6σ
σ+
Six Sigma Plus
Black Belt Training
Module 1
Introduction
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1
Welcome to your New , Improved and FREE Six Sigma Plus Black Belt
training module.
Have fun and enjoy the power of knowledge. What will you do with your
power?
And now on to the free module.
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Bench Marking
þ List the major components of
achieving world class
performance.
þ Explain meaning of six
sigma.
þ List key elements of
organizational improvement
strategy.
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þ List motivators for
organizational change
þ List the basic steps of every
six sigma project.
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Please take a few moments to answer each questions in the above selfassessment quiz. Notice: these quiz questions are in fact the module
objectives. It is the intention of this course design to provide you with the tools
and skills for which we will test on regarding certification.
¶ The purpose of this self assessment is to give you an indication of how well
you might know all or part of this material. It should help you to focus on
areas where you might need a bit more study.
· Please use your self assessment score to compare to your final quiz.
¸ Write your answers in your personal notebook regarding this module.
¹ As you proceed through the module, locate correct answer(s) to any
question(s) you might have missed. You will discover the identical Quiz at
the end of the module.
Percentage of improvement over your benchmark quiz is dependent on the
amount of effort you apply to learning the module objectives.
We hope you will sign up with Six Sigma Plus to complete your Six Sigma
Blackbelt training. Have fun and enjoy the power of knowledge!
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2
Another White Collar “Slave”
Process
Oh boy!... I have enough on my plate!!
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Layoffs, cutbacks, re-engineering, and such have left most of us have plenty
on our work plates. Still our organizations strive to achieve desired business
results. As a result, most white collar jobs require us to take up the slack.
Most of us work 48 plus hours each week, attempting to stay abreast of these
extreme demands. The success of our businesses require more today than any
other time in history. How can we balance the needs for improvements for our
businesses, and our customers and our internal stakeholders? There are no
magic bullets!
We invite you to take a look at a proven process, that sustains lasting
improvements for businesses, customers and internal stakeholders. A few of
top companies such as Motorola, GE, Sun Microsoft, Texas Instruments,
Kodak and The Dow Chemical Company are using Six Sigma to gain desired
business result performance’s. Some have already reduced defects to 3.4
defects per million opportunities!
Our Six Sigma Plus training approach leads to your organizations lasting
improvements, freeing up time, energy, costs and other vital resources.
Six Sigma Plus increases customer satisfaction, your world class performance,
your increased market share and your profits.
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Another Statistical Process??
• Statistics can be defined as; “A branch of
mathematics dealing with the collection, analysis,
interpretation, and presentation of masses of
numerical data”.
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Our Six Sigma Plus process attempts to remove the fear and mystery of using
statistics in the improvement process by exploring definitions, interesting facts
and providing usable skills training. Ready for a sample? Lets go!
Statistics are a vital part of our everyday lives. How so? Most of us use
statistics to make important decisions about our everyday lives. We are
bombarded by news of statistical reports regarding our society in general, our
health, insurance, mortality, birth rates, economic conditions, growth in our
communities, and so on. Can you think of some recent statistical reports?
Statistics are collections of quantitative data. A statistic is a single term or
datum in a collection of statistics. A statistic is a quantity that is computed
from a sample, such as mean, average or sigma. A statistic is a random
variable ( has variation or is subject to change) that takes on possible value as
a statistic. The term “statistical” means to relate to or employ the principles of
statistics.
And so it is, we use statistics in our daily lives to make better informed
decisions. Why not do the same to improve our desired business results?
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What Is Different?
• Over the last few decades businesses around the
world have used statistics to improve their desired
business results, so what’s different about Six Sigma
Plus ?
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Most of us, over the course of the last few decades, have been involved in
various types of statistical improvements to make our organizations more
competitive, to claim larger market share and certainly to improve profits.
Many organizations that utilized these programs of the past have experienced
some impressive and positive results. But for the most part, organizations
found that the “big ticket” items of their desired business results didn’t mature.
Why? Was this the fault of programs limitations, lack of skills, or maybe
management’s lack of total commitment that denied the desired results?
Maybe a combination of each. What makes Six Sigma Plus so much different?
Six Sigma Plus melds the business organizations focus through strategy, then
binds the synergy of people and process, next it aims these at World Class
Performance in the areas that are Critical to the organization’s Customers.
Utilization of statistics is certainly a large and important part of the process,
but it is only a part of our Six Sigma Plus comprehensive improvement
process.
Lets take a look at some history of statistics.
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Origin of Statistics
• Official statistics are as
old as recorded history.
• There are several
accounts of census
taking in the old
testament of the bible.
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The origin of descriptive statistics is generally traced to census taking by the
Babylonians and Egyptians, 4500 - 3000 B.C.
During the Medieval period, governments began to keep records of land
ownership. In 1086, William The Conqueror ordered the “Doomsday Book”
be written. This book was a record of the ownership and value of lands of
England. This work was England’s first statistical record.
