Lean Six Sigma Trends & New Applications SIX SIGMA- DMAIC ... 1. ... Is Six Sigma only for Quality Professionals? Department ALL Managers

Lean Six Sigma Trends

& New Applications

Whitehall Management Consultingwww.whitehall.com.ph

“We Train & Transform”

Rex Jayson M. TuozoCertified Lean Six Sigma Master Black Belt

Certified Industrial Engineer

Certified PROSCI Change Management Practitioner

Lean Six Sigma | Project Management | Innovation | Strategy | Sales & Marketing | Human Capital Management

Objectives

1. Lean Six Sigma Simply Explained

2. Trends in Lean Six Sigma

3. Six Sigma Salary Survey and

Six Sigma ROI: Project Cost Savings

2 www.whitehall.com.ph

Lean Six Sigma Simply Explained

3 Lean Six Sigma | Project Management | Innovation | Strategy | Sales & Marketing | Human Capital Management

4 www.Whitehall.com.ph

SIX SIGMA BOAT

4 www.6sigmaPH.com

• xx

4 www.6sigmaPH.com

Process Life Cycle


•Process Metrics Monitoring (BSC)

•Ops & Financial Risks Audits

•Business Continuity Plan

•Career Lattice/ Succession Plan

•5S Program

1. PDCA (Quick improvements)

2. LEAN SIX SIGMA- DMAIC

(recurring problems)

3. IT Systems Enhancements

(Systems/ Business Analysis)

•Policies and Procedures Management

•Process Mapping

•Resource Planning

•Metrics Development (VOC->CTQ)- BSC

•Setting up of Ops and Financial Risks/

Control

•Design for Six Sigma

2. Process Management

1. Process Design

3. Process Improvement

FAQs about Lean Six Sigma Certification


http://slidemodel.com/templates/six-sigma-belts-powerpoint-template/

1. What are Certification Belts in Lean Six Sigma?



2. How do I earn a Lean Six

Sigma Certification?

1) Attend a training program

2) Pass written & practical exams

3) Complete an actual process

improvement project

http://halalfocus.net/wp-content/uploads/2014/05/question-mark-nothing.jpg



3. Is there an Central Certifying Body in

Six Sigma? NONE

Who certifies then? The RISK/S?

ISO 13053:2011-

Six Sigma

IASSC Council of Six Sigma

X X X

Trends in Lean Six Sigma

9 Lean Six Sigma | Project Management | Innovation | Strategy | Sales & Marketing | Human Capital Management

The Changing “Big Picture”

• The interrelated

components

are constantly

changing- and

could be

changing at

different rates

10

www.whitehall.com.ph

MACROENVIRONMENT

INDUSTRY

COMPANY

DEPARTMENT

YOU

Clock Starts Ticking on ASEAN Integration


December 31, 2015 (Thursday) —the

Association of Southeast Asian Nations

(ASEAN) will announce the creation of the

Asean Economic Community (AEC)

$2.4

Trillion

GDP

630

Million

People

http://www.mckinsey.com/insights/public_sector/understanding_asean_seven_things_you_need_to_know

$260

Billion

GDP

100

Million

People

10 as 1

ASEAN Integration Challenges


1. Free flow of goods

2. Free flow of services

3. Free flow of investment

4. Free flow of capital5. Free flow of skilled labor

http://mb.com.ph/asean-2015-challenges-and-opportunities/



TREND #1

MANUFACTURING SERVICES

http://www.fancyicons.com/free-icons/108/point-of-

interest/png/256/factory_yellow_256.png

http://www.fancyicons.com/free-icons/108/point-of-

interest/png/256/factory_yellow_256.png

WantNeed



http://www.veinteractive.com/sites/default/files/images/Homer%20Simpson%20Instant%20Gratification.jpg

TREND #2 Instant Gratification:

Projects length reduced

Supported by IT improvements



TREND #3 Six Sigma Curriculum reduced

driven by need for instant

gratification of Executives

Shorter training days = lesser quality?

