Top Banner

Click here to load reader

Six Sigma Presentation

Nov 21, 2014

ReportDownload

Business

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

  • 1. Contemporary Organizations and the Future Six Sigma / Innovation Facet
    SalilDeshmukh
    John Gastreich
    Justin Frey
    Prem Anand Mathiyalagan

2. 2
Agenda
Problem statement
Recommendations
Innovative companies
Links between Six Sigma and innovation
Integrated Enterprise Excellence
Weighted criteria matrix
3. Problem Statement
Future
of
Six Sigma
Growth
versus
Performance
3
How to find a balance between efforts to grow the business and the diligence needed to maintain high performance operations?
Which Six Sigma approach or evolution is most appropriate for meeting future business challenges over the next decade?
4. Scope
Within Scope
Out of Scope
Research next-generation Six Sigma and continuous improvement practices.
Compare and contrast how industry front-runners apply six sigma in terms of innovation and growth.
Identify qualitative metrics for performance assessment and for rewarding/incentivizing.
Perform analysis of as-is RMS Six Sigma methodologies.
Perform primary research of direct competitors to RMS.
Provide recommendations for a roadmap to move from as-is RMS methodologies to to-be RMS methodologies.
4
5. Research Methodology
Primary research: interviews with SMEs

  • Dr. Pamela Slaten Operations

6. Dr. Kenneth Smith Innovation 7. Dr. Sudha Ram Business Intelligence 8. Larry Dyer Six Sigma 9. Thomas Pyzdek Six SigmaSecondary research

  • Trade magazines

10. Scholarly articles 11. Books 12. Others (company websites, industry data)5
13. Recommendations
Do NOT use Six Sigma for innovation activities directly
Identify processes/methodologies used to support innovation and other activities; use Six Sigma to improve such processes
Innovation Maturity Model
Next generation organizational behaviors
Instead of applying Six Sigma in silos, use it for the processes of the entire organization
6
14. Innovative companies
Justin
7
15. Innovative Company Rankings
8
16. Most Innovative Companies
9
17. Six Sigma in Innovation
Of the most innovative companies, only GE couples Six Sigma with Innovation
Reasons
Stifles creativity
Lowers employee morale
Only used for process improvement
10
18. Qualities of Innovative Companies
Attitudes
Willingness to cannibalize assets
Future focus
Tolerance for risk
Practices
Empowerment of product champions
Incentives for enterprise
Internal markets
11
19. Recommendations

  • Do not use Six Sigma for Innovation Activities directly

Identify processes/methodologies used to support innovation and other activities; use Six Sigma to improve such processes.
Innovation Maturity Model
Next generation organizational behaviors
Instead of applying Six Sigma in silos, use it for the processes of the entire organization
12
20. Methodologies and tools
Prem Anand
13
21. Is there an indirect connection between Six Sigma & Innovation?
14
22. Yes
15
23. Indirect Benefits
Organization are undergoing significant changes
Emphasis on innovation
Proposed methodology
Use standard framework to manage innovation
Identify processes
Use Six Sigma to improve processes
Hence Six Sigma can be used indirectly
16
24. Frameworks and Models
Innovation Network Framework
Framework used to manage innovation within a large organization
Innovation Maturity Model
Model to assess the maturity level of the innovation process within an organization
17
25. Innovation NetworkFramework
Network with internal and external groups to generate ideas
Identify objectives and define metrics
Objectives and metrics
Business objectives
Structural objectives
Activity metrics
Behavioral metrics
Innovation Network Metrics
Customer innovation metrics
Case Study P&G
18
26. Case Study
19
27. General Innovation Management
Choose appropriate innovation strategy
First-mover strategy
Fast-follower strategy
Conservative slow-follower strategy
Alternative innovation strategy
Focus innovation on a business imperative
Define an innovation process model
Organize to accomplish innovation
Innovation Maturity Model
20
28. Innovation Maturity Model
21
29. Behaviors
Highly Collaborative Environment
22
30. Next Generation Behaviors
3 Factors leading to the revolution
Web 2.0
Net generation
Need for uniquely qualified minds
Characteristics of the Net-Gen
High technology adoption
Creativity
Social connectivity
Diversity
Ideagoras
Marketplace for ideas, innovation and uniquely-qualified minds
Wiki Workforce (Highly collaborative)
Collaborative Economy
Business Web
More the collaboration better the results
23
31. Boeing 787
Boeing executives concluded that mass collaboration was the only way to create the kind of cheaper, more fuel-efficient jetliner that airlines want
24
32. Sentiment Analysis
Also known as Opinion Mining
Determines opinion polarity on a topic
Quantifies the qualitative (sentiment)
First used for movie reviews
Used heavily in marketing analysis
Can be used to quantify opinion surveys
Commercially available sentiment analysis software
25
33. Recommendations

