How to plan for an effective Six Sigma
 Implementation in your Organization
             (Workshop)
                   Dr....
Workshop Agenda
             Workshop     Leadership   Project
             Overview     Jumpstart    Selection



• Works...
Workshop Overview
      Workshop   Leadership   Project
      Overview   Jumpstart    Selection




•Overview of Six Sigma...
Overview of Six Sigma Business Improvement Campaign

         Phases                                  Processes




      ...
Phase 1- Jumpstart Processes & Deliverables
        Leadership Jumpstart
       Leadership Jumpstart


     Voice of Custo...
Phase 2 – Project Selection Processes &
                      Deliverables
Project Selection
Project Selection




       ...
Phase 3 – Project Implementation
Project Implementation
Project Implementation




                 “Deliverables”
  CHART...
Leadership Jumpstart
           Workshop    Leadership   Project
           Overview    Jumpstart    Selection




•Assess...
Phase 1- Jumpstart Processes & Deliverables
              (Assessing Current Situations)
       Phases                    ...
What Do Customers Want?
The challenge is to understand how your customers define and prioritize the
various needs and expe...
Example: Voice of the Customer
                  Voice of the Customer
      What are the key expectations for your busine...
Scorecard Assessment
                                                  Balanced Scorecard
                     Financial  ...
Activity Format
     Poster and post-it note driven.
     General to specific, small teams to large group
     roll up.
  ...
Identifying of Strategic Objectives
                                                                                      ...
Phase 2 – Project Selection Processes & Deliverables
                         (Schematic Creation)
       Phases          ...
The Leadership Challenge – Keeping a Focus
             on the Big “Ys”


        Y            = f (1x1 , 10x2 , 2x3 ... )...
Identify the Key Metrics (Y’s)

                                           Y
                                           Y
...
Example of Key Metrics (Y’s)
                    Q                R                     P                    E

          ...
TEAM

Identify the Big "Y" and Vital "x"
                                                                                 ...
Project Selection
           Workshop   Leadership   Project
           Overview   Jumpstart    Selection




•Six Sigma P...
Phase 2 – Project Selection Processes & Deliverables
                     (Projects Identification and Selection)
        ...
What’s the Output We Want?

               Six Sigma Business
                  Improvement
               Campaign Target...
The Leadership Challenge – Keeping a
       Focus on the Big “Ys”

       Y            = f (1x1 , 10x2 , 2x3 ... )
  Resul...
Six Sigma Project Identification
   Successful deployment of Six Sigma requires alignment to Strategic
   Goals and defini...
Example - Six Sigma Project Identification
                   Life Time Buy Project



Y            BIG “Y” Operating Earn...
Example - Six Sigma Project Identification
                                    •   Customer retention
                    ...
Project Ideas (Examples)
  Big X         Vital X      Priority                    Projects

Conversion Overall            ...
Six Sigma Project Criteria

•   Impacts a key business goal
•   Requires analysis to uncover root cause
•   Has cross-func...
Project Prioritization
                                                                    Sample Template
 Assign importa...
TEAM

Identifying the Six Sigma Projects
                                                                                 ...
Project Ideas (Template)
Big X    Vital X   Priority   Projects
Six Sigma Projects Identification- Drill Down Format
                                        Y=




             ‘y’ =    ...
Phase 3 – Project Implementation
           (Charter Creation and Governance Plan)
       Phases                          ...
Why develop a Team Charter?

• Create a single-page summary of the project

• Establish a contract between Stakeholders an...
Project Charter Elements
                                             Team Charter
Elements of a Team Charter:   Business ...
Projects Charters
   Project 1:             Map project to key
  To increase             stakeholders (sponsor,
machine ef...
Barriers/Pitfalls to avoid
                     70% of process initiatives fail due to:
Project Selection    Lack of align...
Governance Plan: Project Progress Reporting to
                        Management
                                        ...
Project Coaching Template (Example for D/M phases)
Project Name: XXX                                                      ...
Building Six Sigma Capability
. . . to support a Six Sigma Campaign in your organization