NO. Why? There are 3 Reasons:



TREND #4

Expert FacilitatorsExpert in Statistics

ServicesManufacturing

Engineers, Statisticians, Technical Non-technical, non-math majors

SHIFT Six Sigma Practitioners

Thank you



TREND #5

Kotter’s 8 Step Model

Influencer 6 sources of influence

Kurt Lewin’s Model

Bridges’ Transition Model

McKinsey 7S Model

Etc.



Six Sigma for Non ProfitTREND #6

Ethiopia – RecruitmentTime to hire new staff: 130 to 41 days down 68%

Rwanda – ProcurementInternal time to procure goods: 27 to 14 days down 48%

Kenya – ConstructionTime do procure and drill boreholes: 174 to 64 days down 63%

South Sudan – HR/FinanceTime to prepare payroll: 30 to 8 days down 73%

Burundi – ProcurementCost to procure a bundle of goods: $459K to $319K down 30%

Uganda – FinanceInvoice payment requests with errors: 40% to 4% down 90%

East Africa Region – UnderspendingContributed to reduced underspend: 9% in FY12 to 5% in FY13: down

44%Procurement

Reduction of A/P Average Processing Time

from 64 to 22 days

Reduction of defects from 44% to 19%



Six Sigma for SMEsTREND #7

J.A.M Enterprise

Wet and Dry Goods distributor based in Laguna.

The delivery of goods in Laguna area isn’t meeting the

scheduled time requirement which resulted to delivery

issues, customer dissatisfaction and costing P200k-450k

monthly.

GOAL STATEMENT: To reduce the number of late

deliveries from 33% to 5% by July 2015



TREND #8

Integrating Six Sigma in Undergraduate

and Graduate Schools



Japanese Manufacturing Companies

TREND #9

http://upload.wikimedia.org/wikipedia/commons/thumb/6/67/Six_sigma-2.svg/2000px-Six_sigma-2.svg.png

http://thumbs.dreamstime.com/z/business-man-top-steps-stair-over-white-background-35591359.jpg

Lean, Kaizen, TPM



TREND #10

Is Six Sigma only for Quality Professionals?

Department

ALL ManagersIT, Finance, HR, Procurement, Logistics,

Operations, Planning, Security, Training,

Customer Service, everyone!

NO. SHIFT Six Sigma Practitioners



Not a TREND but a wish

What if we have Lean Six Sigma:

National & Local

Government Units?

Six Sigma Salary Survey in PH& Six Sigma ROI

24Lean Six Sigma | Project Management | Innovation | Strategy | Sales & Marketing | Human Capital Management

PH Six Sigma Salary Survey 2015

Is there a significant difference between

Salary of Green Belt vs Black Belt in PH (2012 - 2015)?


The difference between Salary of Green Belt and Black Belt is SIGNIFICANT

Green Black

Average P77,577.00 P148,818.00

Median 80,000.00 150,000.00

Minimum 28,000.00 87,000.00

Maximum 180,000.00 260,000.00

n 54 45

P-Value = 0.000

Salary (Base Pay)_Black BeltSalary (Base Pay)_Green Belt

250000

200000

150000

100000

50000

0

Data

Boxplot of Salary (Base Pay)_Green Belt vs Black Belt

Two-Sample T-Test and CI: Salary (Base

Pay)_Green , Salary (Base Pay)_Black

Diff. Ave. 71,241


Lean Six Sigma Green Belt Salary 2013 vs 2015

Is there a significant difference (increase/ decrease)?


Salary (Base Pa_Green Belt-2015Salary (Base Pa_Green Belt-2013

200000

150000

100000

50000

Data

Boxplot of Salary (Green Belt-2013 vs Green Belt-2015)

No significant difference between Green Belt salary 2013 vs 2015

2013 2015

Average P70,741.00 P 93,813.00

Median 76,500.00 90,000.00

Minimum 30,000.00 45,125.00

Maximum 180,000.00 180,000.00

n 38 16

P-Value = 0.107

Two-Sample T-Test and CI: Salary (Base Pa_Green

Be, Salary (Base Pa_Green Be

Ave. diff. 23,072


Lean Six Sigma Black Belt Salary 2013 vs 2015

Is there a significant difference (increase/ decrease)?


