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... a business strategy for achieving and sustaining
world class performance
S I G M AB R E A K A W A Y P E R F O R M A N C E
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Topics for Discussion
Why pursue Six Sigma Improvement?
What is SIGMA Breakaway Performance?
What is PwCs approach to supporting Sigma implementation?
What are the Critical Success Factors? Where else is Sigma being applied? How is PwC involved?
What couldSix Sigma implementation look like for you?
How do PwCs other capabilities support effective Sigmaimplementation?
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Why Pursue Six Sigma Improvement ?
Why do you need to consider using a Six Sigmaapproach? Existing process improvement efforts may not have delivered the financial
benefits promised?
Productivity goals and financial results are not meeting organizational targets? Core processes are still out of alignment with organizational strategy?
Where will you apply the Six Sigma Methodology in the
longer term for cumulative impact of results? Improve throughput on key processes; allow for increased capacity; reduce the
amount and cost of rework; reduce the cost of processing?
Where is the Pain in your organization?
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What is SIGMA Breakaway Performance?
Strategy Integration Across-the-board, large-scale integration of fundamental changes
throughout the organization impacting and linking people,
processes, and customers to achieve and sustain
breakaway results.
Process Focus Focus on improving business processes using tools and
methodologies targeted at reducing variation and defects, reducingcost, building capacity, improving control and dramatically
improving business results.
A vehicle for strategic change an organizational approach
to performance excellence.
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Six sigma is also a measure of variability. It is a name given to indicate howmuch of the data falls within the customers requirements. The higher the
process sigma, the more of the process outputs, products and services, meetcustomers requirements or, the fewer the defects.
Sigma is the Greek letter that is a statistical unit of
measurement used to define the standard deviation
of a population. It measures the variability or spread
of the data.
What is Sigma?
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Sigma Business Improvement Concept
Mindset: a discipline
Methodology for improvement
Measurement of performance
Traditional process analysis starts by examining the process inside theorganization. Sigma looks at the market and customers and then asks
how you can minimize defects in their terms.
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PwCs Multifunctional ApproachPwCs ability to integrate and align Sigma with your business purpose.
TECHNOLOGY
PROCESS MANAGEMENT
CHANGE MANAGEMENT
BUSINESS STRATEGY
ANALYZE PLAN FOCUS BUILD
Sigma implementation linkage to strategy
Management of business processes
Committed leadership, communication, incentives, training
Enabler of process improvement and flow of data
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Critical Success Factors for EffectiveSigma Implementation
Establishing these factorsprovides the seeds ofsuccess.
They need to be integrateduniquely to fit each
business.
The most powerfulsuccess factor iscommitted leadership.
They are all necessary forthe best result.
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Process Management
PwCs Sigma Breakaway Methodologies
DFSS generates new processes,products, services, and or plants
SIGMA Improvement Processimproves existing processperformance
Process Management is the
system that enables leverageand sustaining gains achievedby DFSS and SIGMAImprovement Process
The three principal methods used in the Implementation Phase are: The
SIGMA Improvement Process (DMAIC), Design for Six Sigma (DFSS), andProcess Management
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Black Belt
MBB
Train-the
Trainer
BBDMAIC
Train Coach
DFSS
LEAN
ADVANCED DOE
Green Belt
PwC Six Sigma Support Services
LEADERS
PLANT MGRS
CHAMPIONS
5 Hours Awareness Training
3 Days Training with Simulation
1 Day Awareness Training
MFG
NON-MFG
Train Coach
5 Days Basic DMAIC
BB Prerequisite
2 Weeks Leadership,
Change Mgt.,Adv.Stats.
