QDF 6sigma Forum Sep06

Quality Discussion ForumAgilent Restricted

September 2006Page 1

Six Sigma Overview Quality Discussion ForumSeptember 2006

Peter DodgeSix Sigma Core Team

Page 2


September 2006

Agenda

• Opening comments/introductions (Ed)

• Summary of the Six Sigma Model (Peter)

• Relationship of Six Sigma and Business Management Systems (Peter)

• Agilent’s Deployment (Peter)

• Results/Lessons Learned (Peter)

• Questions/Comments (Peter)

• Wrap Up/Adjourn (Ed)

Page 3


September 2006

Acknowledgements

Materials for this presentation have been provided by:

Six Sigma® is a registered trademark and service mark of Motorola.

Page 4


September 2006

The Keys to Successful Business Improvement:

• Six Sigma principles of “top down” deployment.

• Integrated approach to leading improvement efforts.

• Driving results through engaged teams.

• Six Sigma analytic tools and a disciplined, standardized methodology for their use.

It’s all about delivering business results.

Achieving sustainable business improvement requires integrated team efforts linked to business priorities.

Page 5


September 2006

ManagementSystem

ManagementSystem

The Six Sigma Maturity Model

MethodologyMethodology

MetricMetric

• Managing process variation• Monitoring KPIs• Driving continuous improvement

• Team based problem solving• Consistent use of DMAIC model• Trained resources working in projects• Project selection and prioritization process

• Six Sigma drives strategy execution• Leadership sponsorship and review• Metrics driven governance process• Engagement across the organization

Page 6


September 2006

Six Sigma as a Management System

• ISO9000 Quality Mgmt Principles

• Customer Focus

• Leadership

• Involvement of People

• Process Approach

• System Approach to Management

• Continual Improvement

• Factual approach to decision making

• Mutually beneficial supplier relationships

• Six Sigma’s Parallels

• VOC & Critical to Quality Rqmt’s

• Group and Project Champions

• White, Green, & Black Belts

• DMAIC, DMADV

• Governance

• Breakthrough projects

• Robust statistical and financial analyses

• Joint Agilent-supplier projects as part of our Six Sigma Roadmap

Page 7


September 2006

Six Sigma as a Management System

ScorecardScorecardGoalsGoals

Which activities will enable Which activities will enable you to achieve the Goals?you to achieve the Goals?

YY = = (1x (1x1 1 ,, 10x10x22 , 2x, 2x3 ... 3 ... ))

On-going Sponsorship and

Review

On-going Sponsorship and

Review

Six Sigma Project

Selection

ƒ

Page 8


September 2006

Customer: Create Loyal Customers

Financial:Capture the

Value

Markets:Focus to

Win

Employees:Engage to Win

Big Y’s (FY 06

Priorities)

Little y’sw/ metrics

Vital XProjects

(= Six SigmaProjects)

Example: Translating Strategic Objectives Into Critical Six Sigma Projects at LSCA

• Customer relationship program

• Customer contact experience

• Business processes• Customer

Satisfaction: 8.2• Customer Loyalty:

Industry-leading

• IBS profitability• Sources of value of

SiG, CBC and SSI acquisitions

• >17% OP• >30% ROIC

• Employee engagement with customers

• Employee feedback on Sr. leaders

•70% favorable on customer-centricity

•Top quartile• 80% favorable on accountability

• New business growth for High-end LC/MS, Genomics, and LRM

• Core business share gains

• Market share: 23% (+1%)

• Product Supportability

• Warranty Conversions

• Customer Issue Resolution System

• Gold Quad Scrap• GC Column Scrap• Service Inventory

Mgmt• Eagle Quad Process

Improvement• SOX Process

Improvement• 3rd Party Sales

• 6S Champion, BB and GB training

• 6S Executive Training

• Custom Microarrays Made Easy

• EMEA Demand Generation

Page 9


September 2006

DMAICThe Process Improvement Roadmap

1.0 Define

Opportunities

2.0 Measure

Performance

3.0 Analyze

Opportunity

4.0 Improve

Performance

5.0 Control

Performance

What is important?

