six sigma overview and change management pitfalls
TRANSCRIPT
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SIX SIGMA OVERVIEW AND CHANGE MANAGEMENT
PITFALLS
Robert Johnson, MBA, CSSBB, CQMgr, PMPVice-Chairman – Section 1302American Society for Quality
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SIX SIGMA: NOT JUST A NEW NAME
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WHAT IS SIX SIGMA• What it is not:
– Secret Society, Slogan, or Cliché– Just a statistical term for variation
• GE Definition:– It is a highly disciplined process that helps us
focus on developing and delivering near perfect products and services
– Changed the DNA of GE - it is now the way they work in everything they do and design
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WHAT IS SIX SIGMAGE KEY CONCEPTS
• Disciplined• Data-driven approach• Methodology for Eliminating Defects• Every Process, Product and Service• Sub-Methodologies: DMAIC and DMADV• Green Belts, Black Belts, Master Black
Belts
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WHY SIX SIGMA
• Savings Examples– AlliedSignal: $800M over 2 Years– Motorola: $13B over 10 Years– General Electric: $8-12B over 5 Years
• Customers Feel the Variance, Not the Mean• 99.9% Quality (3 Sigma, is no longer good
enough to delight the customer)
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WHY SIX SIGMA
• At 99.9% Quality There Would Be:– 20,000 Wrong Drug Prescriptions/Year– Unsafe Drinking Water Almost 1 Hour a Month– 25,000 Lost or Incorrectly Delivered Articles of
Mail Every Hour– Over 9,000 Wrong Felony Convictions/Year – Two Short/Long Landings at O’Hare Each Day
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WHY SIX SIGMA• More Sensitive than Percentage• Cost of Poor Quality Goes Down
Percent DPMO Sigma COPQ69.1000% 308,537 2.0 30-40%93.3000% 66,807 3.0 20-30%99.4000% 6,210 4.0 15-20%99.9770% 233 5.0 10-15%99.9997% 3.4 6.0 <10%
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TQM VS. SIX SIGMA• TQM• Department in Org and
Counter to Production• Focus is on Quality• Quality is Good• Quality Career Path• Technical Personnel
Develop Goals
• Six Sigma• Cross-Functional Team
Working Together• Focus on Strategic Goals• Creates Tangible Benefit• Stepping Stone to Move• CEO’s and Executive
Management Goals
Adapted from Article in Quality Digest/Sep 2001
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SIX SIGMA PROCESS
• Senior Leadership Commitment • Define Roles (EMT - Process Owners)• Project Charter and Selection Process• Rollout Six Sigma Awareness• Train Green and Black Belts• Do Six Sigma Projects (DMAIC/DMADV)
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SIX SIGMA PROCESSES
• Improve Existing Process
• DMAIC• D - Define• M - Measure• A - Analysis• I - Improve• C - Control
• Design New/Redesign Existing Process
• DMADV• D - Define• M - Measure• A - Analysis• D - Design• V - Verify
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CHANGE MANAGEMENT PITFALLS
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SILVER BULLET
• Fix All the Problems in One Single Shot
• Easier Moving From 2 Sigma to 3 Sigma
• Further Improvements Get Harder
• Small Gains that Add Up over Time
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ARE WE THERE YET?
• Six Sigma in Two Months
• This Methodology is a Failure
• Long and Dedicated Process
• Hershey & Whirlpool ERP Failures
How Much Further
How Many More Miles Don’t Ask Me
Again!!!!
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ME TOO!! ME TOO!!
• EMT Project Selection and Other Mgt Levels Jump on Board
• I have a Project: Let’s call it Cix Cigma
• Resource Allocation• Focus on Top
Business Priorities
I Want to Play Too!
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IT DOES NOT COMPUTE!
• Critical IT Resources• Resource Constraint• Other Projects,
Upgrades and Enhancements in Competition for IT
• Balancing Act or Resistance to Change
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Cart Before the Horse
• Excited to get Going• Teams get Going
Before Training• Teams go Without
Adequate Resources• Risk of Early Failures• Hard to Recover From
Cultural Bias
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BITE OFF MORE THAN YOU CAN CHEW!
• Urge to Create Many Six Sigma Teams
• Resource Allocation• Quality Circles/QIT
All Over again• Lots of Activity, with
Little Results• Dedicated Resources
or No New Teams
Umm, num, ummnum,mum,umm
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NOT ON MY NICKEL
• Require Resources Outside of Span of Control
• Assign Resources You Can Most Afford
• GE Assigns Best Resources
• Agreement Between Management
That’s Mine Nickel and You Can’tHave It. Na Na A Boo Boo!
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PILE THE PLATE TO OVERFLOWING
• Add Six Sigma Project to Plate Without Even the Parsley Removed
• Affect Morale of Go-Getters Can’t Juggle That Much
• Dedicate the Best Resources, but Resource Level the Work
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MORE THAN A MEASURE• 3.4 Defects pre
Million Opportunities and That’s All Folks
• Misunderstand the Whole Methodology
• Need to Focus on Strategic Objectives
• Need Effective Comm and Training About the Initiative
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JUST ALREADY IMPROVE (AI)
• Skip the Define, Measure and Analyze.
• We Can Save Time -Just Jump Straight to Improve in DMAIC
• Band-Aid Fix• Need the First Part to
Get to Root Cause
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TOO MEASURE OR NOT TO MEASURE
• That is the Question?• Critical to Quality
measures that translate the VOC into VOP
• 100 Opportunities for Defects or only one
• Right Measures and Balance of How Much
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QUALITY PROGRAM DU JOUR
• TQM, QIT, Quality Circles, SPC, Deming, Duran, Zero Defects
• Learn the Buzz Words• This Program Shall
Too Pass Into the Void• Need Buy-in at All
Levels/Commitment for the long term
The Soup TodayIs TQM. Tomorrowit will be Six Sigma.
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CLARIFICATION
QUESTIONS
INSIGHTS