MBB Prerequisite
1 Week Teaching Skills
20 Days with Heavy DOE
Certification Available
15 Days with Light DOE
Certification Available
BB Prerequisite
5 days Training with Simulation
BB Prerequisite
Classical DOE, Taguchi, Shainin
5 days Training
BB Prerequisite
10 Days DMEDI
DFSS at
e-speed
Consulting and Infrastructure Development
DFSS for e-business
strategy implementation
PROCESS MGMTProcess management for process owners
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PwC Six Sigma Capabilities
PwC has global deployment capability of Six Sigma Professionals Prior Business and Industry experience, many having held senior leadership
positions Six Sigma Senior Program Managers Experienced Master Black Belts and Consultants Experienced Black Belts
Six Sigma Professionals deliver consulting services in: Executive Coaching Champion Coaching Master Black Belt and Black Belt Coaching Six Sigma Planning, Deployment, and Implementation Six Sigma Training Strategic Planning Communications Change Management
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PwC Deployment Capability
Asia Pacific: 3-4 Consultants who teach methodology in Mandarin Chinese
Senior Program Manager
MBBs
BBs
Totals
824
33
65
US EMEA AsiaPac
4 16 3
10 8
20 12
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PwC Six Sigma Clients
Chemicals LG Chemicals
DuPont
SKW Chemical
Air Products and Chemicals
Dow Chemical
Vehicles
Bombardier
Lear Corporation
Dow Automotive Dana Corporation
Caterpillar
Services
GE Capital J.P. MorganChase
AIG (Insurance)
American General
Allstate
GMAC Mortgage
Unifi Web HR (Outsourcing)
Penske
Others
Johnson & Johnson
Gateway Philips
LG Telecom
LG Caltex Oil
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PwCs SIGMA Breakaway Performance- A Powerfully Integrated Approach
I. ANALYZEConduct business diagnostics to assess overallreadiness, potential rewards, and identify gaps.
II. PLAN
Discover opportunities and develop a plan toclose gaps and integrate PwCs SIGMABreakaway Results.
III. FOCUSClose gaps and collaborate on the best
opportunities to drive out costs and increaserevenues.
IV. BUILD
Enable and motivate an organization to sustain
and multiply improvements.
PwC guides you from strategy through implementation to results.
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Analyze
Evaluate the readiness of any
organization to implement Six
Sigma.
Profile the organizations current
alignment with its market place andidentify crucial gaps.
Establish performance benchmarks
and identify sigma opportunities.
Conduct business diagnostics to assess overall readiness,
potential rewards, and identify gaps.
Competitive analysis results
Identification of:
Process performance gaps relative to
customer needs and competitors
Existence of process management
framework and ownership for
business results
Initial sigma opportunities
Evaluation of organizational barriers to
Six Sigma implementation:
Existence of change vision
Appropriate business structure and
systems
Readiness for change.
Outputs
Methods:Research, Customer surveys,Focus groups, Interviews.
PwC guides your organization in analyzing where opportunities lie that will align
business process and employees directly with marketplace requirements.
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PlanDiscover opportunities, develop a plan to close gaps and integrate
SIGMA Breakaway Performance.
Integrate Six Sigma tactics and thinking with
the overall business strategy.
Determine performance targets for core
business processes.
Define roles and responsibilities of senior
leaders and process owners.
Finalize the Six Sigma implementation scope,
schedule and deliverables.
Develop strategy to manage and communicate
change, sustain organization perception of Six
Sigma as a part of daily work life.
Engage a living document review process
and develop a team process integration andstrategy.
Links process to business strategy
Development of:
Gap action plan
Communication plan
Strategy to manage and sustain change
Understanding of SIGMA Breakaway Performance Implementation of:
Success measures (net benefits)
Scope and strategy integration
Identification of:
Core processes and performance targets
Core process owners roles and responsibilities
Core process sigma performance.
Outputs
Methods:Facilitated management off-site,mentoring and consulting.
The drive to achieve world-class performance is based on customer and competitor analysis,so not all processes need to be at Six Sigma. PwC helps you target resources to where
improvements will have the greatest impact.
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FocusClose gaps and collaborate on best opportunities to drive out cost
and increase revenues.
Develop the knowledge and discipline
needed for business unit managers to
implement Six Sigma effectively.
Refine approach to monitor Voice of
the Customer and process
performance.
Refine and strengthen the foundation
for process management evolution.
Translate strategies and customer
alignment requirements into business
unit strategy.
Identify specific next steps.
Implementation of:
Action plans previously identified
Review, replication and standardization processes
Communication and change management plan
Voice of the Customer monitors
Development of:
Core process and subprocess maps
Timelines and targets for six sigma net benefits
Understanding of SIGMA Breakaway Performance
Identification of:
Process owners roles and responsibilities
Core processes that have strategic impact
Process management disciplines
Selection of: Potential Black Belts and Master Black Belts
Projects for improvement teams.
