The Top 10 Challenges Facing the Deployment of

Six Sigma Initiatives Successfully Implementing Six Sigma in Chemicals and

Pharmaceuticals

Dr. Fadel Hamed

ASQ Certified SSBB, CQE

Project Manager, Amgen

Adjunct Professor, Manufacturing Systems and

Engineering Management, California State University

Northridge

Presentation Elements:

1. The Shortest Overview of Six Sigma2. The top 10 Challenges

For the 1000th Time, What is Six Sigma Again???

Eliminate Defects

Reduce Variation

Save Money

Management Philosophy

3.4 Defects per 3.4 Defects per million opportunitymillion opportunity

Project Project ManagementManagement

DMAICDMAIC

Data DrivenData DrivenProblem SolvingProblem Solving

Business Process Focus

How do we start with Six Sigma?

We start by shifting our thinking to Process!

Vision Vision StrategyStrategy

Goal SettingGoal Setting

MetricsMetrics

Product FocusProduct FocusProcess FocusProcess Focus

Customer RequirementsCustomer Requirements

“We are going to shift the paradigm from fixing products to fixing and developing processes. So that they produce nothing but perfection or close to it!”

Jack Welch

An Early Attempt at using Six Sigma without Process thinking…

Very Successful Case Studies*

• Committed leadership

• Use of top talent

• Supporting infrastructure• Formal project selection process

• Formal project review process

• Dedicated resources

• Financial system integration

Less Successful Case Studies*

• Supportive leadership

• Use of whoever was available

• No Supporting infrastructure• No formal project selection process

• No formal project review process

• Part time resources

• Not integrated with financial system

Experts’ Opinion on Successful vs. Unsuccessful Six Sigma Deployment

* Taken from Leading Six Sigma: Snee and Hoerl

Reasons for not being successful with Six

Sigma have little to do with DMAIC…

… It Has Everything to do with Leadership &

Business Process Management

Fadel’s Opinion on Successful vs. Unsuccessful Six Sigma Deployment

Are There Only 10 Challenges Facing the Deployment of Six Sigma Initiatives?

Obviously Not…

The following challenges are based on Fadel’s personal experience with Six Sigma.

Top 10 reasons why Six Sigma Initiatives Fail

1. Selected Six Sigma projects are not connected to the

corporation’s goals

2. The corporation is deploying Six Sigma for the wrong

reasons

3. Six Sigma project goals are not aligned with Champion’s

Goals

4. A bottom-up rather than top-down project selection

methodology

5. No clear financial benefits

6. The corporation does not have clear processes to support

customers

7. Poor or wrong Metrics

8. Projects has ineffective charter

9. Solution is obvious

10. Focusing on output measures

Str

ateg

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acti

cal

Reason # 1 Selected Six Sigma project are not connected to the corporation’s goals

Six Sigma Projects and Corporation’s Goals

Identify, Prioritize & Charter New Improvement Projects

Collect Data & Evaluate Performance. Identify Process

Constraints

ID Effectiveness and Efficiency Metrics for the Process Outputs.

Create Dashboard

ID Key Core, Sub & Enabling Process & Create High Level Maps

Corporation’s High Level Strategic Goals

Identify and map the business processes that customers care about, define metrics, goals,

identify opportunity and improve!

Reason # 2 The corporation is deploying Six Sigma for the wrong reasons

Wrong Reasons to Deploy Six Sigma

• Six sigma methodology is being used to save a company in strategic distress

• The company is in financial trouble

• Six sigma is being used because company’s competitors are deploying six sigma

• Executive leadership wishes to impress shareholders with six sigma language

• Why not us…

Reason # 3 Six Sigma project goals are not aligned with Champion’s Goals

Role of Champion in Six Sigma Projects

• Executive Champion / Champion

– Recognizes and defines the project

– Charter and sponsors the project

– Selects the Black Belt

– Arrange resources for the project

– Removes roadblocks to project success

– Monitors project’s budget

– Ultimately responsible for project’s financial gain

– Actively participates in gate reviews & approval processes

So why is the champion so important?

• Champion’s success in the organization should partially depend on the project’s success

• Probability of success drops dramatically when black belt has to continuously pull champion into project

• Without an involved sponsor, any project regardless of whether it is Six Sigma or not, would most likely fail to deliver meaningful results

• When the project goals are not in line with champion’s goals, this leads to bottom-up rather than top-down project selection methodology (Reason # 4)

Reason # 4 A bottom-up rather than top-down project selection methodology

What is Top-Down Project Selection Methodology?

Strategic Goals / Metrics

Opportunities to reach the

goals

Opportunities to reach the

goalsStrategic / Proactive

Problems, Defects, Corrective Actions, Preventive Actions

Issues needing attention

Issues needing attention

Issue Driven/ Reactive

Strategic Goals / Metrics

Opportunities to reach the

goals

Opportunities to reach the

goalsStrategic / Proactive

Problems, Defects, Corrective Actions, Preventive Actions

Issues needing attention

Issues needing attention

Issue Driven/ Reactive

Best Scenario for Six Sigma

Not Ideal for Six Sigma

Id Core sub-processes

Id Metric and how to measure the output

Id next sub level process

YES

Use SIPOC to MAP the “Constraint” Sub-

Process

Identify causal Metrics and enabling processes

OutputsMeasurable?