Statistics are used in almost every field of human endeavor, the applications of
statistics are endless.
Understanding statistical principles can help us in most of our chosen fields
and helps us to make more informed decisions in our personal life almost
daily.
Can you think of some examples of other types of statistics we use to help us
make informed decisions?
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Origin of
Modern Statistics
• Henry VII had a great
fear of the plague, and
because of this England
began to register its
dead in 1532.
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At about this same time, French law required its clergy to register all
baptisms, deaths, and marriages.
During a plague outbreak in the late 1500’s, England began to publish weekly
death statistics. By 1632, these “Bills of Mortality” listed both births and
deaths by sex.
John Grant (1620 - 1674), a store owner, began to study these publications in
his spare time. He noticed some unusual things such as the difference between
the birth and mortality rate of men and women.
Grant published his observations and analysis in 1662 in a work titled,
“Natural and Political Observations Made Upon the Bill of Mortality.”
For his achievement of using past records to predict future events, Grant was
made a member of the original Royal Society. Grant’s works are considered,
by many, to mark the birth of modern statistics.
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Origin of
Modern Statistics
• The word “statistic” was first used (1719 - 1772).
• Statistics were first introduced into the English
language.
• Six Sigma, the latest in the statistical arsenal.
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The word “statistic” was first used by Gottfried Achenwall (1719 - 1772), a
professor at Marlborough and Gottingen, Germany. The word comes from the
Italian word “statista” meaning “statesman”.
Statistics were first introduced into the English language by E.A.W.
Zimmerman of England. It was popularized by Sir John Sinclair in his work,
“Statistical Accounts of Scotland 1791-1799”.
There have been many contributions made to improving the use’s of statistics.
More recently are Statistical Process Control, Statistical Quality Control and
finally Total Quality Management.
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Origin of
Modern Statistics
• British Nurse Compiled
Mortality Statistics from
British Military
Hospitals.
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England, France and Turkey were allied against Russia in the Crimean War
1854 - 1856. This was the first to have War Correspondents at the battle sites
using a new technological advance called the telegraph. They would send,
home to England, day by day reports regarding battles, numbers of wounded,
and conditions.
Sir Sidney Herbert, Secretary of War for England, wrote his friend nurse
Florence Nightingale asking her to lead a group of nurses to Scutari to care for
the wounded. October 1854, at age 34, Ms. Nightingale leading 38 nurses, set
out for the battle front.
She found conditions deplorable, unsanitary, little food or medical supplies,
wounded laying on dirt floors and their were no latrines. Many wounded
would continue to die as a result of these conditions.
Florence Nightingale produced shocking “histograms” graphically indicating a
rapid growth of the death rate of British soldiers, in hospitals as well as on the
battlefields.
Florence Nightingale’s statistics and effective presentations of same led to
improved hospitals conditions and measurable reductions in the death rates.
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Six Sigma Origination
» 1980’s Motorola
» Early Black Belt Training
» Six Sigma Today
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The terms and concepts for Six Sigma Black Belts originated at Motorola in
the 1980’s and signified that individuals possessed special expertise in
statistics and technical product and/or product improvements methodology.
Six Sigma Master Black Belts suggested finely honed skills and discipline,
while the Six Sigma Black and Green Belts had recognized depth of designed
skills training and experience.
Early Six Sigma Black Belt training was developed on a joint venture effort
among companies including Motorola, Texas Instruments, IBM and Kodak.
This training lead to an almost exclusively technical role that was focused on
manufacturing and product related improvements.
Today there is no official job description or certification for Six Sigma Black
Belts. The role and skills that once defined it have become much more diverse.
Six Sigma is used today, for example, in technical, non technical, non profit,
service, manufacturing, and safety improvement processes.
Our Six Sigma Plus training process generically defines, provides skills
training and certifications for Black and Green Belts.
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World
World Class
Class Performance
Performance
Moments
Moments of
of Truth
Truth
Internal
Internal
Customers
Customers
66 σσ++
Systems
Systems
People
People
Strategy
Strategy
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Six Sigma Plus objective is designed to achieve World Class Performance.
Six Sigma Plus applies in all areas. Some examples include insurance
brokerage services, hospital care, bulk chemicals, training services,
commodity fasteners, silicon chips, software, gas turbines, cars, jet airplanes,
safety, and everything any of us do to generate income.
Six Sigma Plus approach starts with a well conceived and communicated
Business Strategy that addresses:
þ People and People Development
þ Processes and Systems
þ Six Sigma Plus approach to projects
The result of successful Six Sigma Plus application is the melding of the
business organizations focus, through strategy, binding the synergy of people
and process that is aimed at World Class Performance in the areas that are
Critical to the organization’s Customers.
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World
World Class
Class Performance
Performance
Moments
Moments of
of Truth
Truth
Internal
Internal
Customers
Customers
66 σσ++
Systems
Systems
People
People
Strategy
Strategy
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Drawing on the concept that any endeavor should start with the end in mind,
we consider World Class Performance as defined by the customer in the
market place, to be the objective that all businesses should seek to achieve.