Outputs
By integrating Six Sigma methodology with existing systems and processes, business strategy,
and key performance measures, PwC helps organizations empower employees to create a culture of
exponential improvement - an organization with unlimited potential for continued growth and success.
Methods: Facilitated workshops, mentoringand consulting.
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BuildEnable and motivate an organization to sustain and multiply
improvements.
Partner with organization to launch Six Sigma
projects and build in-house skills, discipline, and
capabilities.
Leadership and teams use the Sigma
Improvement Process to support and sustain
growth, engage ongoing improvements and
multiply bottom-line results. Employees are engaged in process management
and improvement on a daily basis.
Certified Black Belts usually complete a project
within 2-3 months.
Customer requirements and satisfaction is part of
executing every activity - by every employee-
every day.
Experience demonstrates projects generating
results usually within just 4-6 months, not
including quick-wins.
Identification of:
Specific project goals and objectives
Critical customer requirements
Problems statements
Valid root causes
Process inefficiencies
Development of: Solution ideas and evaluation criteria
New process model
Measurements and metrics to assess performance
against goals
Implementation and communication plans for
solution concepts
Implementation of:
Improvement Solutions
On-going measurement and process management
Continuous improvement process.
Outputs
Real-world experience shows that each Black Belt within a organization has the
potential to produce up to $1,000,000 in Six Sigma gains per year.
Methods:Facilitated workshops, training,mentoring (coaching) and consulting.
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The PwC methodology includes skill transfer through
just-in-time development and facilitation of project teams
and Black Belts.
Sigma Improvement Process: DMAIC
Focuses on real problemsdirectly related to the bottom-lineRealizes results in 4-6 months
Utilizes multiple tools andtechniques including rigorousstatistical methods when needed
Sustains improvement over thelong-term
Disseminates improvementthroughout the organization
Acts as an agent of change
Define Opportunities
Measure Performance
Analyze Opportunity
Improve Performance
Control Performance
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Black Belt Training - DMAIC
Week 1 - Define& Measure
Six Sigma Simulation
Project Chartering
Process Mapping
Voice of Customer
Data Collection
Sampling
MSE
Variation
Sigma Calculations
Week 2 - Analyze
Review of D&M
Statistical Thinking
StratificationRoot Cause Analysis
Regression Topics
Hypothesis Testing
Creativity
Week 3 - DOE
Design of Experimentswith Case Studies
Week 4 - Improve &Control
Generate Improvement
Ideas
Select Solutions
Manage Change
Piloting Solutions
Process Management
Project Closeout
MINITAB Software is Used for all Statistical Applications
Typical Black Belt Training - DMAIC
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Sigma Roles/Responsibilities
Focuses on significant improvements in
effectiveness and efficiency
Uses SIGMA tools and conducts project
activities based on the methodology
Develop Skills and Lead
Experienced in the utilization of the SIGMA
Improvement Process and basic statistical tools
Acts as change agent and resource for project
teams
Train, Coach, and Advise
Seasoned Black Belts
Provides advice and coaching for SIGMA
Breakaway Performance and advanced
statistical tool use
Assists change implementation
Consultant member of business management
team
Black Belts
Senior LeadershipTeam
ImprovementProject Team
Team SupporterEmployees
Provides expert subject matter knowledge
Provides resources, and moral support
Implements deployment strategy
Manages for results
Implements change goals
Establishes sigma targets based on the customer and
business requirements
Develops the deployment strategy
Provides ongoing review of results
Establishes change goals
Master
Black Belts
BusinessManagement Team
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Typical Deployment Timeline
Assessment
Analyze & Focus:Strategic Direction
Plan:Business GroupMobilization
ChangeInfrastructure
Change Management/Communication
Process Management
Project Management
Infrastructure Development
Mth 1 Mth 2 Mth 3 Mth 4 Mth 5 Mth 6 Mth 7 Mth 8 Mth 9 Mth 10 Mth 11
StrategicPrioritiesWorkshop
Year 1
Planning &
Team
Mobilization
Business
Group 1
Program
Configuration
Build:Black/GreenBelt Knowledge
Wave 1
Wave 2
Wave 3
Business
Group 2
Business
Group 3
CoachingCoaching Coaching Coaching
Coaching Coaching Coaching Coaching
Coaching Coaching Coaching Coaching
ChampionsWorkshop
ChampionsWorkshop
Champions
Workshop
LeadershipTeam
Workshop
LeadershipTeam
Workshop
LeadershipTeam
Workshop
Leadership Reviews of Black Belt Projects
Leadership Reviews of Black Belt Projects
Leadership Reviews of Black Belt Projects
Leadership Reviews of Processes
Leadership Reviews of Processes
Leadership Reviews of Processes
Executive leadership Review of Six Sigma Deployment and ImplementationExecutiveWorkshop
Six Sigma
Process
Centered
Enterprise
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The PwC methodology includes skill transfer through
just-in-time development and facilitation of project teams
and Black Belts.
