Six Sigma/ Lean Deployment Process


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  • P502-6C07 1460 Maria Lane • Suite 400 Walnut creek, california 94596 800/699-6220 925/975-0500 Fax 925/975-0501 e-mail [email_address] Copyright © 2002, Pivotal Resources, Inc. Reproduction or other use of this material prohibited without written permission of Pivotal Resources, Inc.
  • P502-6C07 If we were preparing a Process Map, then our “as is” process would show us that we have some opportunities with respect to a standardized or systematic approach to project selection and prioritization…we really have many processes…and my anecdotal information tells me that we are selecting projects many projects based on reactionary issues, rather than strategic issues….so we are really just hitting the tip of iceberg in terms of our project potential The only way we can improve upon this current state is to ensure that leaders are involved, supporting, and utilizing a systematic process.
  • Six Sigma/ Lean Deployment Process

    1. 1. Six Sigma/Lean Deployment Process October 2005 Paul Sandell Vice President/Fulfillment Process Manager - MBB
    2. 2. Agenda <ul><li>Wells Fargo Consumer Credit Group – Overview </li></ul><ul><li>Elements of a Six Sigma Deployment </li></ul><ul><li>Deployment Effectiveness </li></ul>
    3. 3. Wells Fargo Consumer Credit Group <ul><li>Basic Statistics </li></ul><ul><ul><li>A subgroup of Home & Consumer Finance…a nearly 50,000 member team </li></ul></ul><ul><ul><li>Consumer Credit Group Consists of six business channels to acquire, process and service loans and lines of credit </li></ul></ul><ul><ul><li>Serve more than 2.4 million households </li></ul></ul><ul><ul><li>Employs 6,000 team members throughout the country with offices in Albuquerque, N.M.; Anchorage, Alaska; Beaverton, Ore.; Billings, Mont.; Carlsbad, Calif.; Colorado Springs, Colo.; Concord, Calif.; Denver, Colo.; Des Moines, Iowa; Las Vegas, Nev.; Minneapolis, Minn.; Phoenix, Ariz.; and San Francisco, Calif </li></ul></ul>
    4. 4. The Good News – Your organization’s President has just assigned you as the “Leader” of your business’ Six Sigma Deployment The Bad News – Your organization’s President has just assigned you as the “Leader” of your business’ Six Sigma Deployment Now What?
    5. 5. Ready, Set, Stop! <ul><li>Prior to beginning a Six Sigma/Lean deployment a “readiness assessment” for the change initiative must be made! </li></ul><ul><li>This assessment will give the organization an indication of the likelihood to succeed. If the organization is not ready, do not proceed! </li></ul>
    6. 6. GO! Leader In Action You love this challenge, and now must determine the “right” things to do, in the “right” order to help make the deployment successful! <ul><li>As the deployment leader what action would you take as a first step in the </li></ul><ul><li>deployment of a Six Sigma initiative? </li></ul><ul><li>Seek help from a high priced consulting organization…you are way over your head! </li></ul><ul><li>Seek help from a low priced consulting organization…you are over your head, but want to stay within budget! </li></ul><ul><li>Hire experienced Master Black Belts….they will surely know what to do </li></ul><ul><li>Seek help from your HR representative about finding a new job! </li></ul><ul><li>Communicate to the organization…the what and the why . </li></ul>
    7. 7. Communicate The Initiative <ul><li>The first “critical” step in a Six Sigma deployment is to communicate what Six Sigma is, why the organization is implementing, and how this will be done. </li></ul><ul><ul><li>Communicate top to bottom </li></ul></ul><ul><ul><li>Hit the WIIFM at all levels </li></ul></ul><ul><ul><li>Publicize often as you proceed </li></ul></ul>Step 1: Communicate
    8. 8. Leader In Action Now that you have communicated the what, why, how, and have a perpetual communication link established, you proceed with the deployment journey <ul><li>You have heard that Six Sigma is a “change” initiative so you know just what the next step is… </li></ul><ul><li>Start looking for “change” in the vending machines of the break room! </li></ul><ul><li>Hire 007, because he was a great change agent…no wait, he was a secret agent </li></ul><ul><li>Hire experienced Master Black Belts….they will surely know what to do </li></ul><ul><li>Seek help from your HR representative about finding a new job! </li></ul><ul><li>Clarify the Six Sigma roles in the organization that will help create this change! </li></ul>
    9. 9. Clarify The Roles (and Responsibilities) <ul><li>A Six Sigma deployment has many critical roles that need to be defined, communicated, and leveraged! </li></ul><ul><ul><li>Executive Sponsor </li></ul></ul><ul><ul><li>Project Champions </li></ul></ul><ul><ul><li>Belts </li></ul></ul><ul><ul><ul><li>Green , Black, Master </li></ul></ul></ul><ul><ul><li>Finance Champion </li></ul></ul><ul><ul><li>IT Champion </li></ul></ul><ul><ul><li>HR Champion </li></ul></ul><ul><ul><li>Process Owners </li></ul></ul>Step 2: Roles & Responsibilities Change leaders
    10. 10. Leader In Action With the roles and responsibilities established and understood you need the “right things” to work in supporting the business. <ul><li>Working on the right things can best be accomplished by…. </li></ul><ul><li>Asking the CEO…s/he knows everything! </li></ul><ul><li>Benchmark against competitors…they probably know what’s important. </li></ul><ul><li>Hire experienced Master Black Belts….they will surely know what to do </li></ul><ul><li>Seek help from your HR representative about finding a new job! </li></ul><ul><li>Generate ideas and score (rate) those ideas through a systematic process! </li></ul>