How are we doing?

What is wrong?

What needs to be done?

How do we guarantee

performance?

Page 10


September 2006

DMAIC Deployed - The Actual Project Lifecycle

1.0 Define

Opportunities

2.0 Measure Perform

ance

3.0 Analyze Opportu

nity

4.0 ImprovePerform

ance

5.0 ControlPerform

ance

How do we assure our

ROI?

LeverageImprove-

ment

Where can we extend the

gains?

6.0Monitor

Page 11


September 2006

Meeting Customer and Business Objectives

Project Objectives CCR’s

CustomerIssues

________

________

________

_________

________

________

________

_________

VOC________

________

________

_________

VOB________

________

CTP’s________

________

BusinessIssues________

________

CBR’s________

________

CTQ’s________

________

VOB - Voice of the BusinessCBR - Critical Business RequirementsCTP - Critical to the Process

VOC - Voice of the CustomerCCR - Critical Customer RequirementsCTQ - Critical to Quality



Six Sigma® is a registered trademark and service mark of Motorola.

Agilent Technologies’Six Sigma Deployment

Page 13


September 2006

What Six Sigma is to Me

“A fundamental management process

where we have a systematic approach to

solving problems.”

Page 14


September 2006

?Interaction: Customer Satisfaction

Today’s Profile

TechnologyLeadership

CustomerIntimacy

Operational Excellence

Good

Excellent!Excellent!

Page 15


September 2006

Agilent’s FY05 Results

~ 50%Customer,Quality or

New Product Introductions

~ 35% Cost / inventory /

supplier reductions and

yield improvements

~ 15% Other process improvements

~ 90 Projects

Across GIO functions and

business groups

Financial Benefits:$1.2 M Hard $$8.3M Soft $



Launch ManageSustain & Grow

The way we work

Agilent’s Six Sigma Roadmap:Enabling a fundamental management process that anticipates and meets customers’ needs, and provides a data driven approach to solving problems.

FY05 – FY06 FY06 - FY07 FY07 - FY08 FY09 & beyond

• Establish vision

• Develop Launch Plan

• Select external provider

• Develop 1st wave Black Belts & Champions

• Establish financial benefits guidelines

• Introduce White Belts

• Complete first and second Black Belt projects

•Introduce Green Belts

• Establish management metrics and governance process

• Align project selection with businesses’ strategic direction

• Implement project tracking system

•Enable learning organization via Belt and Champion Forums

• Establish formal recruitment and career progression for GBs, BBs & MBBs

• Introduce Design for Six Sigma (DFSS), Lean concepts

• Extend projects internally and externally (with customers and suppliers)

• Extend skills development for Belts and Champions

• Standardize quarterly management reviews at business/corporate levels

• Anticipate customer needs, fueling growth

• Assure Six Sigma is a core competency in the management system

• Integrate Six Sigma into the SPR process

• Following our success, suppliers implement Six Sigma

• Implement Six Sigma as a key methodology for achieving results for our shareholders, customers and employees

Format adapted from: Leading Six Sigma by Snee & Hoerl (2003)

Version: Sept 8, 2006

Page 17


September 2006

How we’re doing itProgram details

FY07 Schedule

51 Black Belts FY05

207 Green Belts FY06

162 Champions

November - December: Champion training

21

72 81

20 Black Belt Candidates FY06

8

AMERICAS

16

50 42

4

EUROPE

14

63 39

8

ASIA

As of August 31, 2006 9,734 Certified White Belts at Agilent

235 Green Belts FY06

60 Champions

37 Black Belt Candidates FY06

FY05 & 06

FY07

December - May: Black Belt trainingDecember - May: Green Belt training

Page 18


September 2006

What Have We Learned?

Things to Avoid

• “Big Bang” Projects

• “Belt Factories”

• Keeping score via project count

• Working the Trivial Many

• “Try Harder” Improvements

AVOID

AVOID

AVOID

AVOID

AVOID

AVOID

AVOID

AVOID

AVOID

AVOID

AVOID

AVOID

Page 19


September 2006

What Did We Learn?

