SIX SIGMA INFRASTRUCTURE DESIGN

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  • 1. SIX SIGMA INFRASTRUCTURE DESIGN & IMPLEMENTATION Jackie Cazar 6/23/04 1
  • 2. Agenda Six Sigma Success Equation Deployment Challenges Infrastructure Design & Implementation Infrastructure Team & Function Design Information Technology Finance Human Resources Results, Benefits, Risks 2
  • 3. Six Sigma Success Equation The 3R’s of Success ƒ Y = (RTalent, RProjects, RSupport) Right TALENT: Right Black Belts, Green Belts, Yellow Belts & Master Black Belts. Right PROJECTS: Well-defined projects with holistic approach focusing on the bottom line. Proactive Project Pipeline Strategy. Right SUPPORT: Passionate Champions, Committed Senior Leaders (CEO), Highly Analytical Data Owners, Excellent Subject Matter Experts & Process Owners, Right Financial Reps, Robust Financial Management & Reporting System, Excellent HR Support System, Good/Available Data, Correct Metrics & Validated Measurement Systems, Right Vendor & Customized Curriculum. 3
  • 4. Six Sigma Deployment Challenges Best-In-Class Common-Case Worst-Case D M A I C Cycle time Training Starts Q1 Q2 Q3 Best-In-Class Common-Case Worst-Case Well-defined Projects with Not all Black Belts have a Poorly-defined Projects ICOPQ signed off by Finance well-define project or are Poorly selected Black 100% Dedicated. Right Black Belts 100% Belts/Champions Financial/Customer Benefit Dedicated hard to identify. Little to No Financial/Customer Benefit Strong Support System in Weak Champions & Support Place System. Belt/Champion Attrition 4
  • 5. Infrastructure Design Assumptions: Operational & Readiness Level Assessment CEO Ready? Middle Management Ready? Data/Metrics/Process Maturity Not Ready? Internal Talent Ready? Deployment Model Selection Build Knowledge from within Centralized vs. Decentralized Deployment Model Speed/Quality 1% Rule vs. End-to-End Approach 5
  • 6. Infrastructure Design Go/No Go 4/1 5/1 6/1 DECISION 8/31 Information Systems Roles Data Data Assessment MINITAB & Defined Assessment Project Selection Visio/iGrafx ready Finance Roles Finance Rep Financial Mgmt. Initial Financial Defined on board & Reporting Forecast Process ready (ICOPQ) ready CTQ’s CEO Identification Strategy Go/No Go Champions on Champions Roles Communication board Defined Strategy Exe/Champion Well defined Black Belt training starts training begins Projects SIX SIGMA OFFICIAL Six Sigma Vendor LAUNCH selection begins Six Sigma Go/No Go Office Roles Kick off Finance Project Pipeline Black Belts Defined Training ready Strategy begins Green Belt Process Mapping training ready & Metrics CTQ Manager on board RISK ASSESSMENT Change Mgt. Strategy Master Black Belt on board COMPLETED Human Green Belts, Data Resources Owners on board ON-TARGET Roles Staffing Defined begins Black Belt SOME ISSUES selection begins SERIOUS ISSUES Compensation Career Performance Strategy Development Mgmt.Process © 2004 End-to-End Consulting, LLC. All rights reserved. 6
  • 7. Information Systems Critical Path Go/No Go 4/1 5/1 6/1 DECISION 8/31 Information Systems Roles Data Data Assessment MINITAB & Defined Assessment Project Selection Visio/iGrafx ready CTQ’s Identification Strategy Go/No Go Champions on Champions board Data Assessment Exe/Champion Well defined Black Belt training starts Where’re the Data? training begins Projects SIX SIGMA OFFICIAL LAUNCH Are the Data Available? Project Pipeline Go/No Go Black Belts Strategy begins When? Cost? Who are the Data Owners? © 2004 End-to-End Consulting, LLC. All rights reserved. 7
  • 8. Finance Critical Path Go/No Go 4/1 5/1 6/1 DECISION 8/31 Finance Roles Finance Rep Financial Mgmt. Initial Financial Defined on board & Reporting Forecast Process ready (ICOPQ) ready CTQ’s Identification Strategy Go/No Go Champions on Champions board Exe/Champion Well defined Black Belt training starts training begins Projects SIX SIGMA OFFICIAL Six Sigma Vendor LAUNCH selection begins Go/No Go Finance Black Belts Training ready Project Pipeline Strategy begins Financial Validation, Revenue/Cost Drivers? Financial Goal Setting + Audit © 2004 End-to-End Consulting, LLC. All rights reserved. 8