  Senior        Leadership Jumps...
Six Sigma Deployment
                     A Comprehensive Approach
                                              5

      ...
Six Sigma Roll Out Plans 2010 - South Africa
• Run open Green Belt Classes at Johannesburg – 5 day
  classes. This will be...
Lean Six Sigma Green Belts Certification
                Process
     Lean Six Sigma
       GB Training                   ...
Thank You
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David Tan workshop Motorola University Malaysia

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David Tan workshop Motorola University Malaysia

  1. 1. How to plan for an effective Six Sigma Implementation in your Organization (Workshop) Dr. David Tan, Motorola University Corporate University Conference Johannesburg, , South Africa 6th May 2010 Motorola University These materials, including all attachments, are protected under the copyright laws of the United States and other countries as an unpublished work. These materials contain information that is proprietary and confidential to Motorola University and are the subject of a License and Nondisclosure Agreement. Under the terms of the License and Nondisclosure Agreement, these materials shall not be disclosed outsider the recipient’s company or duplicated, used or disclosed in whole or in part by the recipient for any purpose other than for the uses described in the License and Nondisclosure Agreement. Any other use or disclosure of this information, in whole or in part, without the express written permission of Motorola University is prohibited. Six Sigma® is a registered trademark and service mark of Motorola.
  2. 2. Workshop Agenda Workshop Leadership Project Overview Jumpstart Selection • Workshop Overview • Leadership Jumpstart •Team Activity- Identifying of Strategic Objectives and Customers Expectations •Team Activity- Identify the Big "Y" and Vital "x" •Project Selection: •Team Activity- Identifying the Six Sigma Projects •Project Implementation
  3. 3. Workshop Overview Workshop Leadership Project Overview Jumpstart Selection •Overview of Six Sigma Business Improvement Campaign •Phases in Jumpstart and Project Selection Process
  4. 4. Overview of Six Sigma Business Improvement Campaign Phases Processes Governance for Sustainability Governance for Sustainability Voice of Customers, Leadership Jumpstart Leadership Jumpstart Market, Y Shareholders & Technology Balanced Scorecard Project Selection Project Selection Project Implementation Project Implementation Project Closure Project Closure 1
  5. 5. Phase 1- Jumpstart Processes & Deliverables Leadership Jumpstart Leadership Jumpstart Voice of Customers, Market, Y Shareholders & Technology Balanced Scorecard “Deliverables” 1. VOC Identification of Identification of ASSESSMENT ASSESSMENT 2. Financial Data KRA and Big Ys’(KPI) KRA and Big Ys’(KPI) 3. Performance Data 4. Scorecard 5. WIP Project Review 6. Sponsor Alignment VOC= Voices of Customer Customer Expectations Practice in Workshop
  6. 6. Phase 2 – Project Selection Processes & Deliverables Project Selection Project Selection “Deliverables” Identification of DRIVERS 1. Schematic Creation Identification of Vital Xs’ and Projects DRIVERS Vital Xs’ and Projects 2. Root Cause Analysis 3. Vital Few Analysis VITAL X’S VITAL X’S 4. Project Identification Practice in Workshop
  7. 7. Phase 3 – Project Implementation Project Implementation Project Implementation “Deliverables” CHARTERS CHARTERS Creation of 1. Charter Creation Creation of Project Charter and Project Charter and 2. Resource Allocation Governance Plan Governance Plan 3. Sponsor Review & GOVERNANCE GOVERNANCE Approval 4. Governance Plan Covered in Workshop
  8. 8. Leadership Jumpstart Workshop Leadership Project Overview Jumpstart Selection •Assessing Current Situations •Team Activity- Identifying of Strategic Objectives and Customers Expectations •Team Activity- Identify the Big "Y" and Vital "x"
  9. 9. Phase 1- Jumpstart Processes & Deliverables (Assessing Current Situations) Phases Processes Governance for Sustainability Governance for Sustainability Leadership Jumpstart Leadership Jumpstart Voice of Customers, Market, Shareholders & Y Identify of (VOC) Customer Expectations and Score Card TechnologyBalanced Scorecard Project Selection Project Selection Project Implementation Project Implementation Project Closure Project Closure 1