    11. 11. Generate & Prioritize Ideas <ul><li>The right ideas should flow from the mission/vision and strategies of the business! </li></ul>Vision/Mission Cost Delivery Quality Business Need 1 Business Need 2 Project idea Line of site “ CTQ” flow down process
    12. 12. Generate & Prioritize Ideas <ul><li>Now you must prioritize the ideas! </li></ul>Step 3: Idea Generation, Scoring, Prioritizing
    13. 13. Who Leads the Initiatives? <ul><li>With the project ideas scored and prioritized you now know that you want the “best and brightest” lead. </li></ul><ul><li>Select your belt candidates based on objective criteria! </li></ul><ul><ul><li>Technical skills </li></ul></ul><ul><ul><li>Leadership skills </li></ul></ul><ul><ul><li>Project management skills </li></ul></ul><ul><ul><li>Change agency skills </li></ul></ul>Step 4: Select Belt Candidates
    14. 14. Charter The Projects <ul><li>With the right “belt candidates” selected, the projects need an official “sanction” to begin. This is usually accomplished through a project Charter . </li></ul><ul><ul><li>Champions complete the project charter! </li></ul></ul>Step 5: Charter the Projects
    15. 15. Belt Training and Development <ul><li>Now….finally (!) it’s time to send the belts to their training waves </li></ul><ul><ul><li>Green Belts : 6 – 10 days of training </li></ul></ul><ul><ul><li>Black Belts: 16-20 days of training </li></ul></ul><ul><ul><li>Master Black Belts : 10-25 days of training </li></ul></ul><ul><li>Many organizations will augment belt training with other specific leader, and change management training </li></ul>Step 6: Belt Training BB Training is great!
    16. 16. All Done? <ul><li>Belts will complete projects, achieve business results, and you will no doubt be in line for a promotion! </li></ul><ul><li>Is the deployment process complete? </li></ul><ul><li>How do we sustain gain to improve the “processes?” </li></ul><ul><li>We have one more step….Process Management! </li></ul>Step 7: Process Management
    17. 17. What Is Process Management? <ul><li>Accountability for managing processes to satisfy customer, shareholder and team member goals </li></ul><ul><li>Goal management </li></ul><ul><li>Performance management </li></ul><ul><li>Resource management </li></ul><ul><li>Interface / partner management </li></ul><ul><li>A company must continue to focus on its processes so that they stay attuned to the needs of the changing business environment. One shot improvements, even dramatic ones, are of little value. A process centered organization must strive for ongoing improvement. To accomplish this, a company must actively manage its processes… Process centering is not a project, it is a way of life.” </li></ul><ul><ul><li>Michael Hammer </li></ul></ul>
    18. 18. Results are a function of: Communication Role clarification Idea generation/prioritization Determine Belt candidates Chartering/Belt training Process Management Working all facets of the deployment – Drives order, speed and results Ad Hoc attention leads to confusion and inefficiencies If we engage the “ best and brightest ” as Black Belts, but don’t execute the right/significant projects, the Management Team will lose interest which will de-motivate the same Black Belts we are attempting to develop. The Effective Six Sigma Deployment Process
    19. 19. How Is Six Sigma Deployed? <ul><ul><li>Best practice organizations use the following structure to effectively deploy Six Sigma </li></ul></ul><ul><ul><ul><li>Initial assessment </li></ul></ul></ul><ul><ul><ul><li>Communication to the organization – What & Why </li></ul></ul></ul><ul><ul><ul><li>Clarification of Six Sigma Roles </li></ul></ul></ul><ul><ul><ul><li>Project idea generation & rating/scoring </li></ul></ul></ul><ul><ul><ul><li>Selection of Belt candidates / Embed SS Competencies in </li></ul></ul></ul><ul><ul><ul><li>Leadership Model & Promotional Path </li></ul></ul></ul><ul><ul><ul><li>Project charter preparation and training “wave” assignment </li></ul></ul></ul><ul><ul><ul><li>Belt training & development -- continuous </li></ul></ul></ul><ul><ul><ul><li>Process Management – Variation Metrics </li></ul></ul></ul>
    20. 20. Advantages of Effective Six Sigma Deployment <ul><li>Knowledge… </li></ul><ul><ul><li>Transfer Six Sigma DNA into the company </li></ul></ul><ul><ul><li>Deliver right tools and technique to solve business problems… for the last time </li></ul></ul><ul><li>Self-sustenance… </li></ul><ul><ul><li>Create Master Black Belts, Champions, Infrastructure </li></ul></ul><ul><ul><li>Build and leave Deployment Strategy in place </li></ul></ul><ul><ul><li>Establish foundation of Black Belts & Green Belts for project execution and mentoring </li></ul></ul><ul><li>Culture of Excellence… </li></ul><ul><ul><li>Shape a data driven team member base…Every discussion, meeting, decision </li></ul></ul><ul><ul><li>Produce a process-focus mentality… Everything is a process </li></ul></ul><ul><ul><li>Institute a common language… Six Sigma is how we work ! </li></ul></ul><ul><ul><ul><li>p-value </li></ul></ul></ul><ul><ul><ul><li>“ Statistically significant” </li></ul></ul></ul><ul><ul><ul><li>Variation </li></ul></ul></ul><ul><li>Results…Results…Results </li></ul>
    21. 21. <ul><li>I will be happy to address any other questions… </li></ul>Questions
    22. 22. Finale
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