With that as the desired objective, the over all business unit strategy must be
developed. This strategy will have 6-9 key performance areas at any one time.
As one moves down the organization these 6-9 key performance areas will
gain more and more specific application to those in a specific part of the
organization. Stakeholders should be able to make a direct link between the
daily activities they are performing and at least one of these 6-9 key
performance areas.
Six Sigma Plus Improvements come in two different ways: Systems & People
1. To improve the systems and processes that are in use, using all of the
process improvement tools.
2. Development of the capability of people as individuals, in teams and as an
organization.
Efforts to improve one to the exclusion of the other will not be as effective as
an approach as will an approach that considers and includes both.
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Six Sigma Plus
R Philosophy
R Statistic
R Process
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Six Sigma Plus is a philosophy, or understanding, that defects cost money.
One way to become more profitable is to eliminate defects. Organizations that
do this have a lower cost structure and are more likely to have higher profits
and loyal customers. Defects cost money, fewer defects mean less cost to the
producer and customer. Lowest cost generally makes for the most competitive
producer.
Six Sigma Plus is a performance metric. Meaning that the product or service
is performing at a level where the chances of a defect are less than 3.4 in a
million opportunities.
The 3.4 ppm defect rate is for a not what you find if you look at a normal
distribution table considering both tails. In a later module we will explore why
the 1.5 standard deviation shift of the mean produces no more than 3.4 ppm
defective.
Six Sigma Plus is a methodology for working on projects utilizing specific
phases. These are Strategy, Define, Measure, Analyze, Improve, and Control.
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Project Management
Personal, Team and Organizational Growth
Define
Measure
Scope, boundaries, expected results
in balanced score-card areas, high level
process map, resources, time.
Align Strategic Plan, Value, Scope, Document
Process, Capability, Measurements,
Performance.
Analyze
FTA, FMEA, Root Causes, Test Means &
Variances, Cause & Effect, Pareto, Task Force,
Cycle Time, Reliability, Confirm Value
Improve
Reduce Cycle Time, Improve Reliability,
Design of Experiments, Reduce Complexity
Management of Change, Project Management
Control
Specific
Skills,
Tools,
and
Techniques
Control Charts, Audits, New Capability,
Documentation, Share/Educate, Total Value
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First the strategy of the organization is developed, then progress is made along
the two areas of process/system improvement and people development. Six
Sigma Plus uses a project approach to make improvements in these critical
areas.
Strategy, Define, Measure, Analyze, Improve and Control are the six basic
steps involved. There are Project Management considerations that need to be
applied when using theses basic steps. These skills are appropriate not only to
Six Sigma Plus projects but also to any kind of project work. In each step of
the project there is a need for the individuals, the team and the organization to
add to their development of interpersonal, versatility, leadership and
relationship skills.
Within each phase of the DMAIC (see above slide) there are specific tools and
techniques that can be applied. Some have application in multiple areas and
some are very specific. The tools and techniques are much like the tools in a
craftsman’s tool box, the best results come when you have learned how to use
multiple tools and have the judgement to know when each is best applied.
Depending upon the situation there is likely more than one tool that could be
used. The mark of a professional is to know which tool to use in which
situation. Key is to make the tools work for you, not you working for the tool.
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Pe
Or rson
ga al,
niz T
ati eam
on
,
Gr
ow
th
Too
Tec ls and
hniq
ues
ent
nagem
a
M
t
c
Proje
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This a three dimensional representation of the areas involved in Six Sigma
Plus projects.
Expertise in only one dimension produces a single line, while developing in
two dimension produces a flat sheet.
It is only when all three dimensions are developed that the fullness of Six
Sigma Plus potential will be realized.
While the first projects may be rather small in both scope and impact. As you
become more proficient with the tools and techniques, improve in projects
management skills and grow as an individual, team and organization, the
impact expands dramatically.
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Six Sigma Plus
Why
Where
What
How
Who
When
Business Strategy World Class Performance
Customer Critical Criteria
Defect Reduction
Projects DMAIC, People Development, Tools
Black Belts, Green Belts, Team Members
Usually 3-9 months per project
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Six Sigma Plus is more than simple process improvement. While the tools and
techniques of process improvement are vitally important, if these tools are not
supported by an underlying business strategy and the development of people
the gains will not be as big as they could be.
Six Sigma Plus Focuses on Customer Critical Criteria and World Class
Performance with the process improvements, people development and a sound
business strategy to yield results.
Six Sigma Plus will provide you with the tools and techniques necessary to
support your organizations business strategy. It will show you how to
measure, analyze, improve and control processes. You will gain knowledge of
people dynamics, including a better understanding of yourself, that is essential
for the process improvements to succeed.
Too many times there are attempts to focus on process improvement, or people
development, to the exclusion of the other. Success with these approaches is
almost always transitory. Long term sustained improvement requires both.
