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What is Six Sigma?



TPMG Lean Six Sigma - What is Six Sigma?

TPMG Lean Six Sigma - What is Six Sigma?



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What is Six Sigma? What is Six Sigma? Presentation Transcript

  • The Performance Management Group LLC Six Sigma     “ Achieving Service Excellence” First Contact Discussion
    • TPMG Six Sigma Principles
    • Passion and Accountability: The burning desire for everyone taking the personal responsibility to be the absolute best!
    • Operational Excellence: The result of continuously producing value added work products at the highest levels of productivity, efficiency, and quality!
    • Customer Loyalty: Enjoying the financial and market consequences of being #1 in the eyes of your customers!
    PM 6 σ Operational Excellence Customer Loyalty Passion & Accountability A Culture of Being Exceptional! Excellence! Slide 1
    • Six Sigma is a “quality improvement business practice” that strives to produce perfection in the delivery of services.
    • A “ method of management” that uses facts, information and data to make decisions and manage business performance.
    • A “ problem solving method” that identifies root causes to problems and determines permanent solutions.
    What is Six Sigma? Slide 2
  • Six Sigma wants you to pay attention to your customer. Do what the customer wants. Your manager helps you by providing resources, direction, training, and support. It is not the intention for your job success to be solely based on the measurement of managements yardstick “alone”. 5. Six Sigma is NOT just listening to the voice of the yard stick: The goal of Six Sigma is to find out WHY there are problems and eliminate the root cause of problems and waste. Prevention not fire fighting. It is not finding errors and defects and then fixing them. 4. Six Sigma is NOT fire fighting: To improve things, everyone must make the SYSTEM work better. Measurement and evaluation of the processes is essential. It is not an intense focus on working harder and faster, nor is there an intense focus on peoples performance against productivity standards 3. Six Sigma does NOT solely focus on people: The premise of Six Sigma implies that everyone will produce something of value. The goal of Six Sigma is to ensure that everyone produces work products efficiently, and is driven by a responsible executive and management team. It is not the new “flavor-of –the-month” packed with slogans and signs. 2. Six Sigma is NOT a program: The goal is to obtain the highest levels of customer loyalty and achieve the highest levels of productivity in order to avoid strategies and policies that are destructive. It is not across – the – board cuts that result in travel and hiring freezes, reductions-in-force or project delays. 1. Six Sigma is NOT a budget cutting strategy:
    • Sigma ( σ ) is a Greek letter that represents variation.
    • The sigma value indicates how well an
    • operation is performing. To achieve 6 σ
    • performance means a service operation only
    • produces 3.4 errors out of every million
    • opportunities (EPMO).
    What does Six Sigma Mean? Slide 3
    • Six Sigma translates into bottom line
    • results!
      • Call centers improve handling times.
      • Service centers improve cycle times.
      • Fewer billing errors and customer credits.
      • Work quality within and across functions become more efficient.
      • Overall productivity and cost effectiveness improves.
    Why is Six Sigma Important? Slide 8
  • Higher Growth In Sales Higher Growth In Income Higher Growth In Stock Price 37% 48% 44% Quality Delivers Business Results! Source: US Department of Commerce National Institute of Standards and Technology. Slide 9 Why is Six Sigma Important?
    • You can quantify the return on your
    • investment!
      • GE calculated a $10 Billion Return in its first 5 years.
      • Bank of America estimated $1 Billion in savings in its 1 st year.
      • Phelps Doge estimated over $40 Million in its 1 st year with limited deployment.
      • (Source: Caler Group, isixsigma.com)
    Why Consider Six Sigma? Slide 10
    • Best form of management and employee training for a
    • company!
      • Voice of the Customer.
      • People Skills.
        • Working with and through others.
        • Consensus building and group decision making.
        • Working in teams to get results (Team Building).
      • Management Skills
      • Measuring and managing performance.
      • Process design and improvement.
      • Problem solving at the root cause.
      • Work across functions to produce results.
      • Financial impact analysis.
      • Project Management.
    Why Consider Six Sigma ? Slide 7
  • Essential Skills Trend and Stability Analysis Capability Analysis Cause and Effect Analysis Y = F(X) Pareto Analysis Root Cause Analysis Cost Benefit Analysis
    • Customer Loyalty
      • Needs
      • Attitudes
      • Perceptions
    • Operational Excellence
      • Cycle Time Reduction
      • Greater Accuracy
      • Less Rework
