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Six Sigma Part 1 Implementation & Management Sampl e
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Six sigma

Sep 19, 2014

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A comprehensive training powerpoint that covers the six sigma in the workplace
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Page 1: Six sigma

Six Sigma Part 1 Implementation &

Management

Sample

Page 2: Six sigma

Building a 6σ Organization (4 of 14)

Why Six Sigma?– Six Sigma helps the organization

improve customer value and efficiency.

– Just a few of the major companies that have used Six Sigma are:• Motorola, GE, Allied Signal

– Six Sigma focuses on: customer requirements, defect prevention, cycle time reduction, cost savings, customers, shareholders, and employees.

Page 2www.readysetpresent.com

Page 3: Six sigma

Building a 6σ Organization (7 of 14)

Six Sigma vs. Three Sigma– There is a direct correspondence

between the quality levels and the “sigma levels” of performance.

– Companies operating at 3 or 4 sigma usually spend 25- 40% of their revenues fixing problems.

– Companies operating at 6 sigma usually spend less than 5% of revenues fixing problems.

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Page 4: Six sigma

Building a 6σ Organization (10 of 14)

Implementing Six Sigma– Leadership

– Communicates a vision for Six Sigma success.

– Infrastructure– Senior leaders direct the

development and training of an infrastructure.

– Communication / Awareness– Steps are taken to “soft-wire”

the organization and cultivate a change-capable environment.

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Page 5: Six sigma

Building a 6σ Organization (11 of 14)

– Project Selection– Six Sigma projects are

proposed for improving business processes.

– Project Deployment– Six Sigma projects are

conducted by project teams led by Black Belts.

– Projects may also be led by Green Belts with the technical assistance of Black Belts.

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Page 6: Six sigma

Building a 6σ Organization (12 of 14)

Timetable– It takes approximately 2 years to

deploy Six Sigma within an organization:

– Identify leader– Discover knowledge– Train Black Belts– Establish project validation

criteria– Train Green Belts– Prepare road map of next steps

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Page 7: Six sigma

Building a 6σ Organization (14 of 14)

Infrastructure– There needs to be 1 master black

belt (MBB) for every 1,000 employees.

– For every MBB in your organization, you would typically need 10 BB’s.

– A Black Belt (BB) will typically complete 5-7 projects per year.

– This structure is intended for organizations with 1000+ employees, but can be easily adapted for companies with 400+ employees.

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Page 8: Six sigma

Enhance Customer Value

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Page 9: Six sigma

Enhance Customer Value (1 of 18)

Recognizing Opportunity– A core principle of Six Sigma is the

recognition of customer value. • Value is what the customer is

willing to pay for. The remainder of our activities is waste.

– The fulfillment of customer needs is the lifeblood of the organization.

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Page 10: Six sigma

Enhance Customer Value (3 of 18)

Traditional Structure– Short-term focus– Bottom line results– Customers are a

pain– Sellers Market– Error Detection– Product Driven– Crisis Management

Customer Driven– Long-term focus– Customer

satisfaction– Customers are

important– Buyers Market– Error Prevention– Customer Driven– Process

Improvement

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Page 11: Six sigma

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Page 12: Six sigma

Let the Data Drive You (1 of 20)

Data Driven Management– Management decisions must be

based on objective data.– Six Sigma projects provide a means

of analyzing process data to achieve process improvements.• These process improvements are

initiated so that the organization can achieve its priorities.

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Page 13: Six sigma

Let the Data Drive You (2 of 20)

Attributes of Good Data– The choice of what to measure is

crucial to the success of the organization.

– Improperly chosen metrics can lead people away from the organization’s goals.• Once chosen, the metrics must be

communicated to the members of the organization.

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Page 14: Six sigma

Let the Data Drive You (5 of 20)

Dashboard Metrics– Dashboard metrics are

measurements of the results delivered by complex processes and systems.

– These measurements are effects of the processes.

– In Six Sigma work, effects are Y’s, and root causes are X’s.

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Page 15: Six sigma

Let the Data Drive You (7 of 20)

Balanced Scorecards– Balanced scorecards display

performance metrics in four areas that correspond to the major stakeholders:• Customer• Internal processes• Innovation and learning• Financial

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Page 16: Six sigma

Let the Data Drive You (10 of 20)

Internal Process Perspective on the Balanced Scorecard

– Which internal processes are critical to meet customer and shareholder goals?

– Internal metrics must be chosen to support the leadership’s customer strategy.

– SIPOC can be used to aid in the selection of internal metrics.

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Page 17: Six sigma

Let the Data Drive You (12 of 20)

Innovation and Learning Perspective on the Balanced Scorecard.

– Can we continue to improve and create value?

– Building shareholder value is dependent on the company’s ability to innovate, improve, and learn.

– It’s important to keep in mind that what worked yesterday may fail tomorrow.

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Page 18: Six sigma

Let the Data Drive You (14 of 20)

Financial Perspective on the Balanced Scorecard

– Obsession with financial metrics undoes many improvement initiatives.• When senior leaders look only at

results, they miss the fact that results come from a chain of interacting processes that produce value for customers.

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Page 19: Six sigma

Let the Data Drive You (17 of 20)

Cost of Poor Quality– The issue of quality costs has been

around since the 1950s.– Cost of quality includes any cost that

would not be expended if quality were perfect.

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Page 20: Six sigma

Which Projects to Select?

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Page 21: Six sigma

Which Projects to Select? (1 of 11)

Maximizing Resources– According to Jack Welch, the CEO of

General Electric, the best Six Sigma projects begin by answering the questions:• How can we make the customer

more competitive?• What is critical to the customer’s

success?– Selecting which projects to focus on

maximizes resources.

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Page 22: Six sigma

Which Projects to Select? (7 of 11)

Tracking Six Sigma Projects– Tracking results from Six Sigma

projects is important for several reasons:• Evaluating the Six Sigma project

selection system• Determining ROI• Setting budgets• Appraising performance• Setting goals and targets• Identifying areas where more or

less Six Sigma is needed

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Download “Six Sigma” PowerPoint presentation

at ReadySetPresent.com

Slides include: 14 slides on building a Six Sigma organization ~ 18 slides on enhancing customer value ~

20 slides on data-driven management ~ 11 slides on which projects to select ~ 3 slides introducing the DMAIC and

DMADV models ~ 23 slides on "D" (Define) ~ 27 slides on "M" (Measure) ~ 7 slides on process behavior charts ~ 5 slides on measurement system info ~ 34 slides on "A"

(Analyze) ~ 35 slides on "I" or "D" (Improve/Design) ~ 17 slides on "C" or "V" (Control/Verify) ~ action steps and

much more.

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