  10. 10. What Do Customers Want? The challenge is to understand how your customers define and prioritize the various needs and expectations they have of your products and services. Product or Service Features, Attributes, Dimensions, Characteristics Quality Relating to the Function of the Product or Service, Reliability, Availability, Taste, Effectiveness - Also Freedom from Defects, Rework, or Scrap. Cost Prices to Consumer (Initial Plus Life Cycle), Repair Costs, Purchase Price, Financing Terms, Depreciation, Residual Value. Delivery Lead Times, Delivery Times, Turnaround Times, Setup Times, Cycle Times, Delays. Service Requirements, After-Purchase Reliability, Parts Availability, Service & Safety Service, Warranties, Maintainability, Customer-Required Maintenance, Product Liability, Product/Service Safety. Corporate Ethical Business Conduct, Environmental Impact, Regulatory and Legal Responsibility Compliance.
  11. 11. Example: Voice of the Customer Voice of the Customer What are the key expectations for your business? • Meet or exceed product/service expectations. • Communicate order status. • Provide products customized for each specific application. • Easy access to information throughout the buy-build- install cycle. • Provide product that works. • Provide more value. • 24 X 7 immediate availability on support services.
  12. 12. Scorecard Assessment Balanced Scorecard Financial Customer Process People - Financial - Delivery Performance to - Number of Activities - Investment Rate - Cash flow Customer - by Date - Opportunity Success Rate - Illness rate ASSESSMENT ASSESSMENT - ROI - Delivery Performance to - Accident Ratios - Internal Promotions % - Financial Result Customer - by Quality - Overall Equipment - Employee Turnover - Return on capital - Customer satisfaction rate Effectiveness - Gender/Racial Ratios employed - Customer Loyalty - Return on equity - Customer retention • Review current scorecard and capture what’s important to the stakeholders. • Determine if it corresponds to items important to them gathered from the VOC collection. • * If a Scorecard is not available, then reference to the Business Plan/KPIs/Organization Goals, etc.
  13. 13. Activity Format Poster and post-it note driven. General to specific, small teams to large group roll up. “Drill down” to deeper clarity and real insight. Brainstorm Consolidate Sort Prioritize Item one Item two Item three Item four Item five Item six
  14. 14. Identifying of Strategic Objectives TEAM ACTIVITY and Customers Expectations V o ic e o f t h e Balanced Scorecard C u s t o m eo i c S to fk t h eo l d e r V r / e a eh W hat are your customer/stakeholders’ keyo l d e r C u s t o m e r / S t a k e h expectations? Financial Customer Process People W hat are your meet m y expectations, you m ust … ” “In order to customer/stakeholders’ key expectations? “In order to meet m y expectations, you m ust … ” - Financial - Delivery Performance to - Number of Activities - Investment Rate Inventory - Cash flow Customer - by Date - Opportunity Success Rate - Illness rate Inventory - ROI - Delivery Performance to - Accident Ratios - Internal Promotions % 30 mins - Financial Result Customer - by Quality - Overall Equipment - Employee Turnover - Return on capital - Customer satisfaction rate Effectiveness - Gender/Racial Ratios Customer Customer employed - Customer Loyalty - Customer retention Expectations Expectations - Return on equity KRA/KPI, Business KRA/KPI, Business Plan/Organization Goals Plan/Organization Goals In your team…. Step 1 • Review current scorecard and capture what’s important to the stakeholders. Step 1 • Determine if it corresponds to items important to them gathered from the Customer Expectations.
  15. 15. Phase 2 – Project Selection Processes & Deliverables (Schematic Creation) Phases Processes Governance for Sustainability Governance for Sustainability Leadership Jumpstart Leadership Jumpstart Voice of Customers, Market, Shareholders & Y Technology Balanced Scorecard Project Selection Project Selection Project Implementation Project Implementation Project Closure Project Closure 1
