Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved June 26, 2002 BEYOND SIX SIGMA: A HOLISTIC.

Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec

Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved June 26, 2002

BEYOND SIX SIGMA:

A HOLISTIC APPROACH TO IMPROVING BUSINESS RESULTS

Pete Robustelli

Executive Vice President

Six Sigma Qualtec, Inc.



• How Six Sigma has been Deployed• Key Elements• The Enterprise-wide Model• Differences

Agenda Overview



Meeting Management’s Expectations & Achieving Success

The “Vital Few”

X1 = Senior Executive commitment and involvement

X2 = Up front planning

X3 = Project selection that makes an impact on the bottom line of the business

X4 = Full-time “Best of the Best” Black Belts

X5 = Metric systems to track progress

Y = f(X) Y = f(X)



SSQ Six Sigma Approach

66

Infrastructure Champions Black Belt Green Belt Yellow Belts

Tools Measure

Analyze

Improve

Control



Key Elements

Apply MAICApply MAIC

Identify Core Identify Core ProcessesProcesses

Establish Process Establish Process Control SystemsControl Systems

Identify Identify Performance Performance GapsGaps

Define Mission and Vision Create Strategy Classify Core Processes and Enabling Processes Prioritize Focus Based on Strategy

Map Key Processes Determine VOC, VOB, VOE Requirements Establish Indicators

Establish Measurement Systems Determine Baselines and Targets Characterize Gaps Administrate PCS

Measure Analyze Improve Control



The Six Sigma Deployment Success Strategy: Five Workstreams

Initiative Planning

& Startup

Client is prepared to gain full benefits of Six Sigma

Executive Training &

Onboarding

Client Executives prepared

to lead and select projects

with impact

Employee Training & Onboarding

Client is reaping initiative benefits

Transition Training & Implementation

Client is prepared to train

future waves

Initiative & Project Management ActivitiesClient attains Self Sufficiency

& is Self Sustaining

Workstream #1

Workstream #2

Workstream #3

Workstream #5

Workstream #4



A successful six sigma A successful six sigma deployment requires a deployment requires a variety of sometimes variety of sometimes

opposing abilities to be opposing abilities to be successful!successful!

A successful six sigma A successful six sigma deployment requires a deployment requires a variety of sometimes variety of sometimes

opposing abilities to be opposing abilities to be successful!successful!

Three Dimensions of any Deployment

Behavioral

Technical

Strategic

Process

Tools

TacticalPro

blem-Solving

Management

Exp

erti

se



SSQ Enterprise-Wide Model to Performance Improvement



Enterprise-Wide Model to Performance Improvement

• Business Results: Understanding the economic relationship of process performance to overall business results.

• Customer Value Proposition and Value Chain: Maximize the customer value proposition through GAP analysis to identify key sources of pain.

• Process Management, Improvement and Design: Maximize the ability of your processes and people to deliver customer value through three key methodologies (Six Sigma, Lean and Process Management).

• Develop Leadership and Human Capital: Enterprise-wide development of human capital to enable on-going performance.



Engagement Activities

• Frame the Value Proposition– Customer's Customer

• Translate the Value Proposition into ACTIONS for Change– Create a deployment to achieve the business results

• Implement Change:– Process Management

• MAIC

• DFSS

– Leadership and Human Capital Development

• Partner for Growth– Review and adjust for continued value add



Business Results

• Engagement Activity:Frame the Value Proposition– Identify value enhancing opportunities focusing on

business results needed/expected– Assess and develop executive leadership’s

understanding of their roles and required activities for the DECISIONS that need to be made going forward.

– Identify and develop business performance metrics that matter.



Business Results

• Outcomes:– Definition and measurement of interventions

based on their impact to the business results the client values.

– Communication details as appropriate for the audience e.g., EVA at the executive level vs. project results at the BB or Team Member level.

– Value concept created for all levels.



Customer Value Proposition & Value Chain

• Engagement Activity:Translate the value proposition into actions for change.– Map value streams ands identify critical

organization and process relationships.– Identify or create organizational performance

metrics.– Design a DEPLOYMENT to maximize the value

proposition and value chain to achieve business results.



