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Six Sigma Presentation

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A research project on Future of Six Sigma and how it aligns with the innovative strategies at a company

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Six Sigma Presentation

  1. 1. Contemporary Organizations and the Future Six Sigma / Innovation Facet<br />SalilDeshmukh<br />John Gastreich<br />Justin Frey<br />Prem Anand Mathiyalagan<br />
  2. 2. 2<br />Agenda<br />Problem statement<br />Recommendations<br />Innovative companies<br />Links between Six Sigma and innovation<br />Integrated Enterprise Excellence<br />Weighted criteria matrix <br />
  3. 3. Problem Statement<br />Future<br />of<br />Six Sigma<br />Growth<br />versus<br />Performance<br />3<br />How to find a balance between efforts to grow the business and the diligence needed to maintain high performance operations?<br />Which Six Sigma approach or evolution is most appropriate for meeting future business challenges over the next decade?<br />
  4. 4. Scope<br />Within Scope<br />Out of Scope<br />Research next-generation Six Sigma and continuous improvement practices. <br />Compare and contrast how industry front-runners apply six sigma in terms of innovation and growth.<br />Identify qualitative metrics for performance assessment and for rewarding/incentivizing.<br />Perform analysis of as-is RMS Six Sigma methodologies.<br />Perform primary research of direct competitors to RMS.<br />Provide recommendations for a roadmap to move from as-is RMS methodologies to to-be RMS methodologies.<br />4<br />
  5. 5. Research Methodology<br />Primary research: interviews with SMEs<br /><ul><li>Dr. Pamela Slaten– Operations
  6. 6. Dr. Kenneth Smith – Innovation
  7. 7. Dr. Sudha Ram – Business Intelligence
  8. 8. Larry Dyer – Six Sigma
  9. 9. Thomas Pyzdek – Six Sigma</li></ul>Secondary research<br /><ul><li>Trade magazines
  10. 10. Scholarly articles
  11. 11. Books
  12. 12. Others (company websites, industry data)</li></ul>5<br />
  13. 13. Recommendations<br />Do NOT use Six Sigma for innovation activities directly<br />Identify processes/methodologies used to support innovation and other activities; use Six Sigma to improve such processes<br />Innovation Maturity Model<br />Next generation organizational behaviors<br />Instead of applying Six Sigma in silos, use it for the processes of the entire organization <br />6<br />
  14. 14. Innovative companies<br />Justin<br />7<br />
  15. 15. Innovative Company Rankings<br />8<br />
  16. 16. Most Innovative Companies<br />9<br />
  17. 17. Six Sigma in Innovation<br />Of the most innovative companies, only GE couples Six Sigma with Innovation<br />Reasons<br />Stifles creativity<br />Lowers employee morale<br />Only used for process improvement<br />10<br />
  18. 18. Qualities of Innovative Companies<br />Attitudes<br />Willingness to cannibalize assets <br />Future focus <br />Tolerance for risk<br />Practices<br />Empowerment of product champions<br />Incentives for enterprise<br />Internal markets <br />11<br />
  19. 19. Recommendations<br /><ul><li>Do not use Six Sigma for Innovation Activities directly</li></ul>Identify processes/methodologies used to support innovation and other activities; use Six Sigma to improve such processes.<br />Innovation Maturity Model<br />Next generation organizational behaviors<br />Instead of applying Six Sigma in silos, use it for the processes of the entire organization <br />12<br />
  20. 20. Methodologies and tools<br />Prem Anand<br />13<br />
  21. 21. Is there an indirect connection between Six Sigma & Innovation?<br />14<br />
  22. 22. Yes<br />15<br />
  23. 23. Indirect Benefits<br />Organization are undergoing significant changes<br />Emphasis on innovation<br />Proposed methodology<br />Use standard framework to manage innovation<br />Identify processes<br />Use Six Sigma to improve processes<br />Hence Six Sigma can be used indirectly<br />16<br />
  24. 24. Frameworks and Models<br />Innovation Network Framework<br />Framework used to manage innovation within a large organization<br />Innovation Maturity Model<br />Model to assess the maturity level of the innovation process within an organization<br />17<br />