  16. 16. The Leadership Challenge – Keeping a Focus on the Big “Ys” Y = f (1x1 , 10x2 , 2x3 ... ) Results that matter Which activities will enable you to achieve those results? Six Sigma Project Selection On-going Sponsorship and Review 1
  17. 17. Identify the Key Metrics (Y’s) Y Y y1 Y 2 y3 Y 4 yn X1 1X2 X3 X4 X5 X6 5X7 X8 2X9 X10 10Xn X1 1X2 2X3 X4 X5 5X6 X7 X8 10X9 X10 X11 X12 1X13 X14 Xn 1
  18. 18. Example of Key Metrics (Y’s) Q R P E Revenue Engineering Big Y’s Quality Growth Profitability Effectiveness Emerging Engineering Customer Portfolio 1 Loyalty Planning Market Gross Margins Productivity Little Y’s Customer Competitive Product Common 2 Reported Differentiation Cost Platform Defects Reductions Product Product Engineering Program 3 Reliability Gaps Cost of Quality Execution Cycle Time Right the Innovation to 4 First Time Commercial Availability
  19. 19. TEAM Identify the Big "Y" and Vital "x" ACTIVITY What are the right “Y’s” for monitoring your business performance and how do they link together? 30 mins In your team, brainstorm Se a r c h i n g f o r t h e Ri g h t “ Y ’s ” Se a r c h i n g f o r t h e Ri g h t “ Y ’s ” The Big “Y” The Big “Y” the key metrics that are the best indicators of business performance. Little Y’s Little Y’s Capture on post-it notes (one idea per note). Post on the Poster. Vital X Vital X Ask, “Is this a metric or an activity?”
  20. 20. Project Selection Workshop Leadership Project Overview Jumpstart Selection •Six Sigma Project Identification •Project Alignment and Definition •Team Activity- Identifying the Six Sigma Projects
  21. 21. Phase 2 – Project Selection Processes & Deliverables (Projects Identification and Selection) Phases Processes Leadership Jumpstart Governance for Sustainability Governance for Sustainability Leadership Jumpstart Voice of Customers, Market, Shareholders & Y Technology Balanced Scorecard Big X Vital X Priority Projects Assign importance weightage here --> 9 10 9 Criteria Category --> Strategic Existing Sales Project Selection Project Important Six Strategic gap impact or Project Ideas: State the Problem ProjectsSelection Sigma Ranking Total "Big Y" strategic growth customer Identification (Ideas) project? potential Projects Selection Project Implementation Project Implementation Project Closure Project Closure 1
  22. 22. What’s the Output We Want? Six Sigma Business Improvement Campaign Targets and Metrics Improvement Improvement Improvement Project “A” Project “B” Project “C” 4-6 months for initial campaign
  23. 23. The Leadership Challenge – Keeping a Focus on the Big “Ys” Y = f (1x1 , 10x2 , 2x3 ... ) Results that matter Which activities will enable you to achieve those results? Six Sigma Project Selection On-going Sponsorship and Review
  24. 24. Six Sigma Project Identification Successful deployment of Six Sigma requires alignment to Strategic Goals and definition of projects at the process level of the business Y Strategic Goals Alignment? And Significant Impact? X Vital Drivers Process Key Processes Definition Manageable Scope? Project Issue Statements/ Goal 4-6 months Definition Prioritize Projects Project Readiness Assessment Perform Project Impact Performance
  25. 25. Example - Six Sigma Project Identification Life Time Buy Project Y BIG “Y” Operating Earnings Little “y” Cost of Poor Quality X Vital Drivers Excess & Obsolete Process Key Processes Life Time Buy Definition Issue Statements Project Minimize LRP Variation Definition in LTB Process Project Readiness Assessment Perform Project Run Methodologies DMAIC, DMADDD, Impact DMADV Performance
  26. 26. Example - Six Sigma Project Identification • Customer retention • Revenue per customer Revenue • Service Speed Management • Service Quality Operating Areas to Apply Six Sigma Project margin • Yield • Cycle time Return Cost • Productivity on Management • Service / Product capital Performance • Facilities utilization Fixed asset Current • Capacity utilization management and • Technology utilization Net asset Cost of Future turnover capital Economic • Inventory turnover Working Profit • Accounts receivable days capital • Accounts payable days management Growth • Market penetration • Market development • Service / product development