Customer Value Proposition & Value Chain

• Outcomes:– Identification of client's existing metrics linked to

their Customer Value Proposition.– Map of the client's Customer Value Chain identifying

relationships among organizational units, identification of core processes and likely process intervention areas impacting the Customer Value Chain.

– Linkage of solutions to the client's Business Results through their Customer Value Proposition and associated processes.



Six Sigma Process Management, Improvement & Design

• Engagement Activity:Implement Change– Develop middle and first line leadership.– Align organization goals vertically.– Align and develop the infrastructure.– Implement process management.– Align enabling processes– Implement process improvement



• Outcomes:– Improvement culture, tool, skill and knowledge transfer from SSQ to

client personnel through training and support of Process Management, MAIC, IMAIC, DFSS and Lean in context with the client's Customer Value Chain.

– Completed projects showing impact on the Customer Value Chain and economic return on intervention investments.

– Assessment of the people developmental gaps impacting the sustained implementation of the transferred improvement culture, tools, skills and knowledge.

– Process and infrastructure to effectively manage and leverage across the client's organization the results and impact of SSQ interventions.

Six Sigma Process Management, Improvement & Design



Develop Leadership & Human Capital

• Engagement Activity: Develop Leadership and Human Capital at all levels.– Initialization sessions for Executive and Senior

Management to align them on the strategies and tactics for achieving Business Results.

– Identify knowledge, skill, and ability gaps in front and middle management necessary to implement change.

– Extend and expand on current education and knowledge management content and tools.

– Develop and implement an education and training strategy.



Develop Leadership & Human Capital

• Outcomes:– Superior on-job performance of all

employees necessary to have appropriate return on intervention investments.

– Practical mechanism for maintaining human performance levels well beyond the time frame of initial implementation.



Partner for Growth

• Review and confirm the value of interventions in achieving business results.

• Partner with mutual strengths to expand the value proposition for both the client and SSQ.



Engagement Activities Contrasted

• Work Stream #1: Initiative Planning and Start-up (MAIC)

• Workstream#2: Executive Training (MAIC, Champion)

• Workstream #3: Employee Training (MAIC, DFSS)

• Workstream#4: Transition and Implementation

• Workstream#5: Sustained Initiative by Client (6 Sigma)

• Frame the Value Proposition: Customer's Customer

• Translate the Value Proposition into ACTIONS for Change: Create a deployment to achieve the business results

• Implement Change:– Process Management

• MAIC• DFSS

– Leadership and Human Capital Development

• Partner for Growth: Review and adjust for continued value add



SSQ Enterprise-Wide Model to Performance Improvement



Workstream #1 - Initiative Planning & Start Up

Initiative Planning & Startup

Client

Prepared to Gain Full Benefits of Six

Sigma

Workstream #1

1. Readiness Analysis

2. Policy Deployment

3. Six Sigma Training for Finance

4. Human Resources Planning

5. Communication Plan Development

6. Awareness Training Development

7. Corporate Project Selection

8. Initial Planning Session



Workstream #2 - Executive Training & On-Boarding

Executive Training &

Onboarding

Client

Executives Prepared to Lead and Select Projects With Impact

Workstream #2

1. Senior Executive Six Sigma Training

2. Leading Six Sigma Management Training

3. Champion Training and Project Selection



Workstream #3 - Employee Training & On-Boarding

Employee Training & Onboarding

Client

Reaping Program Benefits

Workstream #3

1. Black Belt

2. Green Belt

3. Yellow Belt

4. Design For Six Sigma



Workstream #4 - Transition Training & Implementation

Transition Training & Implementation

Client

Prepared to Train Future Waves

Workstream #4

1. Right to train, reproduce materials, receive updates, content revisions and change notices.

2. Train-the-Trainer

3. Transition Planning



Workstream #5 - Initiative / Project Management

Initiative & Project Management Activities

Client

Attains Self Sufficiency

& is Self Sustaining

Workstream #5

1. Account Management/Executive Coaching

2. Evaluation and Certification System

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved June 26, 2002 BEYOND SIX SIGMA: A HOLISTIC.

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