  25. 25. Innovation NetworkFramework<br />Network with internal and external groups to generate ideas<br />Identify objectives and define metrics<br />Objectives and metrics<br />Business objectives<br />Structural objectives<br />Activity metrics<br />Behavioral metrics<br />Innovation Network Metrics<br />Customer innovation metrics<br />Case Study – P&G<br />18<br />
  26. 26. Case Study<br />19<br />
  27. 27. General Innovation Management<br />Choose appropriate innovation strategy<br />First-mover strategy<br />Fast-follower strategy<br />Conservative slow-follower strategy<br />Alternative innovation strategy<br />Focus innovation on a business imperative<br />Define an innovation process model<br />Organize to accomplish innovation<br />Innovation Maturity Model<br />20<br />
  28. 28. Innovation Maturity Model<br />21<br />
  29. 29. Behaviors<br />Highly Collaborative Environment<br />22<br />
  30. 30. Next Generation Behaviors<br />3 Factors leading to the revolution<br />Web 2.0<br />Net generation<br />Need for uniquely qualified minds<br />Characteristics of the Net-Gen<br />High technology adoption<br />Creativity<br />Social connectivity<br />Diversity<br />Ideagoras<br />Marketplace for ideas, innovation and uniquely-qualified minds<br />Wiki Workforce (Highly collaborative)<br />Collaborative Economy<br />Business – Web<br />More the collaboration better the results<br />23<br />
  31. 31. Boeing 787<br />…Boeing executives concluded that mass collaboration was the only way to create the kind of cheaper, more fuel-efficient jetliner that airlines want…<br />24<br />
  32. 32. Sentiment Analysis<br />Also known as Opinion Mining<br />Determines opinion polarity on a topic<br />Quantifies the qualitative (sentiment)<br />First used for movie reviews<br />Used heavily in marketing analysis<br />Can be used to quantify opinion surveys<br />Commercially available sentiment analysis software<br />25<br />
  33. 33. Recommendations<br /><ul><li>Don’t use Six Sigma for Innovation Activities directly; it stifles creativity.
  34. 34. Identify processes/methodologies used to support innovation and other activities; Use six sigma to improve such processes.</li></ul>Innovation Maturity Model<br />Next generation organizational behaviors<br />Instead of applying Six Sigma in silos, use it for the processes of the entire organization <br />26<br />
  35. 35. Integrated Enterprise Excellence<br />Salil<br />27<br />
  36. 36. Integrated Enterprise Excellence<br />Developed by Forrest W. Breyfogle III, the President and CEO of Smarter Solutions, Inc<br />Uses the familiar Six Sigma DMAIC road map not only at the project level, but at the enterprise level as well. <br />28<br />IEE<br />E - DMAIC<br />P - DMAIC<br />Enterprise Level Roadmap<br />Project Level Roadmap<br />Integrated Enterprise Excellence<br />* DMAIC = define, measure, analyze, improve, control <br />
  37. 37. The Need<br />Where Lean Sigma Falls Short <br /><ul><li>Just another Problem Solving System
  38. 38. Steering committee aims at process improvement and providing certifications
  39. 39. Low hanging fruit gets selected as a goal
  40. 40. Most process improvement techniques often occur in silos
  41. 41. Benefits are not propagated to executive level
  42. 42. In a financial crisis, Lean Six Sigma programs are often downsized</li></ul>29<br />
  43. 43. Integrated Enterprise Excellence (IEE)<br />An enterprise system that provides structure for integrating innovation with analytics<br />30<br />Integrated Enterprise Excellence<br />Six Sigma<br />Balanced Score Cards<br /> Lean <br />
  44. 44. How it Works<br />31<br />
  45. 45. How it Works<br />Step 1: Describe a vision and a mission<br />Step 2: Describe the value chain<br />Step 3: Analyze the enterprise<br />Step 4: Establish goals for satellite-level metrics<br />32<br />Define<br />Measure<br />Analyze<br />Analyze<br />
  46. 46. How it Works<br />Step 5: Create strategies<br />Step 6: Identify high-potential improvement areas<br />Step 7: Identify and execute projects<br />Step 8: Assess the project’s final impact on enterprise goals<br />Step 9 : Maintain the gain<br />33<br />Analyze<br />Analyze<br />Improve<br />Improve<br />Control<br />
  47. 47. How it Works<br />34<br />