The difference between Black Belt salary 2013 vs 2015 is SIGNIFICANT

2013 2015

Ave P130,450.00 P 163,512.00

Median 125,500.00 166,034.00

MIN 87,000.00 97,000.00

MAX 250,000.00 260,000.00

n 20 25

P-Value = 0.009

Two-Sample T-Test and CI: Salary (Base

Pa_Black Be, Salary (Base Pa_Black Be Salary (Base Pa_Black Belt-2015Salary (Base Pa_Black Belt-2013

275000

250000

225000

200000

175000

150000

125000

100000

Data

Boxplot of Salary (Base Pa_Black Belt-2013, Salary (Base Pa_Black Belt-2015

Average UP 25.34% in 2 years



Salary of Black Belt in Metro Manila vs Outside Metro Manila?


There is no significant difference between Salary Black Belt in Metro Manila vs Outside Metro Manila

M. Mla. Outside

AVE P150,264.00 P134,000.00

Median 150,000.00 140,000.00

MIN 87,000.00 100,000.00

MAX 260,000.00 156,000.00

n 41 4

P-Value = 0.310

Salary (Ba_Black Belt-Outside MSalary (Ba_Black Belt-Metro Man

275000

250000

225000

200000

175000

150000

125000

100000

Data

Boxplot of Black Belt Salary (Metro Manila vs Outside Metro Manila)



Salary of Green Belt in Metro Manila vs Outside Metro Manila?


There is no significant difference between Salary Green Belt in Metro Manila vs Outside Metro Manila

M. Mla. Outside

AVE P80,482.00 P60,875.00

Median 80,000.00 59,000.00

MIN 28,000.00 31,000.00

MAX 180,000.00 100,000.00

n 46 8

P-Value = 0.121

Salary (Ba_Green Belt-Outside MSalary (Ba_Green Belt-Metro Man

200000

150000

100000

50000

Data

Boxplot of Green Belt Salary (Metro Manila vs Outside Metro Manila)



Salary of Black Belt Regular Shift vs Shifting?


There is no significant difference between Salary Black Belt in Regular Shift vs Shifting

Regular Shifting

AVE P153,423.00 P132,700.00

Median 150,000.00 115,000.00

MIN 87,000.00 90,000.00

MAX 260,000.00 250,000.00

n 35 10

P-Value = 0.250

Salary (Bas_Black Belt-ShiftingSalary (Base_Black Belt-Regular

275000

250000

225000

200000

175000

150000

125000

100000

Data

Boxplot of Black Belt Salary (Regular Shift vs Shifting)



Salary of Green Belt Regular Shift vs Shifting?


There is no significant difference between Salary Green Belt in Regular Shift vs Shifting

Regular Shifting

AVE P71,706.00 P84,917.00

Median 59,250.00 80,000.00

MIN 28,000.00 180,000.00

MAX 180,000.00 33,000.00

n 30 24

P-Value = 0.214

Salary (Bas_Green Belt-ShiftingSalary (Base_Green Belt-Regular

200000

150000

100000

50000

Data

Boxplot of Green Belt Salary (Regular vs Shifting)

Six Sigma ROI: Project Cost Savings

Green Belt vs Black Belt Project ANNUALIZED Cost Savings

*Projects without cost savings were excluded

*2008-2015

*Banking, Telco, IT, BPO, Call Center, Health Care, Services, Finance, etc.


Green Black

AVERAGE P2,660,624 P4,193,263

Median 652,884 2,101,818

MIN 13,462 32,220

MAX 21,054,600 22,873,104

n 163 44

Final Question


Will Lean Six Sigma stay?

https://encrypted-tbn3.gstatic.com/images?q=tbn:ANd9GcQ1CVq9MiKICliMH1bu1TLkpbdFeCVeAoLd_cSlJ1Y2KylnsM-o

Rex Jayson Tuozo

Certified Six Sigma Master Black Belt

rex@whitehall.com.phWhitehall Management Consulting

Lean Six Sigma Trends & New Applications SIX SIGMA- DMAIC ... 1. ... Is Six Sigma only for Quality Professionals? Department ALL Managers

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