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Six Sigma Plus
Comprehensive
system for achieving
and maximizing
business successes of
leadership and
performances.
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Six Sigma Plus isn’t about theory. It is about actions towards sustainable, near
perfect, process improvements. Successes are created by the people, systems,
skills and culture for constant renewal of the organization towards desired
business results.
In your improvement project efforts, the difference between a success and
failure will often be determined by leadership and people skills found in our
Six Sigma Plus training.
Six Sigma Plus can accelerate the development of interdependent
collaboration within an organization. It accelerates the rates of improvements.
Six Sigma Plus is the vehicle used in executing an organizations strategic
change, providing a greater success in ability to carry out minor adjustments
and major shifts as dictated by the needs of your business.
Six Sigma Plus enhances the organizations value and desire of internal and
external customer inputs and satisfactions.
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Six Sigma Plus
Process
• All processes in an
organization including
designing products,
services, measurements
of performance, support
systems, delivery and
customer improvement
systems.
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Six Sigma Plus priorities begin with an focused understanding of your
Customers Critical Criteria, expectations, satisfactions and values as they
regard your organization. Performances should then be measured against these
customer criteria. Customers should be viewed as being both internal, as well
as external to the organization.
Six Sigma Plus requires management to be data and fact driven. Management
must clarify the measurements that are key to determining the success of the
organizations desired business results and performances.
Six Sigma Plus is a “process” focused management and improvement system.
The process helps organizations to build competitive advantages and to deliver
value to their customers.
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Synergistic
• Six Sigma Plus should
be a synergistic,
collaborative, and customer
focused system that has no
organizational boundaries.
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Six Sigma Plus requires the organizations management teams to become
“proactive” versus reactive. Management should set clear goals and focus on
problem prevention versus fire fighting emergencies. Management should be
asking “why do we do what we do” versus just going along because that’s
the way its been done in the past.
Six Sigma Plus internal customers benefit greatly by gaining knowledge as to
how they might fit into the organizations big picture.
Internal customer stakeholders, should be able to recognize and measure the
interdependence of activities in all or part of a process.
In gaining and understanding of the end users needs, how work flows through
an organizations process or supply chain, the internal customers are better
equipped to meet the needs and Customer Critical Criteria of “external
customers”, thus preventing costly mistakes, failures or unwanted waste.
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Six Sigma Projects
• Introducing change
means to challenge the
“old guard” personal
and organizational
paradigms.
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Six Sigma Plus projects are designed to improve, or to change, to successfully
achieve desired business results of the organization.
Introducing change means to challenge the “old guard” of both personal and
organizational paradigms. Paradigms are our personal beliefs about how things
are supposed to be. We as people often filter out and resist incoming data that
does not closely match our specific paradigms.
We as people, and organizations, get set in our ways, are comfortable, and thus
most suggested or required change makes us uncomfortable. As a result some
of us will resist making some or all of the needed changes. Once we have
personal buy in to the new change, we can begin the slow process of change.
We say slow because, those wanting the change to take place generally feel the
rest of us aren’t moving towards the change fast enough. You’ve been asked to
change and have asked others in the past... How did you feel about their
progress towards the desired target?
The greater the belief in our paradigms, the more difficult will be the
opportunity for making needed change. Much resistance from personnel within
the organization is often the result, as change “levels the playing field” and
some stakeholders feel they will lose their personal or positional power.
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Improvement Projects
Map Components
1. Identify Core Processes and
Customers.
2. Define Customer
requirements.
3. Measure Current
Performance.
4. Prioritize, Analyze and
Implement your
Improvement Processes.
5. Expand and Integrate your
Improvement System.
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Strategy
Structure
Processes
RESULTS
People
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Most products or services that do not change and evolve, will likely have
limited success and life in the market place. The auto industry, as example,
has locked themselves into a cycle of a new model every year. Frequently
there are only minor or cosmetic changes made to these new models. Ever
have trouble identifying one year model from the next of a particular vehicle?
Six Sigma Plus teaches that redesign of Products and Services should be based
on the Measured Value from the Customers and Supplier capabilities. Done
correctly, the Redesigned Product and Service should do a better job of
meeting and exceeding Customer expectations than did the original product or
service.
When Six Sigma Plus is applied, the economic return on investment should
improve for the Business Unit involved. Better products with fewer defects,
cost reduction projects, better understanding of the Customer, improved work
flow, employee commitment, supplier involvement and reduced cycle times
are but a few of the contributing areas. Good redesign should reduce
complexity, have fewer defects, improve reliability, and offer the Customer
functionality not in the original product or service. When these objectives are
met there is a direct cause and effect relationship to improved margins and
larger market share.
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Management Leadership
& Strategy for the
Organization
& Customer Focus
& Champions in each
Business
& 6σ+ Project Leaders
(Black Belts)
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& Training
& Allowing only value
added projects
& Monitor Process and
Results
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The full benefit of Six Sigma Plus will not be realized without the “active
leadership” of the Senior Management which include:
¶ Well defined, clearly communicated, strategy used in decision making.