  • 9. Finance Role for Six Sigma PROJECT SELECTION Partner with Senior Leaders and Champions to identify drivers PROCESS of Revenue and Operating Cost. Revenue and Operating Cost drivers. PROJECT PIPELINE Partner with Champions to validate the Project ICOPQ (80% CL). Report on Project Pipeline Financial Forecast DEFINE MEASURE Sign-off on ICOPQ on Project Charter (80% CL) Review Project periodically to validate: ANALYZE • COPQ (85% CL) IMPROVE • Pre-Implementation Cost Benefit Analysis (90% CL) CONTROL • Post-Implementation Cost Benefit Analysis (95% CL) Sign-off on Project Completion once the Project is officially PROJECT COMPLETION transitioned back to the Process Owner (Control Plan) and the Project Primary metric is under Control (Control Charts) PROJECT REALIZATION Book HARD Six Sigma Financial Savings holistically throughout the company for 12 months 9
  • 10. Your & CEO’s Critical Path Go/No Go 4/1 5/1 6/1 DECISION 8/31 Strategy Critical: CTQ/CTC Champion Selection Project Pipeline Creation & Management CTQ’s CEO Identification Strategy Go/No Go Champions on Champions Roles Communication board Defined Strategy Exe/Champion Well defined Black Belt training starts training begins Projects SIX SIGMA OFFICIAL Six Sigma Vendor LAUNCH selection begins Six Sigma Go/No Go Office Roles Kick off Finance Project Pipeline Black Belts Defined Training ready Strategy begins Process Mapping & Metrics CTQ Manager on board Change Mgt. Strategy Master Black Belt on board © 2004 End-to-End Consulting, LLC. All rights reserved. 10
  • 11. HR Critical Path Go/No Go 4/1 5/1 6/1 DECISION 8/31 Do not Underestimate the Power of HR CTQ’s Identification Strategy Go/No Go Champions on Champions Communication board Strategy Well defined Black Belt training starts Projects SIX SIGMA OFFICIAL LAUNCH Go/No Go Black Belts Kick off Project Pipeline Strategy begins Green Belt Process Mapping training ready & Metrics CTQ Manager on board Change Mgt. Strategy Master Black Belt on board Human Green Belts, Data Resources Owners on board Roles Staffing Defined begins Black Belt selection begins Compensation Career Performance Strategy Development Mgmt.Process © 2004 End-to-End Consulting, LLC. All rights reserved. 11
  • 12. Critical HR Success Factors “Put the Right People on the Bus, then Drive the Bus” - Jim Collins Low Attrition: Everyone in the company focuses on selecting new projects, growing the business & enhancing the customer experience. Rather than dealing with employee attrition & dissatisfaction. Future Leaders: Clear development & transition plan from Middle/Line Managers to Leadership Roles. These Leaders will develop new Leaders - New Six Sigma Mindset. Overcome Poor Support System: Best Black Belts make up for poor Champion selection and Lack of Support System. Shorter Cycle Time: Projects & Learning Curve 12
  • 13. Infrastructure Design Capacity Planning % Time Resources Required Allocation 5 10 20 40 Black Belts (full-time) 100% 0 5 5 10 Green Belts (part-time) 25% 5 5 15 30 Deployment Leader 100% 1 1 1 1 Champions 10% 3 5 10 20 Master Black Belts 100% 0 1 2 2 Financial Reps 10% 3 3 4 5 Yellow Belts 5% 0 20 40 80 Process Owners 5% 5 10 20 40 Team Members 5% 50 100 200 400 HR Representative 10% 0 0 1 1 Project Workshops N/A 1 2 4 8 Projects in Pipeline N/A 0 20 40 80 “Failing to Plan is Planning to Fail” - John Wooden 13
  • 14. Benefits & Risks Spending Time on Providing your Company with Direction Minimizes the Opportunity to Fail and Reduces the Deployment Cost The ability to deploy Six Sigma effectively depends on making decisions that are critical to your Customers and the heath of your businesses. It forces us to think strategically and critically on “where” to allocate our limited resources to fix the most critical issues. It forces us to make Go/No Go decisions and think about what is critical vs. what is not. 14
  • 15. Q&A 15