  27. 27. Project Ideas (Examples) Big X Vital X Priority Projects Conversion Overall 1 1. To increase machine efficiency on Cost Productivity - liquid production line Machine 2. To increase machine efficiency on solid production line Conversion Overall 2 1. To increase operator efficiency at Cost Productivity - Back-End line Personnel 2. To increase QA operator efficiency Conversion Overall 3 1. To reduce schedule variability for Cost Productivity - consumer healthcare products Process Overall 3 1. To optimize machine utilization Productivity - Machine Overall 3 1. To improve in-process control for Productivity - blistering section for product X line Process
  28. 28. Six Sigma Project Criteria • Impacts a key business goal • Requires analysis to uncover root cause • Has cross-function/cross-business impact • Addresses customer pain • Focuses on a key business process • Produces quantifiable results • A minimum of $50K for Green Belt projects (example) • A minimum of $100K for Black Belt projects (example) • Achievable in time to make a difference • Average 4 months for Green Belt projects • Average 6 months for Black Belt projects
  29. 29. Project Prioritization Sample Template Assign importance weights to criteria. Weight assigned is for illustration. Score the projects as a Revise criteria List all identified team by rating (Use any accordingly. Criteria improvement opportunity scale desired. Example: shown is for Use numbers 1-10 or a project ideas here. illustration. one (1) for correlation Projects shown here are and zero for low for illustration. correlation, etc.).
  30. 30. TEAM Identifying the Six Sigma Projects ACTIVITY What specifically could we improve that would have direct impact on each priority performance driver? 20 mins In your team…(assign by common “application” or Y’s) Big X Vital X Priority Projects Identify the vital/key drivers (x’s) that are aligned to the Y’s Identify the processes/projects that are aligned to the vital/key drivers (x’s) Prioritize the projects identified. Assign importance weightage here --> 9 10 9 Criteria Category --> Strategic Existing Sales Important Six Strategic gap impact or Project Ideas: State the Problem Sigma Ranking Total "Big Y" strategic growth Use post-it notes (one x and customer project? potential process per post-it note).
  31. 31. Project Ideas (Template) Big X Vital X Priority Projects
  32. 32. Six Sigma Projects Identification- Drill Down Format Y= ‘y’ = ‘y’ ‘y’ ‘x’ = ‘x’ = ‘x’ = ‘x’ = ‘x’ = ‘x’ = Projects Projects Projects Projects Projects Projects
  33. 33. Phase 3 – Project Implementation (Charter Creation and Governance Plan) Phases Processes Leadership Jumpstart Governance for Sustainability Governance for Sustainability Leadership Jumpstart Voice of Customers, Market, Shareholders & Y Technology Balanced Scorecard Project Selection Project Selection Project Implementation Project Implementation Project Closure Project Closure 1
  34. 34. Why develop a Team Charter? • Create a single-page summary of the project • Establish a contract between Stakeholders and Team Members • Clearly establish the reasons for change • Communicate the key milestones of the project
  35. 35. Project Charter Elements Team Charter Elements of a Team Charter: Business Case Opportunity Statement ¨ Why should we do ¨ What ‘pain’ are we this? experiencing? • Business Case: Purpose ¨ What is wrong? • Opportunity Statement: Business Impact Goal Statement Project Scope ¨ What are our ¨ What authority do we improvement have? • Goal Statement: Success objectives and ¨ What processes are Criteria targets? we addressing? ¨ What is not within • Project Scope: Boundaries scope? Project Plan Team Selection • Project Plan: Activities ¨ How are we going to ¨ Who are the team get this done? members? ¨ When are we going to ¨ What responsibilities • Team Selection: Who and complete the work? will they have? What
  36. 36. Projects Charters Project 1: Map project to key To increase stakeholders (sponsor, machine efficiency champion, belt on liquid candidates) production line Project 3: To increase QA operator efficiency Project 4: To optimize machine utilization Project 5: To increase machine efficiency on solid production line