· Focus on the customer. While internal services and processes may
improve efficiency and productivity, customers decide if you stay in
business or not.
¸ Empowering Champions with the ability to access and communicate
with senior managers, and directing Black Belts.
¹ Project leaders, experienced people trained in the Six Sigma Plus
methodology to lead improvement efforts in the areas consistent with the
organizational strategy.
º Project selection for implementation may be the single most important
indicator of success. Management must maintain responsibility for the
success of the project just as they would for any other significant activity.
» Six Sigma Plus projects should be reviewed by management on a regular
basis. Success, problems, issues, shared learning and of course results
should be part of these reviews.
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Map Business Process
1. Draw process boxes and name the boxes
6.Identify Intermediate Steps
2. Identify
output.
5. Identify
Inputs
4. Identify Last
Step
3. Identify
Customer
7. List sub steps
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This simplified map of a business process should be done by those assigning a
project to the Six Sigma Plus Black Belt.
If map is not provided, you should prepare it early on and have a review with
the Champion and Process Managers to assure that there is agreement on the
scope of the project. This map can help provide a well defined and well
scoped project.
Process Business Map Steps
1. Draw and label Process Boxes.
2. Identify Output.
3. Identify Customer.
4. Identify Last step.
5. Identify Inputs.
6. Identify Intermediate steps.
7. List Sub steps.
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MACRO Map
20’
3’
P1
P2
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P5
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Once the scope of a project is defined and the basic process map agreed upon,
it is time to identify the full detail. There may be many sub processes (more
than just the P1-P5) indicated here, required to obtain needed detail.
A large work space is needed to get all of the detail of the process defined. We
recommend that you use Post Its and a number of taped flip chart sheets or
butcher paper to make this MACRO map. Indicate where the sub processes
begin and end. It is frequently at the interface of processes where major
problems occur.
One of the key things here is to make a physical representation of time.
You have to decide if the process is driven by work day time or calendar time.
If work day time, then a day has 8 hours not 24.
For example a 3 inches might represent a week or a day. What ever it is as
you put up Post Its, be sure that each activity is represented by the time it
takes. If for example there is an aging step that is seven days calendar time
and you have decided that 3inches represents a full day, on the map this aging
step should be 21inches long(7X3). At the other end a one hour activity with
this would be 0.125 “ long. (3/24=0.125).
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Types of Measures
• Lagging Measures
– After the fact
• Financial
• Leading Measures
– Proactive to achieve
the strategy
• Behavior and
actions
• It is the proactive
actions and behaviors
that cause achievement
of the Strategy
Behavior
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Some of the measures you want will come after the fact. Financial and reports
on the Customer Critical Criteria (CCC) are usually after the fact. These are
often the result measures that we are seeking.
Frequently we can do little to alter these measures. We must move down in
our process to look at the causes and the leading measures.
Leading measures are the things that cause the result measure to happen.
These are the causes that lead to the results.
Define Performance Measurement
Lagging
Measures
Desired Objective
Leading
Measures
Measure Actions Impacting Performance
Actions Impacting Performance
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Balanced Score Card
•
•
•
•
Financial
Customers
Growth
Learning
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Six Sigma Plus recommends that you consider measurements in at least the
four areas listed (see slide) for every project. One of the key management
responsibilities is to decide how some of these measures will be applied. If
you do not have guidelines from you Management, we encourage you to take
the lead and propose standard guidelines.
Organizations that have achieved great success, utilizing Six Sigma Plus
Plus, have
very strong rules about tracking financial gains of their projects. Most require
a direct link to the bottom line profit before gains can be counted. One year is
a common time frame used to see if the improvements are real or transitory.
Some Examples
¶ Labor savings--allowed only if headcount is reduced or an approved hire is
not made and the budget is reduced.
· Space--leases must be canceled and the savings calculated on the money
not paid out. An alternate is to sub lease and the income less expenses is
counted.
¸ Inventory reduction --only time value of the money tied up in inventory is
counted.
¹ Yield improvement--measure the before and after uses and the difference is
counted. Budget should be reduced to reflect the improvement.
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Simplified Sigma
Conversion Table
Yield
30.9 %
69.2
93.3
99.94
99.98
99.9997
DPMO
690,000
308,000
66,800
6,210
320
3.4
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Sigma
1
2
3
4
5
6
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Sigma levels of performance are expressed in “Defects Per Million
Opportunities” or DPMO, which indicates how many errors would show up if
an activity were repeated a million times. Sigma levels are another way of
communicating the same information.
Six Sigma Plus defines customer requirements clearly and thus measures can
be used to measure and compare very different processes throughout an
organization focusing on defects and defect opportunities.
After you clearly define a defect you can measure almost any type of business
activity or process. These measures must be applied across an organization
with established guidelines. Measures should not remain “static”. Customer
requirements change and so should your performances.
