Even for Six Sigma deployments that experience great early success, momentum can stall once a program matures. If not addressed, this pattern can sap program ROI, Belt morale, and ultimately executive support. This white paper discusses how Deployment Management - the discipline of applying the rigorous, data-driven approaches of Six Sigma to the processes involved in running a Six Sigma program - can reinvigorate ROI and ensure deployment team engagement.
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http://info.powersteeringsoftware.com/Apply-Six-Sigma-to-Six-Sigma-Whitepaper.html?description=6s-to-6s-wp-slideshare&source=slideshare
1. IMPROVING SIX SIGMA PROGRAM ROI
WITH DEPLOYMENT MANAGEMENT
THOUGHT LEADERSHIP WHITE PAPER
2. Introduction
Regardless of the size of the organization, when a Six Sigma program reaches a
certain maturity it runs the risk of losing momentum. Once the low hanging fruit
has been plucked and the obvious high-reward endeavors tackled, subsequent
projects typically generate less financial benefit. At the same time, administrative
burden increases as the number of Belts and projects grows and the use of Six
Sigma expands throughout the organization. Belts require more time to uncover
and scope projects, while aggregating and validating program data becomes more
of a chore. If not addressed, this pattern can sap program ROI, Belt morale, and
ultimately leadership support for Six Sigma.
One way to break free of this cycle is through Deployment Management, the
discipline of applying the rigorous, data-driven approaches of Six Sigma to the
operations of a Six Sigma program. It begins with a simple realization: the practice
of running Six Sigma is itself made up of processes that can be analyzed, refined
and optimized. While each deployment is different, Figure 1 outlines some of the
common processes used to manage Six Sigma practitioners (Belts) and projects.
Figure 1: Typical Six Sigma Program Deployment Processes
The Six Sigma methodology theorizes that to generate consistent results, a control
plan is necessary for each critical activity. Unfortunately, many practitioners get so
caught up in the execution of individual projects that they forget to “eat their own
cooking.” According to the Lean Six Sigma Benchmark Report (September 2006,
Aberdeen Group):
“…industry is missing out on billions of dollars in potential savings, sales, and
profits each year through ineffective application of Six Sigma tools and
methodologies.”
By institutionalizing robust deployment processes, leading organizations can
capture their share of this billion dollar opportunity.
Improving Six Sigma Program ROI With Deployment Management 2
3. Putting Deployment Management Into Practice
Moving from the theoretical to the concrete, we’ll conclude with real-world case
examples for each of the key processes previously described. By including baseline
assumptions for a Six Sigma program of moderate size, we can model the return of
a modest Deployment Management effort.
First, we’ll define the scale of our Six Sigma example program:
100 Black Belts, 5 Master Black Belts
1.5 projects per year per Black Belt (for 150 projects total)
$150,000 net benefit per project
Master Black Belts cost $75/hour in salary and benefits
Now we’ll examine the potential benefit of adopting the following demonstrated
Deployment Management practices:
While the full advantage of Deployment Management is derived from the
aggregate effect of tackling all critical deployment processes with Six Sigma
discipline, the previous examples demonstrate that significant benefit is achievable
even by addressing just a few narrow areas. Any Six Sigma deployment leaders
with more than a few dozen Belts should consider adopting a systematic
Deployment Management approach to reinvigorate a languishing program, turn
modest program results into stellar returns and ensure ongoing executive support
and engagement.
Read the full white paper now.
Improving Six Sigma Program ROI With Deployment Management 3
4. PowerSteering Software is the leader in business-driven project &
portfolio management (PPM) solutions for managing IT
Governance, New Product Development, Performance
Improvement, and other Business PMO initiatives. Its easy-to-use
software provides executives at BayCare, Johnson Controls,
Merck, PolyOne, Shaw Industries, UK National Health Service, US
Department of Defense, and over 140 other customers with
executive visibility, strategy alignment, and team productivity to
drive strategy and accelerate results across the organization.
PowerSteering was rated “Strong Positive” in the "MarketScope
for Project and Portfolio Management Applications" published
by Gartner, Inc.