  48. 48. Recommendations<br /><ul><li>Do not use Six Sigma for Innovation Activities directly
  49. 49. Identify processes/methodologies used to support innovation and other activities; Use six sigma to improve such processes</li></ul>Innovation Maturity Model<br />Next generation organizational behaviors<br /><ul><li>Instead of applying Six Sigma in silos, use it for the processes of the entire organization </li></ul>35<br />
  50. 50. Weighted criteria analysis<br />John<br />36<br />
  51. 51. Options for Recommendations<br />Passed<br />Failed<br />Keep Six Sigma - Continue using Six Sigma, improve the image of the Six Sigma unit, 1% of all RMS employees<br />Increase Collaboration, Innovation Network Model, Crowd sourcing - Increase collaboration inside and outside the company<br />Do not Integrate Six Sigma and Innovation – Keep separate<br />Implement Integrated Enterprise Excellence (IEE) - Or other forward thinking Six Sigma derived methodology<br />Integrate 'Bike Shop' – i.e. Skunk Works, into the mainstream activities of RMS<br />Hire Consultants - Specializing in Six Sigma and technology, e.g. Thomas Pyzdek, Bain Performance Improvement<br />End of Management - Pyzdek, eliminated because RMS is not facing a crisis<br />Outsource Six Sigma - Only core competencies should be kept in house<br />Guidance and Collaboration with other Raytheon Six Sigma Groups - RMS is not the only division of Raytheon with Six Sigma teams<br />Further Six Sigma Education - Improper education is said to be one of the leading causes of 6S failures<br />Race the Red Queen - Implement adaptive approach, i.e. keep your finger on the pulse of 6S to adapt quickly and take advantage of change<br />37<br />
  52. 52. Criteria Selection Process<br />Raytheon’s Vision, Strategy, Goals, and Values<br />Admiration<br />Respectability<br />Knowledge (leveraging)<br />Broadening focus<br />Customer focus<br />International growth<br />Revenue growth<br />Improved cash flow<br />Predictability<br />Productivity<br />World class employees<br />Performance<br />Conversations with Daniel Kuz and Dr. Jennie Campos<br />Feasibility<br />Cost<br />Innovativeness <br />Long-Term Revenue Growth<br />Short-Term Revenue Growth<br />Brand Image of Six Sigma / Raytheon<br />Employee Satisfaction<br />Values & Behaviors Next Gen Six Sigma Organization<br />Speculative<br />38<br />
  53. 53. Criteria<br />Feasibility<br />Can this option be implemented?<br />Cost<br />Cost to implement; cost/benefit ratio<br />Innovativeness<br />Contribution to Raytheon’s innovativeness<br />Long-Term Revenue Growth<br />Basic need to keep investors happy<br />Short-Term Revenue Growth<br />Basic need to keep investors happy<br />Brand Image of Six Sigma / Raytheon<br />Per company Vision & 6S unit’s needs<br />Employee Satisfaction<br />Per company goals, mission, values & 6S unit image<br />39<br />
  54. 54. Weighted Criteria Matrix <br />40<br />
  55. 55. Recommendations<br />Increase collaboration, innovation network model, crowd sourcing<br />Do NOT integrate Six Sigma with innovation<br />Implement Integrated Enterprise Excellence<br />41<br />
  56. 56. Next Steps<br />Whatever path is decided:<br />Get support from the top<br />Arrange sufficient funding<br />Incentivize employees to encourage change<br />42<br />
  57. 57. Questions<br />43<br />
  58. 58. Appendix<br />44<br />
  59. 59. Collaborators<br />University of Arizona MIS Master’s Project Team<br />Justin Frey<br />Prem Mathiyalagan<br />Salil Deshmukh<br />John Gastreich<br />MIS Faculty<br />Dr. David Pingry<br />RMS Reps<br />Daniel Kuz<br />Dr. Jennie Campos<br />RMS Special Guest<br />Tom Birdsall<br />45<br />
  60. 60. Example Metrics<br />46<br />
  61. 61. Other Sources<br />Myths<br />Myth No. 1: Innovation just happens.<br />Myth No. 2: Innovation only happens in R&D.<br />Myth No. 3: The best innovation comes from inside.<br />Myth No. 4: The more innovative ideas we generate, the better.<br />Myth No. 5: We have lots of smart people, so innovating will be no problem.<br />Innovation Culture<br />Establishing and benchmarking organizational culture<br />Sources<br />Five Myths of Innovation.pdf<br />the_innovation_culture_defin_156182.pdf<br />47<br />

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