NO

ID Key Core, Sub & Enabling Process & Create High Level

Maps

Six Sigma Projects are Identified and Selected

Six Sigma Project Selection

Reason # 5 No clear financial benefits

No Clear Financial Benefits…

• As stated earlier, to avoid failure, the goal of a six sigma project should be connected to the corporation’s goals

• As stated by many experts, the goal of (for-profit) corporation’s is to make money

• No money, no strategic benefits, no Six Sigma

Show me the Money!

Mr. CEO

Reason # 6 The corporation does not have clear processes to support customers

Why Focus on Customer

• Creates a process focus

• Accrues many benefits (Defect Reduction) from aligning a process with customers

S I P O C

Suppliers Inputs Outputs CustomersProcess

Traditional Flow

Six Sigma Approach

Customer is the King!

Fin

ance

& A

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Pro

du

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evel

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tLeadership

Strategy

Conventional Organizational Structure Hierarchical Control, Vertical Role Clarification, Functional , Large

FunctionsFunctions

Most organizations today are Most organizations today are organized and measured by organized and measured by department and member department and member contributions to “functions”contributions to “functions”

Executive leaders may operate Executive leaders may operate as a team but are focused as a team but are focused individually, on the individually, on the management of functionsmanagement of functions

Strategic priorities are Strategic priorities are translated to functional goals translated to functional goals and objectivesand objectives

Improvements are prioritized Improvements are prioritized and addressed within and addressed within department processes and department processes and competenciescompetencies

Improvement projects are then Improvement projects are then sold to upper managementsold to upper management

Fin

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Leadership Strategy

Customer-Driven Organizations Speed, Functional Integration and Line-of-Sight to Customer

FunctionsFunctions

Products and services for Products and services for customers are not produced customers are not produced by functions, but by by functions, but by processes which tend to processes which tend to cross functional linescross functional lines

Some of these processes tend Some of these processes tend to be the way the customers to be the way the customers identify with the companyidentify with the company

Functions are (or should be) Functions are (or should be) the residence and building the residence and building place for competenciesplace for competencies

Process capabilities are the Process capabilities are the key leverage points in order to key leverage points in order to achieve strategy (the desired achieve strategy (the desired state of organization)state of organization)

Measurement focuses Measurement focuses process efficacyprocess efficacy

ProcessesC

usto

mers

Cu

stom

ers

FunctionsFunctions

Cu

stom

ersC

usto

mers

Order Generation

Acquisition

Customer Service

Drug Discovery

Order Fulfillment

Common Core Business Processes

Reason # 7Poor or wrong Metrics

How do we identify metrics to evaluate or judge our processes?

GoodCustomerService

Knowledgeable reps

Answers given by reps are correctReps can answer questions asked by customer without further research Researched information returned quickly

Friendly reps Customer greeted by name

Customer not interrupted

Short wait Time on hold Customer transferred immediately to the person who can help them

Need Drivers CTQs

General Specific

Hard to measure Easy to measure

GoodCustomerService

Knowledgeable reps

Answers given by reps are correctReps can answer questions asked by customer without further research Researched information returned quickly

Friendly reps Customer greeted by name

Customer not interrupted

Short wait Time on hold Customer transferred immediately to the person who can help them

Need Drivers CTQs

General Specific

Hard to measure Easy to measure

Reason # 8Project has ineffective charter

How do we Create an Effective Project Charter

We develop charters to ensure:

Business results, process, and resources are SMART:

SPECIFIC business objectives are documented MEASUREABLE and quantified definition of success ACHEIVABLE scope with a documented plan RESOURCE-LIMITED with budget and team clearly

defined, communicated, and agreed upon TIME-LIMITED with a project plan

Having a well defined project charter will reducescope creep, rework, wasted work and frustration

Reason # 9 Solution is obvious

What Should you do when the Solution is Obvious?

Q: The Solution is Obvious

A: Just Do It

Reason # 10Focusing on output measures

X or Y?

Historically the Y, … with Six Sigma the Xs

Process

InputX

OutputY

X

X

X

Process

InputX

OutputY

X

X

X

Why X?

Y = f(x1, x2, x3, x4,…xn)

Focusing on Output measures isLike looking in a rear view mirror, You can only see were you have been.

“To improve is to change. To be perfect is to change often.”

-Winston Churchill

Some Final Thoughts…

Questions???

Hope this Presentation Helped in Strengthen your Faith in Six Sigma

Six SigmaSkeptics

Six SigmaSkeptics

Sources

• The Six Sigma Revolution, George Eckes, c. 2001, John

Wiley & Sons, New York.

• Leading Six Sigma, Ronald D. Snee & Roger W. Hoerl,

c. 2003, Pearson Education, Inc.

• ASQ

• LIFE and a lot of mistakes…