Interface Between Six Sigma and Knowledge Management

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How we interface the Power of Six Sigma and Knowledge Management to succed with the Organizational Goal/

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Interface Between Six Sigma and Knowledge Management

  1. 1. March 07, 2008 Interface Between Six Sigma and Knowledge Management Slide 01/23
  2. 2. Agenda Slide 02/23 Conclusion. Bibliography. Six Sigma : An Overview and Details Interface Bet. Six Sigma and Knowledge Management. Knowledge Management : An Overview & Details Introduction Case Study.
  3. 3. + Coming Together is Beginning, Staying Together is Progress, & Working together is Success. (Henry Ford) Introduction Slide 03/23 ORGANIZATION SUCCESS <ul><li>Growth of Business </li></ul><ul><li>Customer Focus </li></ul><ul><li>Stated & implied needs </li></ul><ul><li>Quality, delivery and Price </li></ul>“ Teamwork” means “WE” not “I”. <ul><li>b) Profitability </li></ul><ul><li>Profit = </li></ul><ul><li>(Price – Mfg. Cost.) </li></ul><ul><li>Increased Price </li></ul><ul><li>Decrease mfg. cost </li></ul>Satisfied Internal Customer will fetch the Satisfaction of External Customer.
  4. 4. Six Sigma : An Overview and Details Slide 04/23 Conclusion. Bibliography. Interface Bet. Six Sigma and Knowledge Management. Knowledge Management : An Overview & Details Case Study. Introduction
  5. 5. Slide 05/23 Six Sigma : Six Sigma, at the technical/statistical level, is a measure of variation in defects in a system. i.e. at Six Sigma Level – 3.4 defects/million Definition: “ Six Sigma may be defined as a customer-oriented, structured, systematic, proactive and quantitative company wide approach for continuous improvement of manufacturing, services, engineering, suppliers and other businesses. Developed at “MOTOROLA” and be adopted at various places like GE, Dow Chemical and Allied Signal etc. Goal of Six Sigma: 1) To improve the Customer satisfaction by reducing and eliminating gaps / defects. 2) To continuously improve processes throughout the organization. Six Sigma An Overview
  6. 6. Slide 06/23 Benefits of Six Sigma : - Defect free product and services. - Lower warranty costs. - Lower production costs. - Journey towards excellence i.e. movement from % defect – PPM – PPB – Zero Defect. - Better reputation in Market. - Greater Customer Satisfaction. - Higher employee’s morale. - Organization breathes / smells quality (i.e. Quality become way of life.) Six Sigma Benifits
  7. 7. Six Sigma: A Powerful Methodology (DMAIC) Slide 07/23 Measure Define Improve Analyze Control what is important to the customer: 1) Who is my Customer 2) What matters? 3) What’s the Scope 4) What defect am I trying to reduce? how well we are doing: What’s my Process? Collect Data Construct Process Flow Validate Measurement System the process: Analyze Data Identify Root Causes (Which Inputs actually affect?, By how much, ) the process gains: Ensure Solution is Sustained the process performance measures: Prioritize root causes Innovate pilot solutions Validate the improvement
  8. 8. Six Sigma : An Overview and Details Knowledge Management : An Overview & Details Slide 08/23 Conclusion. Bibliography. Interface Bet. Six Sigma and Knowledge Management. Case Study. Introduction
  9. 9. Knowledge Management : Knowledge Management is the process through which Organizations generate values from their intellectual and knowledge based assets. Definition: “ Knowledge Management as the conscious strategy of putting tacit and explicit knowledge into action by creating context, an infrastructure, and learning cycles that enable people to find and use the collective knowledge of the enterprise.” Goal of Knowledge Management : To enable right information to flow to the right people at the right time. ( which will being help them take quicker, more informed and effective decisions.) Knowledge Management - An Overview Slide 09/23
  10. 10. Knowledge Management Steps Slide 10/23 Successful implementation of Knowledge management System involve the following phases: STAGE 4 Training Support STAGE 3 Design and Launch KM Initiatives STAGE 2 Develop Strategy STAGE 1 Get Started STAGE 5 Performance Evaluation Knowledge Management System
  11. 11. Slide 11/23 Benefits of Knowledge Management : - Faster and enhanced communication. - More visible opinions, increased staff participation . - Reduced Problem Solving Time. - Faster Results, Delivery to Market, High Efficiency. - Higher Profitability (Higher sales – decreased cost) - Better reputation in Market. - Customer Focus, Targeted Marketing. - Improved Project Management. Approaches of Knowledge Management : - Self Service, Networks and communities of practice (CoPs). Self Service – Content Mgmt., Portals, Search function. Knowledge Management - Benefits
  12. 12. Knowledge Management : An Overview & Details Interface Bet. Six Sigma and Knowledge Management. Slide 12/23 Six Sigma : An Overview and Details Conclusion. Bibliography. Case Study. Introduction