Process improvement should find targeted solutions so as to eliminate “root
causes” of a business performance problem. Our emphasis should be on
finding and targeting solutions to address the “vital few” factors that cause the
problem.
A unique problem is presented for the Six Sigma Project Manager each time
he or she starts a new project... “How do I write a well planned project mission
statement that is inspiring, clear, accurate, measurable and one that results in
action?”
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Unique Marketing Advantage
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Once your customers have developed a low tolerance for defects, you have a
unique marketing advantage over your competitors.
This is true, provided you continue to focus on the Customer Critical Criteria
and improvement processes. In these areas mentioned, it is going to be very
difficult for a competitor to match the level of performance your customers
have learned to expect from your business organization.
Six Sigma Plus focuses on the Customer Critical Criteria (the important
variables) that drive a successful redesign of a product or service.
Understanding what the voice of the customer is really saying, is of vital
importance.
How do you do you get started?
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Loyal Customers
As the business results are achieved there should be an increase in
Customer Satisfaction with a Loyal Customer as the objective
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True/False Quiz, Circle the Correct Answer.
T/F A customer the most important person in any business.
T/F Customers dependent upon us.
T/F We are dependent upon the Customer.
T/F A Customer is an interruption of our work.
T/F A customer is the sole purpose for our Work.
T/F A Customer does us a favor when he comes into our Business.
T/F We are doing the customer a favor by waiting on him.
T/F A Customer is an essential part of our business--not an outsider.
T/F A Customer is not just money in the cash register.
T/F A Customer is a human being with feelings and deserves to be
treated with respect.
T/F A Customer is a person who comes to us with his needs and
expectations and it is our job to fill those needs and expectations.
T/F A Customer deserves the most courteous attention we can give him.
T/F The Customer is the lifeblood of this and every business.
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Step One Strategy
• Identify Core Processes
& Key Concepts
– Objectives
– Outputs
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Step 1. We should first Identify our businesses Core Processes & Key
Concepts.
Objectives should be to
A. Create a clear “Big Picture” of our Core Processes & Key Concepts..
B. Understand Critical and Cross-functional activities in our
organization and “how” these interface with our external customers.
C. Develop the 6-9 key performance indicators for our business.
Outputs should result in
1. A Map of value delivering activities in our organization.
2. Our core value adding processes identified.
3. Core products and services we provide to our customers.
4. Understanding of “How” these processes flow across our entire
organization.
5. Measures for the key performance indicators.
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Step Two Define
• Define Customer
Requirements.
– Objective
– Outputs
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Step 2. We should then Define our Customer’s Critical Criteria.
Objectives should be to
1. Establish standards for performance that is based on actual customers input,
so that process effectiveness and capability can be measured. This will
allow us to predict our customer’s satisfaction.
2. Develop or enhance systems and strategies to collect on-going Customer
input and data gathering.
3. Make the direct link between our key performance indicators and the
Customer Critical Criteria.
Outputs should result in
1. A clear and complete description of the factors that drive our customer’s
satisfaction for each output and process for our organization.
2. These should be tied to end products or services that make it work for our
customer’s.
3. “Service requirements” should describe describe “how” our organization
should interact with our customers.
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Step Three Measure
• Measure Current
Performance.
– Objectives
– Outputs
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Step 3. We should then Measure our Current Performance against our
Customer’s Critical Criteria and our key performance indicators.
Objectives should be to
1. Accurately evaluate each process’s performance against definable
Customer Critical Criteria link to our key performance criteria.
2. Establish a system for measuring key outputs and services features we offer.
Outputs should result in
1. Benchmark Measurements that are the quantified evaluations of our current
or recent process performance’s.
2. Capability Measurements that are the assessments of our ability regarding
our current process or output to deliver on Customer Critical Criteria. These
would include “Sigma” scores for each process, thus providing for
comparison of very different processes across our organization.
3. Measurement Systems that are the new or enhanced methods and resources
to be used for on going measurements for our customer focused
performance standards.
4. On going measures of our key performance indicators.
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Step Four Analyze
• Prioritize,and Analyze
Processes that deliver
Customer Critical
Criteria.
– Objectives
– Outputs
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Step 4. We should then Prioritize and Analyze our Processes that deliver the
Customer Critical Criteria.
Objectives should be to
1. Identify our organizations highest potential improvement opportunities.
2. Develop process oriented options supported by factual analysis,
collaborative and creative thinking by our organizations employees.
3. Prioritize the different options for impact on the Customer Critical Criteria
and upon the other Balanced Score Card areas.
Outputs should result in
1. Improvement priorities that are based on impact and feasibility regarding
our organization and it’s customers.
2. Process improvement solutions that target specific root causes to problems.
3. An understanding of how the various solutions impact all of the areas of
concern. This allows for a balanced approach that does not sub-optimize one
area and actually hurt the organization as a whole.