Design for Six Sigma: DMEDI
Focuses on development of newproducts, services, processes, andplants that precisely meet customer
current and future needs Realizes results in 6-36 months
depending on type of project
Utilizes multiple tools andtechniques including rigorousstatistical methods when needed
Sustains improvement over thelong-term
Disseminates improvementthroughout the organization
Acts as an agent of change
Define Opportunities
Measure Customer Needs
Explore Design Concepts
Develop Detailed Design
Implement Detailed Design
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Black Belt Training - DFSS
Session 1-Define
Session 2 -Measure
Session 3 -Explore
Session 4 -Develop
Process ModelTM ,QFD Capture TM, and other software are used for developing the new design.
Session 5 -Implement
Develop
Project Charter
Plan theDesign Project
Gather Customer
Needs
DefineProduct/Service
Requirements
Develop Product/
Service Conceptual
Design Predict Designs
Sigma Capability
Develop Product/
Service Detailed
Design Develop Production
Processes
Perform Pilot
Testing
DevelopImplementation
& Transition Plans
Project Closure
Typical Black Belt Training - DFSS
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Sample Sigma Implementation Plan
What would an initial Sigma implementation plan look like?
Charter
Elements Description
Objectives
Increase capacity, throughput, and quality of customer service and collections
Improve efficiency, decrease cost of loan origination
Reduce rework; saving costs and improving cycle time
Improve customer satisfaction of dealer customers and loan holders
Scope
Examples: Manufacturing, Collections, Procurement, Distribution, Sales & Marketing
Engagement Duration: 9-12 months
Project Duration: 4-6 Months per project
ResourceCommitment
15 Project Teams (over 12 month period). Start with 5-10 projects, then expand 6-10 Black Belts (fulltime, 2 projects per BB); 6-10 Champions or Sponsors
2-4 Team members per project team (part-time)
TrainingCommitment
Black Belts: 15-20 days/ 2-3 waves = 30-600 days of training support
Champion Training: 3 days with Tollgate Reviews
CoachingCommitment
On-site coaching with Black Belts and Teams 1 day per week per Black Belt = 150 240 days of coaching and implementation support
Project Reviews with PwC Master Black Beltsand Executive Sponsors 1 day per
month per Black Belt = 4060 days of strategic review and planning support
Results Conservative Benchmark Savings per Black Belt: $175k-250k per project
Potential Total Savings: $2.0 - $3.0 million
Potential Net Savings: $1.0$ 2.0 million during the first year
Build internal capacity (trained Black Belts) to complete more improvement projects
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PwCs Multi-disciplinary ConsultingCapabilities Support Sigma Implementation
Leaders Developing Leaders (Tichy)
Process Simulation
Process Management / Measurement
Voice of the Customer Relationship
Management
Benchmarking / Best Practices
Knowledge Management
Business Process Re-engineering
E-business strategy and implementation
Change Management (Organizational
Design, Alignment, Communications,
Reward / Consequence) Benefits Realization Development
Activity Based Costing/ Management
ERP Support (SAP, Oracle, PeopleSoft)
Systems Integration Support
PwCs offices throughout the country (and the world) maintain thousands of
experienced consultants in practice areas that can directly support the successful
implementation of SIGMA Breakaway Performance.