  13. 13. Slide 13/23 Comp. between Six Sigma & Knowledge Mgmt.: 1) Six Sigma is a measure of variation in defects in a system whereas Knowledge Management is the conscious strategy of putting tacit and explicit knowledge into action by creating context, infrastructure. 2) Purpose – a) Six Sigma – to remove defects, waste minimization etc. b) K.M. – Right Information + Knowledge flow + right people + right time = decision making. 3) Knowledge Management is the Broader Concept than Six Sigma. Interface Between Six Sigma & Knowledge Management
  14. 14. Slide 14/23 <ul><li>Approaches to Six Sigma and Knowledge Management: </li></ul><ul><li>1) Self Service: </li></ul><ul><ul><li>Knowledge Management – Connecting people to information. </li></ul></ul><ul><ul><li> - Content Mgmt., Portals, Search Functions, </li></ul></ul><ul><ul><li> Communities of Practice. </li></ul></ul><ul><ul><li>Six Sigma – What sort of projects have been done the results achieved. </li></ul></ul><ul><ul><li>2) Networks and Communities of practice: </li></ul></ul><ul><ul><li>Knowledge Management – Most powerful and vibrant approach. </li></ul></ul><ul><ul><li> Groups of common interest, which shares & </li></ul></ul><ul><ul><li> learn information, trade tools, best practices. </li></ul></ul><ul><ul><li>Six Sigma – Use these in Six Sigma initiatives., </li></ul></ul><ul><ul><li> - either Black Belt or people who use it. </li></ul></ul><ul><li>3) Transfer of Best Practices: </li></ul><ul><li>Knowledge Management - Involves facilitated sharing & transfer of knowledge. </li></ul><ul><li> - Tacit knowledge – unit to unit inside an organization. </li></ul><ul><li>Six Sigma - It is to be used to save the cost of not knowing , </li></ul><ul><li> the duplication, waste and mistakes of the past. </li></ul><ul><li> </li></ul>
  15. 15. Slide 15/23 <ul><li>Approaches to Six Sigma and Knowledge Management: </li></ul><ul><ul><li>4) Voice of the Customer: </li></ul></ul><ul><ul><li>Voice of the Customer in DFSS (Design for Six Sigma) is also a potential area for </li></ul></ul><ul><ul><li>Collaboration of ideas. </li></ul></ul><ul><ul><li>DFSS – Knowledge of – Customer Centric Requirements – a Key Input. </li></ul></ul><ul><ul><li>5) Example: </li></ul></ul><ul><ul><li>- Compaq (HP) – warranty team applied Six Sigma approach to reduce defects. </li></ul></ul><ul><ul><li>- Result – Over the 1 st year - $18 million reduction in warranty cost. </li></ul></ul><ul><ul><li>- Difficulty in Implementing across functions. </li></ul></ul><ul><ul><li>- Creation of CoP (Communities of Practice). </li></ul></ul>
  16. 16. Slide 16/23 Knowledge Management : An Overview & Details Case Study. Six Sigma : An Overview and Details Conclusion. Bibliography. Introduction Interface Bet. Six Sigma and Knowledge Management.
  17. 17. Raytheon’s application of Six Sigma & KM : - Company subscribe a unique approach to a six sigma and Knowledge Management application in organization. - Purpose : To Reduce Law Department Costs. - Focused – How we collected, analyzed, processed and disposed of Supplier & Vendors Bankruptcy notices across the company. - Team Building (R6) – consist representatives of Legal, Supply Chain Management and Outside Council. - it gives the data to analyze the root-cause-effect analysis. - Using Six Sigma Tools, the Group designed a Global process to be followed by all groups. Case Study Slide 17/23
  18. 18. Raytheon’s application of Six Sigma & KM : - designed a system to track the work flow & final resolution. - produce metrics to improve the process. - They understand how to use the knowledge of years of stored institutes data. - The Project not only deals with Data Repository. Results : - They discovered or create such a system i.e. 1) how data can be shared in real time. 2) Considering Document retention policies. 3) Representatives of departments come to take decision. 4) Company look Technology not only as improvement solution but supporting tool to measure phase where data needs to be collected and at control phase where metrics helps to track the results. 5) Company save & 5 million amount in one year. Case Study Slide 18/23
  19. 19. Knowledge Management : An Overview & Details Conclusion. Six Sigma : An Overview and Details Bibliography. Introduction Interface Bet. Six Sigma and Knowledge Management. Case Study. Slide 19/23
  20. 20. Slide 20/23 Conclusion: Every Fad come and go but the power of Six Sigma and its systematic approach and the power of Knowledge Management are probably not come and go. The problems, issues and opportunities in organizations are not about reducing defects; they are about to responding new opportunities, using the voice of the Customer Knowledge. Both Six Sigma and Knowledge Management tools when applied altogether, gives an effective reduction in defects and quality process applied through the organization. Conclusion.
  21. 21. Slide 21/23 Knowledge Management : An Overview & Details Bibliography. Six Sigma : An Overview and Details Introduction Interface Bet. Six Sigma and Knowledge Management. Case Study. Conclusion.
  22. 22. Slide 22/23 Bibliography: 1) www.google.com 2) Knowledge Management – Ratanaja Gogula 3) www.raythons.com 4) Study Material. Bibliography.
  23. 23. <ul><li>THANK YOU </li></ul>Slide 23/23 PRESENTED BY: Sachin M. Gadekar

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