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Step Five Improve
• Implement Improvement
Processes.
– Objectives
– Outputs
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Step 5. We should then Implement our best option for the organization as a
whole.
Objectives should be to
1. Effectively implement our organizations new solutions and processes.
2. We should also provide measurement proof of our sustainable gains.
Outputs should result in
1. New or redesigned improvement processes, activities and work flows
created to meet new demands, incorporate new technologies, or achieve
dramatic increases that focus on Speed, Accuracy or Cost .
2. Performance Improvements of our organizations desired business results as
shown by our key performance indicators.
3. Improvements for the organization as a whole.
4. Greater customer loyalty as we will be meeting specific Customer Critical
Criteria better than ever before.
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Step Six Control
• Expand and Integrate
the Performance
Improvement Systems.
– Objectives
– Outputs
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Step 6. Finally we should Expand and Integrate our organizations
Performance Improvement Systems.
Objectives should be to
1. Establish control systems that assures the gains will not be lost.
2. Initiate on going business practices that drive improved performances and
ensure constant measurement, examination, and renewal of our
organizations products, services, processes and procedures.
Outputs should result in
1. Process Controls that measures and monitors the sustain performance
improvements our organization has gained.
2. Process Ownership & Management of our organizations cross functional
support processes, having input from our “Customers”, “Markets”, and
“Internal Customers”.
3. Response Plans to be used as the mechanisms to act. These are based on
key information so as to successfully adapt our strategies, products, services
and processes.
4. Improvement Culture that uses statistical tools as our organizations position
of continuous renewal as a part of our everyday business environment
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Essential Improvement Themes
1. Focus on the Customer.
2. Data Fact Driven
Management
3. Process Improvement
Focused Management.
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1. Focus on your customers. Make this “real” and back it up with training
skills for utilizing the desired attitudes and behaviors that place the
customers needs first. Tie your organizations business systems and
strategies to your “Customers” expectations and desires.
2. Data and fact driven management must provide effective measurement
systems, tracking both results and outcomes, as well as process input and
related predictive and preventive data.
3. Process improvement focused management is the driving force for
growth and success of the organizations desired business results.
Improvement processes should be documented, communicated, measured
and refined on an on-going basis.
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Six Essential Improvement
Themes
4. Proactive Management.
5. “No Boundaries”
Collaboration.
6. Drive for World Class
Performance and
Perfection.
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4. Proactive management involves habits and practices that anticipate
problems and changes, applying facts and data, that questions assumptions
about your organizations goals and “how you do things”.
5. “No Boundaries” collaboration requires cooperation between internal
customers, external customers, suppliers, and other stakeholder partners.
6. World Class Performance and Perfection requires a tolerance for failures,
giving internal customers, (stakeholders) in the organization, the freedom to
test new approaches, even while managing risks and learning from mistakes.
Successfully embracing these essential improvement themes will lead to
raising the performance and customer satisfaction bars for your organization.
Gaining continuous and incremental improvements will put a firm into a better
position to successfully achieve the organizations desired business results of
gaining and maintaining “Loyal Customers”, Improving Market Share and
Increasing Profitability.
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Elements
Structure
Process
People
Vision
Strategy
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Implementing Six Sigma requires taking a new and closer look at many of the
essential parts of your organization.
Six Sigma implementation must have some structure within your organization,
it cannot be a bolt on activity that is managed outside of the normal business.
The business units of your organization should create Champions and
Blackbelts to insure successful achievement of your organizations desired
business results.
Senior management of the business units must maintain responsibility for the
success of Six Sigma. Champions must have ready access to the senior
management and be knowledgeable of the activities of the Blackbelts in their
business.
Six Sigma projects should not be started until the Blackbelt and Champion
agree the scope and parameters of the project are adequately defined. It is then
up to the Blackbelt to lead the project to its completion.
People development is more than teaching tools and techniques. Leadership
and team building skills are essential for the Blackbelts. Understanding
behaviors and motivation are equally important development areas.
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Information and Analysis
Business System
Re-Design
Products & Services
Leadership
Measure
Value
Suppliers
Competitors
Products Services
Work Processes
Distribution
Customer
Satisfaction
Employee Development
Involvement
Visions Values
Strategic Direction
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Results
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Each component of your Business System is an integrating factor on each and
every other component within the system.
First evaluate your business system as a “whole”, then move to exploration of
the components. Linkage between each component is as important as the
component itself.
Complexity can overwhelm and undermine your efforts. Seeing the patterns
behind the events, can lend to simplification and understanding. This, in turn,
can allow you to provide needed leverage for your actions aimed at
improvement changes. This should also help you to identify limits to your
success or growth problems within your organization.
Without complete, appropriate information and analysis of the entire system,
you set yourself up for failure. You should explore the discipline of your
“Systems” thinking, viewing your business world as a whole, a framework of
patterns and inter-relationships, in order to successful achieve your
organizations desired business results.
