Six Sigma Qualtec Improving Your Business Results BEYOND SIX SIGMA: A HOLISTIC APPROACH TO IMPROVING BUSINESS RESULTS Pete Robustelli Executive Vice President Six Sigma Qualtec, Inc. Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Agenda Overview • • • • Improving Your Business Results How Six Sigma has been Deployed Key Elements The Enterprise-wide Model Differences Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Meeting Management’s Expectations & Achieving Success Y = f(X) The “Vital Few” X1 = Senior Executive commitment and involvement X2 = Up front planning X3 = Project selection that makes an impact on the bottom line of the business X4 = Full-time “Best of the Best” Black Belts X5 = Metric systems to track progress Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results SSQ Six Sigma Approach Tools Measure Analyze Improve 6s Infrastructure Champions Black Belt Green Belt Yellow Belts Control Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Key Elements Identify Core Processes Define Mission and Vision Create Strategy Classify Core Processes and Enabling Processes Prioritize Focus Based on Strategy Establish Process Control Systems Identify Performance Gaps Apply MAIC Six Sigma Qualtec – All Rights Reserved Map Key Processes Determine VOC, VOB, VOE Requirements Establish Indicators Establish Measurement Systems Determine Baselines and Targets Characterize Gaps Administrate PCS Measure Analyze Improve Control June 26, 2002 Six Sigma Qualtec Workstream #1 Improving Your Business Results The Six Sigma Deployment Success Strategy: Five Workstreams Initiative Planning & Startup Workstream #2 Client is prepared to gain full benefits of Six Sigma Executive Training & Onboarding Workstream #3 Client Executives prepared to lead and select projects with impact Employee Training & Onboarding Workstream #4 Workstream #5 Initiative & Project Management Activities Six Sigma Qualtec – All Rights Reserved Client is reaping initiative benefits Transition Training & Implementation Client is prepared to train future waves Client attains Self Sufficiency & is Self Sustaining June 26, 2002 Six Sigma Qualtec Improving Your Business Results Three Dimensions of any Deployment Technical Strategic Expertise Management Behavioral Six Sigma Qualtec – All Rights Reserved Tactical A successful six sigma deployment requires a variety of sometimes opposing abilities to be successful! June 26, 2002 Six Sigma Qualtec Improving Your Business Results SSQ Enterprise-Wide Model to Performance Improvement Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Enterprise-Wide Model to Performance Improvement • Business Results: Understanding the economic relationship of process performance to overall business results. • Customer Value Proposition and Value Chain: Maximize the customer value proposition through GAP analysis to identify key sources of pain. • Process Management, Improvement and Design: Maximize the ability of your processes and people to deliver customer value through three key methodologies (Six Sigma, Lean and Process Management). • Develop Leadership and Human Capital: Enterprise-wide development of human capital to enable on-going performance. Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Engagement Activities • Frame the Value Proposition – Customer's Customer • Translate the Value Proposition into ACTIONS for Change – Create a deployment to achieve the business results • Implement Change: – Process Management • MAIC • DFSS – Leadership and Human Capital Development • Partner for Growth – Review and adjust for continued value add Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Business Results • Engagement Activity:Frame the Value Proposition – Identify value enhancing opportunities focusing on business results needed/expected – Assess and develop executive leadership’s understanding of their roles and required activities for the DECISIONS that need to be made going forward. – Identify and develop business performance metrics that matter. Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Business Results • Outcomes: – Definition and measurement of interventions based on their impact to the business results the client values. – Communication details as appropriate for the audience e.g., EVA at the executive level vs. project results at the BB or Team Member level. – Value concept created for all levels. Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Customer Value Proposition & Value Chain • Engagement Activity:Translate the value proposition into actions for change. – Map value streams ands identify critical organization and process relationships. – Identify or create organizational performance metrics. – Design a DEPLOYMENT to maximize the value proposition and value chain to achieve business results. Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Customer Value Proposition & Value Chain • Outcomes: – Identification of client's existing metrics linked to their Customer Value Proposition. – Map of the client's Customer Value Chain identifying relationships among organizational units, identification of core processes and likely process intervention areas impacting the Customer Value Chain. – Linkage of solutions to the client's Business Results through their Customer Value Proposition and associated processes. Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Six Sigma Process Management, Improvement & Design • Engagement Activity:Implement Change – Develop middle and first line leadership. – Align organization goals vertically. – Align and develop the infrastructure. – Implement process management. – Align enabling processes – Implement process improvement Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Six Sigma Process Management, Improvement & Design • Outcomes: – Improvement culture, tool, skill and knowledge transfer from SSQ to client personnel through training and support of Process Management, MAIC, IMAIC, DFSS and Lean in context with the client's Customer Value Chain. – Completed projects showing impact on the Customer Value Chain and economic return on intervention investments. – Assessment of the people developmental gaps impacting the sustained implementation of the transferred improvement culture, tools, skills and knowledge. – Process and infrastructure to effectively manage and leverage across the client's organization the results and impact of SSQ interventions. Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Develop Leadership & Human Capital • Engagement Activity: Develop Leadership and Human Capital at all levels. – Initialization sessions for Executive and Senior Management to align them on the strategies and tactics for achieving Business Results. – Identify knowledge, skill, and ability gaps in front and middle management necessary to implement change. – Extend and expand on current education and knowledge management content and tools. – Develop and implement an education and training strategy. Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Develop Leadership & Human Capital • Outcomes: – Superior on-job performance of all employees necessary to have appropriate return on intervention investments. – Practical mechanism for maintaining human performance levels well beyond the time frame of initial implementation. Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Partner for Growth • Review and confirm the value of interventions in achieving business results. • Partner with mutual strengths to expand the value proposition for both the client and SSQ. Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec • Improving Your Business Results Engagement Activities Contrasted Work Stream #1: Initiative Planning and Start-up (MAIC) • • • Workstream#2: Executive Training (MAIC, Champion) • Workstream #3: Employee Training (MAIC, DFSS) • Workstream#4: Transition and Implementation • Workstream#5: Sustained Initiative by Client (6 Sigma) Six Sigma Qualtec – All Rights Reserved • Frame the Value Proposition: Customer's Customer Translate the Value Proposition into ACTIONS for Change: Create a deployment to achieve the business results Implement Change: – Process Management • MAIC • DFSS – Leadership and Human Capital Development • Partner for Growth: Review and adjust for continued value add June 26, 2002 Six Sigma Qualtec Improving Your Business Results SSQ Enterprise-Wide Model to Performance Improvement Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Workstream #1 - Initiative Planning & Start Up Workstream #1 Initiative Planning & Startup Client Prepared to Gain Full Benefits of Six Sigma 1. Readiness Analysis 5. Communication Plan Development 2. Policy Deployment 6. Awareness Training Development 3. Six Sigma Training for Finance 7. Corporate Project Selection 4. Human Resources Planning 8. Initial Planning Session Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Workstream #2 - Executive Training & On-Boarding Workstream #2 Executive Training & Onboarding Client Executives Prepared to Lead and Select Projects With Impact 1. Senior Executive Six Sigma Training 2. Leading Six Sigma Management Training 3. Champion Training and Project Selection Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Workstream #3 - Employee Training & On-Boarding Workstream #3 Employee Training & Onboarding Client Reaping Program Benefits 1. Black Belt 2. Green Belt 3. Yellow Belt 4. Design For Six Sigma Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Workstream #4 - Transition Training & Implementation Workstream #4 Transition Training & Implementation Client Prepared to Train Future Waves 1. Right to train, reproduce materials, receive updates, content revisions and change notices. 2. Train-the-Trainer 3. Transition Planning Six Sigma Qualtec – All Rights Reserved June 26, 2002 Six Sigma Qualtec Improving Your Business Results Workstream #5 - Initiative / Project Management Workstream #5 Initiative & Project Management Activities Client Attains Self Sufficiency & is Self Sustaining 1. Account Management/Executive Coaching 2. Evaluation and Certification System Six Sigma Qualtec – All Rights Reserved June 26, 2002