      • On Time Service
    The Six Sigma Value Proposition Slide 4 Determines customer short and long term requirements, expectations, and preferences to ensure the relevance of current product offerings and service levels. Operational requirements that become the Excellence Standards
  • Dept. A Dept. B Dept. C Dept. D Company Dept. A Dept. B Dept. C Dept. D The Customer Product /Service Delivery Functionally Focused Process Focused
    • Functionally Focused Organizations:
    • “ Us-versus-them” relationships which can limit communication between departments.
    • Departments too concerned with its own needs to meet the needs of external customers.
    • Unmanaged gaps between departments that often disrupt the continuity of cross-functional work processes.
    • Process Focused Organizations:
    • Encourage relationships across functions.
    • Base process requirements on internal and external customer needs.
    • Promote teamwork to improve “shared” work processes.
    Slide 5 Six Sigma Encourages Co-operation Functional Focused Organizations VS Process Focused Organizations
  • Cost decrease because of fewer deficiencies, fewer delays & snags, fewer errors & credits, less rework and better use of technology, materials and people! Productivity Improves! Capture the market with better quality & lower price! Enhance Shareholder value! Stay in business and provide more jobs! PM 6 σ Excellence!
    • Sets in Motion a “Chain Reaction!”
    • Fewer Defects.
    • Less Waste.
    • Fewer Errors & Credits.
    • Improved Cost Effectiveness.
    Slide 6 Six Sigma Promotes Operational Excellence
  • Trends Stability Capability
    • Measure, Measure, Measure
    • Daily
    • Weekly
    • Monthly
    • Etc…
    Averages Variation Six Sigma Promotes Evaluation
  • TPMG’s Leveraged Management Strategy™ EIC Dept A Dept B Dept C Quality & Process Improvement IC IC IC IC IC IC IC IC Practitioner /Managers: Green Belt Certification Six Sigma Basic Training Facilitators/Technical Expert(s): Black Belt Certification Executive Champion(s) Executive Seminar Cross Functional Processes IC Associates: Six Sigma Basic Training How to leverage the existing management and organizational structure for breakthroughs in process improvement and performance management. Slide 11
    • Why The Performance Management Group ?
    • Most Qualified Trainers and Consultants.
    • Experts with Service
    • Providers.
    •  Telecommunications.
    •  Energy and Utilities.
    •  Financial Services.
    •  Insurance Services.
    •  Logistics.
    •  etc…
    • (References Provided)
    • 3. Guaranteed Results!
    Slide 12
    • Certifications for each level of business!
    • 6 σ Black Belt Certification - Technical Experts.
    • 6 σ Green Belt Certification – Practitioners.
    • Six Sigma Basic Training – Middle Management
    • Six Sigma Champions - Executive Leadership
    Slide 13
    • 3 Levels of Service
    • Classic Public Sessions.
    • On – Site Dedicated.
    • On – Site Premium.
    Slide 14
  • On-Site Premium Services
    • Full Time Dedicated Consultant(s).
    • 6 - 12 Month Tenure
    • On-Site Training & Certification.
    • Expert Project Supervision.
    • Train the Trainer
    • Guaranteed Results!
    Slide 15
    • Fee Structure:
    • On-Site Premium Services – Per Consultant
      • $150.00 – $175.00 Per Hour (8 hour/day max)
      • 15 - 18 Work Days Per Month
      • Plus Cost of Materials (at cost)
        • Manuals – $35.00 to $45.00.
        • Software - $100.00 to $125.00
  • Envision Prioritize Commit Improve Achieve Turning the Strategy Wheel!
    • 12-18 month Quality Vision.
    • Identify Critical Success Factors.
    • Commit to 6 σ Projects.
    • Realize Improvements.
    • Experience the Vision.
    Premium Services – Six Sigma Strategy Slide 16 TPMG
  • Train Your Teams. Define Your Overall Six Sigma Vision. Define Departmental Missions. Deploy Your Teams. Focus On Core Processes. Integrate Measurements. Deploy DMAIC. 1 2 3 4 5 6 7 Deploying Six Sigma Service Excellence! Slide 17
  • Define Measure Analyze Improve Control From Root Cause to Performance Improvement!
    • Define
    • Identify limiting factors and barriers.
    • Measure
    • Understand the degree of impact.
    • Analyze
    • Ascertain the Root Causes.
    • Improve
    • Remove Root Causes.
    • Control
    • Maintain and improve outcomes.
    Slide 18 TPMG
    • Breaking the fallacies :
    • We don’t have time for Six Sigma!
      • Six Sigma makes work 54% less time consuming.
      • Eliminates rework, returns, unanticipated truck roles and the time associated.
    • It is too complicated!
      • 8 th grade education.
      • Software makes it simple.
    • It is too expensive!
      • Six Sigma will improve a company’s bottom line by at least 25%.
    • It won’t fit into our culture!
      • Six Sigma serves the profit motive!
      • Six Sigma serves companies who strive for customer loyalty!
      • Six Sigma serves leaders who strive for the team concept.
    Slide 19
  • ? Questions Comments Contact TPMG at 623.643.9837 Slide 20