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Success with Six Sigma
Sustained Effort
•
•
•
•
•
•
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Strategy
Leadership
People Development
Systems Improvement
Project Work
Training and
Development
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The best Six Sigma Plus implementation strategy would be to opt for the start
up and training of the organizations Senior Management, Champions, Black
Belts, Green Belts and Internal Customers.
Six Sigma Plus starts at the very top of the organization with management,
requiring their active support and participation in the process. Senior
Management’s duties include project, people selection, project reviews,
rewards, and recognition.
Six Sigma Plus success results in the completion of various projects. Projects
are lead by a Project Manager (Black Belt) that understands how to apply
needed tools and techniques at various stages of the project. If change is not
welcome in your organization, Six Sigma will be of little value.
People development activities must occur through out all of your organization.
Six Sigma Plus tools and techniques should be taught to internal customers,
lending to their collaboration skills for successfully achieving the
organizations desired business results.
Leadership, understanding behavior, team skills, and utilizing Six Sigma Plus
tools are essential ingredients for all project stakeholders for achieving success
of your organizations Six Sigma Plus project.
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Bulk of Opportunities
Low Hanging Fruit
Blinding Obvious
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If your organization is considering implementing Six Sigma Plus , you likely
have already taken care of your organizations blinding obvious issues and
problems. These likely will not require any special talent to find or address.
Not to say that they are all easy to resolve.
This low hanging “fruit” can be addressed with very basic problem solving
tools and techniques.
In most organization’s, the bulk of the improvement opportunities are going to
be more difficult to resolve successfully. These improvement opportunities
maybe a little harder to reach and will likely require more specialized training,
tools, and techniques such as those found in Six Sigma Plus training.
It is these areas of improvement opportunities where Six Sigma Plus will
return huge benefits to your organizations and provide the ability to
successfully achieve your desired business results.
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Synergy
•
No magic bullets.
•
Linear approaches yield
additive improvements.
•
Collaborative and synergistic
approaches yield
exponential improvements.
•
Continuous learning is
required to advance.
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As you start preparing for Six Sigma Plus, please realize that there are no
magic bullets. This effort is applied in a planned and intelligent fashion. As
projects are completed, one at a time, there is an additive effect. Improvements
will tend to be linear with each project that is completed. As more projects are
completed the benefits grow and the synergy of multiple improvements begins
to yield more than the sum of the individual projects.
When attempting to complete your first Six Sigma Plus project you may find
the process is somewhat slow. Take heart as with any new set of skills you
will improve with practice. Exponential growth is possible as the synergy
between projects develop and the project pace is increased. This will happen
as Management, Champions, Black Belts, Green Belts and the organization
as a whole gains more project experience and success.
A truly successful Six Sigma Plus project effort shares the success and
challenges. This not only gives encouragement to others, it also allows people
with success stories to receive some of the recognition they deserve. Every
project is a learning experience.
Leadership, Champions, Black Belts, Green Belts, and internal customer
stakeholders must each continue to learn and grow with the Six Sigma Plus
process in order to continue the successful achievement of the organizations
desired business results.
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Introductory Module
Final Quiz
1. List the major components to
achieving World
Class performance.
2. Describe the meaning of Six
Sigma.
3. List key elements in an
organizational improvement
strategy.
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4. List motivations for an
organization to change.
5. List the four steps found in
every Six Sigma project
once it is defined.
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Complete the following to strengthen your personal learning process and
growth:
¶ Complete the above quiz. Compare your answers to objective benchmark
questions you answered at the start of this module. Did you significantly
improve?
We suggest that you correct answers to quiz questions missed.
· What are the key learning items you personally gained from this module?
¸ List and Explain how this training will impact your personal or business
life.
Thank you for participating in this Six Sigma Plus Free Introductory Module.
We hope you will join the many others who will begin their “Six Sigma Plus
Black Belt Training” using our new, faster and cheaper, distance learning
process.
Visit our web site often to see our latest training releases. Please tell your
friends to join you in our chat groups, to drop us a question, sign up for our emailed newsletter, and about our growing training program offerings.
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What Next??
• Have you decided to continue your learning
about Six Sigma Plus ?
• If so answer the final quiz on the previous
page and send by e-mail to:
cadams@adamssixsigma.com
• Send payment by snail mail to:
Cary W. Adams
Adams Associates
10A Bayou RD
Lake Jackson, TX 77566
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When we receive you final quiz answers we will:
¶ Open a file for you.
· Respond to let you know the answers were received.
¸ Comment if any answer is not as fully developed as we expect.
¹ Wait for payment, and when received
º Direct you to a URL to continue your training.
Payment Options:
Black Belt Training is five (5) Blocks of training. Each is $990 or $4390 for
the entire program. Visit our web site for a full description of the modules
contained in each major block of training.
Green Belt Training is three (3) Units of training. Each is $890 or $2390 for
the entire program. Visit our web site for a full description of the modules
contained in each unit of training.
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