areas.
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Visions Values
Strategic Direction
Competitors
Customer
Satisfaction
Business
Results
MeasureValue
Re-Design
Products & Services
Leadership
Suppliers
Employee Development
Involvement
Products Services
Work Processes
Distribution
Business SystemInformation and Analysis
Each component of yourBusiness System is an integrating factor on each and every
other component within the system.
First evaluate your business system as a whole, then move to exploration of thecomponents. Linkage between each component is as important as the component
itself.
Complexity can overwhelm and undermine your efforts. Seeing the patterns behind
the events, can lend to simplification and understanding. This, in turn, can allow
you toprovide needed leverage for your actions aimed at improvement changes.
This should also help you to identify limits to your success or growth problems
within your organization.
Without complete, appropriate information and analysis of the entire system, you
set yourself up for failure. You should explore the discipline of yourSystems
thinking, viewing your business world as a whole, a framework of patterns and
inter-relationships, in order to successful achieve your organizations desired
business results.
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Success with Six Sigma
Sustained Effort
Strategy
Leadership
People Development
Systems Improvement
Project Work
Training and
Development
The best Six Sigma Plus implementation strategy would be to opt for the start up
and training of the organizations Senior Management, Champions, Black Belts,
Green Belts and Internal Customers.
Six Sigma Plus starts at the very top of the organization with management,requiring their active support and participation in the process. Senior Managements
duties include project, people selection, project reviews, rewards, and recognition.
Six Sigma Plus success results in the completion of various projects. Projects are
lead by a Project Manager (Black Belt) that understands how to apply needed tools
and techniques at various stages of the project. If change is not welcome in your
organization, Six Sigma will be of little value.
People development activities must occur through out all of your organization. Six
Sigma Plus tools and techniques should be taught to internal customers, lending to
their collaboration skills for successfully achieving the organizations desiredbusiness results.
Leadership, understanding behavior, team skills, and utilizing Six Sigma Plus tools
are essential ingredients for all project stakeholders for achieving success of your
organizations Six Sigma Plus project.
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Blinding Obvious
Low Hanging Fruit
Bulk of Opportunities
If your organization is considering implementing Six Sigma Plus, you likely have
already taken care of your organizations blinding obvious issues and problems.
These likely will not require any special talent to find or address. Not to say that
they are all easy to resolve.
This low hanging fruit can be addressed with very basic problem solving tools
and techniques.
In most organizations, the bulk of the improvement opportunities are going to be
more difficult to resolve successfully. These improvement opportunities maybe a
little harder to reach and will likely require more specialized training, tools, and
techniques such as those found in Six Sigma Plus training.
It is these areas of improvement opportunities where Six Sigma Plus will return
huge benefits to your organizations and provide the ability to successfully achieve
your desired business results.
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Synergy
No magic bullets.
Linear approaches yieldadditive improvements.
Collaborative and synergisticapproaches yieldexponential improvements.
Continuous learning isrequired to advance.
As you start preparing forSix Sigma Plus,Plus,please realize that there are no magic
bullets. This effort is applied in a planned and intelligent fashion. As projects are
completed, one at a time, there is an additive effect. Improvements will tend to be
linear with each project that is completed. As more projects are completed the
benefits grow and the synergy of multiple improvements begins to yield more than
the sum of the individual projects.
When attempting to complete your first Six Sigma PlusPlusproject you may find the
process is somewhat slow. Take heart as with any new set of skills you will
improve with practice. Exponential growth is possible as the synergy between
projects develop and the project pace is increased. This will happen as
Management, Champions, Black Belts, Green Belts and the organization as a
whole gains more project experience and success.
A truly successful Six Sigma PlusPlusproject effort shares the success and challenges.
This not only gives encouragement to others, it also allows people with success
stories to receive some of the recognition they deserve. Every project is a learning
experience.
Leadership, Champions, Black Belts, Green Belts, and internal customer
stakeholders must each continue to learn and grow with the Six Sigma PlusPlusprocess
in order to continue the successful achievement of the organizations desired
business results.
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Introductory Module
Final Quiz
1. List the major components to
achieving World
Class performance.
2. Describe the meaning of Six
Sigma.
3. List key elements in an
organizational improvement
strategy.
4. List motivations for an
organization to change.
5. List the four steps found in
every Six Sigma project
once it is defined.
Complete the following to strengthen your personal learning process and
growth:
Complete the above quiz. Compare your answers to objective benchmarkquestions you answered at the start of this module. Did you significantly
improve?
We suggest that you correct answers to quiz questions missed.
What are the key learning items you personally gained from this module?
List and Explain how this training will impact your personal or business
life.
Thank you for participating in this Six Sigma PlusPlus Free Introductory Module.
We hope you will join the many others who will begin theirSix Sigma PlusPlus Black
Belt Training using our new, faster and cheaper, distance learning process.
Visit our web site often to see our latest training releases. Please tell your friends to
join you in our chat groups, to drop us a question, sign up for our e-mailed
newsletter, and about our growing training program offerings.
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