Things to Copy

• Dedicated resources: Champions and ‘Belts

• Focused projects achievable in 3 - 6 months

• Apply Six Sigma methodology to all functions and departments

• Build organizational competence

• Fully engaged senior management

• Focus on the methodology and establishing rigor

COPY

COPY

COPY

COPY

COPY

COPY

COPY

COPY

COPY

COPY

COPY

COPY

Page 20


September 2006

How does a Business ensure success?

1. Be familiar with expectations and responsibilities.

2. Governance!

– It’s the method of translating the Champion’s responsibilities into action

– It’s ACTIVE management to ensure Six Sigma goals and objectives are achieved.

– This means monitoring and advancing:

• Black Belt and Green Belt projects

• Financial benefits

• Leadership behaviors that create the desired change

• Desired culture

Page 21


September 2006

Roles & Responsibilities

CATEGORY LEVEL JUMP

START

DEFINE MAIC PROJECT REVIEW

MGMT. RVW

LEVERAGE /

MONITOR

Executive Leadership Team

CEO Direct Repor

ts

Senior Sponsor,Group Champion

Sr.Manager

ProjectChampion

Int.

Manager

Black Belt Mgr /

Prof Staff

Financial Analyst Prof Staff

Green Belt Mgr /

Prof Staff

- Primary responsibility

Page 22


September 2006

Six Sigma GIO & Business Champions

Agilent Technologies

Electronic Measurements Group

John Herniman

Agilent Laboratories – Martin Neil

Bio-Analytical Measurement

ElectronicMeasurement

General CounselPat Barrett

Information TechnologyRich Kellen

Director of Agilent Labs

Workplace ServicesTBD

Customer & QualityJani Thompson

Corporate FinanceAnne Myong

Global SourcingAnagha Kale

WBUJohn Prouty

Revision Date: 7 September 2006

WWFO Roberta Lycette

Finance & AdministrationAnne Myong

ATIVenky Valluri

Human ResourcesTBD

EIBUAznul Shahrim

WCSSMartin Wisser

Life Sciences and Chemical Analysis

Keith Price

CASUNancy AdamsLSSURenee Olson

WWOF Kristin Giffin

WWSMSDiana Fandel

CSSDNeil NoronhaSSD Mary Pat Knauss

NDSTBD

What is a GIO & Business Champion

Provide focus, leadership

and commitment. Influence peers

in the application of Six Sigma.

Fight for cause of Black Belts &

remove barriers.

Page 23


September 2006

Agilent’s Six Sigma Resources• Core Team

• Jani Thompson, Director

• Peter Dodge, Program Manager

• Paul Renfrew, Education & eRoom support

• Chris Grantz-Carter, EMG Program Manager

• Vickie Eckert, LSCA Program Manager

• Websites, Tools & Training Materials

• Agilent Six Sigma: http://sixsigma.quality.agilent.com/index.asp

• EMG Six Sigma: http://emg.communications.agilent.com/quality/education/sixsigma.asp

• LSCA Six Sigma: http://lsca-quality.business.agilent.com/six_sigma/index.asp

• EMG Financial Calculation Template (FaCTS) Training slides &…

• EMG Financial Calculation Template (FaCTS)

http://sixsigma.quality.agilent.com/index.asp

http://sixsigma.quality.agilent.com/index.asp

http://emg.communications.agilent.com/quality/education/sixsigma.asp

http://lsca-quality.business.agilent.com/six_sigma/index.asp

http://epsg.communications.agilent.com/quality/education/sixsigma.asp

http://epsg.communications.agilent.com/quality/education/Six%20Sigma%20Savings%20Calculation%20Template_12%2013%2005.xls





Q & A

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QDF 6sigma Forum Sep06

Documents

quality page

sigma roadmap page

sigma deployment

sigma principles

sigma core team page

agilent technologies

sigma model peter relationship

priorities customer