  37. 37. Barriers/Pitfalls to avoid 70% of process initiatives fail due to: Project Selection Lack of alignment with a strategic priority Insufficient reasons for change No financial estimate Can’t be completed in 3-6 months Team Charter No clear & measurable goals Not staffed with the right people or enough time Stakeholder Key stakeholders unwilling to try new solutions Analysis Key stakeholders and managers not committed Risk Assessment Starting projects with no understanding of risk Ignoring early red flags Customer Lack understanding of customer experience & needs Requirements
  38. 38. Governance Plan: Project Progress Reporting to Management D/M D/M D/M A A I I C C No Project Title Team Leader 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 Keys A Improving performance and meeting goal B Improving performance and moving closer to meeting goal Any or in any project C Improving performance but not meeting goal warrants escalation to project D No progress from last review but still meeting goal champion and senior management E No progress from last review and not meeting goal sponsor for remedial actions F Not improving but still meeting goal G Not improving and not meeting goal
  39. 39. Project Coaching Template (Example for D/M phases) Project Name: XXX Date: XXX Project Leader: XXX Coaching Session # X Project Goals Critical Customer Requirement Indicators Baseline Goal Due Date 1. XXX 2. XXX 3. XXX 4. XXX 5. XXX Annual Cost Saving/Revenues PLEASE QUANTIFY D M A I C Business Case Opportunity Statement Goal Statement Project Scope Project Plan Team Members Action Plan Process Map Quick Win Opportunities Critical Customer Requirement Prepared Team Input, Process & Output Indicators Operational Definitions . Data Collection Formats & Plans Baseline Performance Productive Team Atmosphere Legend: Completed, add comment if needed e.g. refinement needed (color blue) MU Consultant’s Signature: ________________ Not completed; add comment, what needs to be done (color red) Project Champion’s Signature:______________ Not applicable (color black)
  40. 40. Building Six Sigma Capability . . . to support a Six Sigma Campaign in your organization Senior Leadership Jumpstart Event (1 Day) Leadership - align with business strategy Team - secure commitment, prioritize and resource projects Six Sigma Green Belt Training (5 days) Green Belts - prepare team members to execute project activities - provide solid foundation of improvement processes and tools Project Coaching by Motorola University (MU)
  41. 41. Six Sigma Deployment A Comprehensive Approach 5 Institutionalize Six Sigma • Horizontal spread to all areas 4 Project Reviews & Completion • Execute projects. Calculate • Document and publicize success stories. 3 ROI Step Training & Project Work • Green Belt / Black Belt training. • Project initiation & Follow up. 2 Project Definition • Executive workshop • Champion development 1 • Finalize project charter Diagnosis, Project Selection & Organization • Understanding business & Six Sigma Approach • Development of Organization Design • Selection of appropriate six sigma projects Time 3
  42. 42. Six Sigma Roll Out Plans 2010 - South Africa • Run open Green Belt Classes at Johannesburg – 5 day classes. This will be called Lean Six Sigma Green Belt Program focus on 2 powerful methodologies – Six Sigma and Lean • Planned Dates for the 1st open class – July 19 to 23, 2010 • Max Class Size –15 Participants, Minimum –8 participants • Pricing Details • Only Training – USD 2500/- • Training and Certification – USD 2850/- • In house Programs: Can be offered based on specific requests from Organizations • Minimum Nominations Required – 10 Participants per session • Pricing: To be Determined and firmed after review of scope • Contact Point from Motorola • Name : Jacob J, Email – a12917@motorola.com
  43. 43. Lean Six Sigma Green Belts Certification Process Lean Six Sigma GB Training Legend Lean Six Sigma MU – Motorola University Lead a GB Exam MBB - Master Black Belt Lean Six Sigma GB – Green Belt GB Project Validation of project & GB skill-set by MU and candidate’s management Min No Yes Final Review Yes Certified Requirement Approved? by MU MBB Green Belt Met? No
  44. 44. Thank You

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