  • Dont use Six Sigma for Innovation Activities directly; it stifles creativity.

34. Identify processes/methodologies used to support innovation and other activities; Use six sigma to improve such processes.Innovation Maturity Model
Next generation organizational behaviors
Instead of applying Six Sigma in silos, use it for the processes of the entire organization
26
35. Integrated Enterprise Excellence
Salil
27
36. Integrated Enterprise Excellence
Developed by Forrest W. Breyfogle III, the President and CEO of Smarter Solutions, Inc
Uses the familiar Six Sigma DMAIC road map not only at the project level, but at the enterprise level as well.
28
IEE
E - DMAIC
P - DMAIC
Enterprise Level Roadmap
Project Level Roadmap
Integrated Enterprise Excellence
* DMAIC = define, measure, analyze, improve, control
37. The Need
Where Lean Sigma Falls Short

  • Just another Problem Solving System

38. Steering committee aims at process improvement and providing certifications 39. Low hanging fruit gets selected as a goal 40. Most process improvement techniques often occur in silos 41. Benefits are not propagated to executive level 42. In a financial crisis, Lean Six Sigma programs are often downsized29
43. Integrated Enterprise Excellence (IEE)
An enterprise system that provides structure for integrating innovation with analytics
30
Integrated Enterprise Excellence
Six Sigma
Balanced Score Cards
Lean
44. How it Works
31
45. How it Works
Step 1: Describe a vision and a mission
Step 2: Describe the value chain
Step 3: Analyze the enterprise
Step 4: Establish goals for satellite-level metrics
32
Define
Measure
Analyze
Analyze
46. How it Works
Step 5: Create strategies
Step 6: Identify high-potential improvement areas
Step 7: Identify and execute projects
Step 8: Assess the projects final impact on enterprise goals
Step 9 : Maintain the gain
33
Analyze
Analyze
Improve
Improve
Control
47. How it Works
34
48. Recommendations

  • Do not use Six Sigma for Innovation Activities directly

49. Identify processes/methodologies used to support innovation and other activities; Use six sigma to improve such processesInnovation Maturity Model
Next generation organizational behaviors

  • Instead of applying Six Sigma in silos, use it for the processes of the entire organization

35
50. Weighted criteria analysis
John
36
51. Options for Recommendations
Passed
Failed
Keep Six Sigma - Continue using Six Sigma, improve the image of the Six Sigma unit, 1% of all RMS employees
Increase Collaboration, Innovation Network Model, Crowd sourcing - Increase collaboration inside and outside the company
Do not Integrate Six Sigma and Innovation Keep separate
Implement Integrated Enterprise Excellence (IEE) - Or other forward thinking Six Sigma derived methodology
Integrate 'Bike Shop' i.e. Skunk Works, into the mainstream activities of RMS
Hire Consultants - Specializing in Six Sigma and technology, e.g. Thomas Pyzdek, Bain Performance Improvement
End of Management - Pyzdek, eliminated because RMS is not facing a crisis
Outsource Six Sigma - Only core competencies should be kept in house
Guidance and Collaboration with other Raytheon Six Sigma Groups - RMS is not the only division of Raytheon with Six Sigma teams
Further Six Sigma Education - Improper education is said to be one of the leading causes of 6S failures
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
37
52. Criteria Selection Process
Raytheons Vision, Strategy, Goals, and Values
Admiration
Respectability
Knowledge (