© 2001 stat-a-matrix, all rights reserved brazil presentation november 27, 2001 1 one quality place...

© 2001 STAT-A-MATRIX, All Rights ReservedBrazil Presentation November 27, 2001

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One Quality PlaceEdison, New JerseyOne Quality Place

Edison, New Jersey

Beyond Six Sigma(Fusion ManagementTM)

Presented byDr. Stanley A. Marash, P.E.

Beyond Six Sigma(Fusion ManagementTM)

Presented byDr. Stanley A. Marash, P.E.


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Programmes du JourProgrammes du Jour

5 S’s

Art of Japanese Management

Breakthrough Management

Breakthrough Strategy

Business Excellence Awards

Business Partnerships

Business Process Improvement

Companywide Quality Control

Competitive Advantage

Concurrent Engineering

5 S’s

Art of Japanese Management

Breakthrough Management

Breakthrough Strategy

Business Excellence Awards

Business Partnerships

Business Process Improvement

Companywide Quality Control

Competitive Advantage

Concurrent Engineering

Continuous Quality Improvement

Cost Reduction

Design of Experiments

Downsizing

Eliminate Variation/Consistency

of Purpose

Evolutionary Operations

Fifth Discipline of Learning

Organization

Holistic Management

Continuous Quality Improvement

Cost Reduction

Design of Experiments

Downsizing

Eliminate Variation/Consistency

of Purpose

Evolutionary Operations

Fifth Discipline of Learning

Organization

Holistic Management


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JIDOKA

Just-In-Time

Kaizen

Lean Business System

Lean Enterprise

Lean Manufacturing

Loss Function

Management by Motivation

Management by Objectives

Management by Walking Around

JIDOKA

Just-In-Time

Kaizen

Lean Business System

Lean Enterprise

Lean Manufacturing

Loss Function

Management by Motivation

Management by Objectives

Management by Walking Around

Management System

Managerial Breakthrough

One-Minute Management

Operations Research

Outsourcing

Poka Yoke

Principle Centered Leadership

Process Management

Profit Improvement

Program Management

Management System

Managerial Breakthrough

One-Minute Management

Operations Research

Outsourcing

Poka Yoke

Principle Centered Leadership

Process Management

Profit Improvement

Program Management


4


Quality Circles

Quality Function Deployment

Quality is Free

Reengineering

Reinventing Government

Right Sizing

Short-Interval Scheduling

Single Minute Exchange of Die

(SMED)

Statistical Process Control

Quality Circles

Quality Function Deployment

Quality is Free

Reengineering

Reinventing Government

Right Sizing

Short-Interval Scheduling

Single Minute Exchange of Die

(SMED)

Statistical Process Control

Statistical Thinking

Strategic Planning

Supplier Chain

Teambuilding

Theory Z

Time and Motion Study

Toyota Production System

Total Productivity Management

Total Quality Control

Total Quality Management

Statistical Thinking

Strategic Planning

Supplier Chain

Teambuilding

Theory Z

Time and Motion Study

Toyota Production System

Total Productivity Management

Total Quality Control

Total Quality Management


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Value Analysis

Value Engineering

Vendor (Supplier) Partnership

Voice of the Customer

Work Simplification

World Class Manufacturing

Zapp

Zero Defects

Value Analysis

Value Engineering

Vendor (Supplier) Partnership

Voice of the Customer

Work Simplification

World Class Manufacturing

Zapp

Zero Defects


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What is Fusion ManagementTM?What is Fusion ManagementTM?

The melting down (fusing) of the best ingredients of current and past concepts, methods, tools and philosophies into a powerhouse for business results.

The melting down (fusing) of the best ingredients of current and past concepts, methods, tools and philosophies into a powerhouse for business results.


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Fusion Management TMFusion Management TM

Performance Excellence

Six Sigma

Lean/TQM

Management Systems

Strategic

Level

Tactical Level

Operational L

evel

Systems Level


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Fusion ManagementTMFusion ManagementTM

Performance ExcellencePerformance Excellence Six SigmaSix Sigma Management SystemManagement System

1. Leadership1. Leadership Executive leadershipExecutive leadership Management responsibilityManagement responsibility

2. Strategic planning2. Strategic planning Integrated strategic planningIntegrated strategic planning Strategic quality planStrategic quality plan

3.Customer&market focus3.Customer&market focus Voice of the customerVoice of the customer Customer focusCustomer focus

4. Information&analysis4. Information&analysis Champions/MBB/BB/GBChampions/MBB/BB/GB Analysis of dataAnalysis of data

5. Human resource focus5. Human resource focus Breakthrough processBreakthrough process Resource managementResource management

6. Process management6. Process management ManagementManagement Process approvalProcess approval

7. Business results7. Business results Business resultsBusiness results Quality resultsQuality results


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Six SigmaSix Sigma

ExecutiveLeadership

IntegratedStrategic

Plan

10xMethodology

EnterpriseWide

Deployment

EnterpriseProcess

Management

Voiceof the Customer

BusinessResults

2.

1.

4.

5.

6.

3. 7.


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What Is Six Sigma?What Is Six Sigma?

A management philosophy that uses customer-focused measurement and aggressive goal-setting to drive breakthrough performance in demonstrated, validated business results

A management philosophy that uses customer-focused measurement and aggressive goal-setting to drive breakthrough performance in demonstrated, validated business results


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A Brief HistoryA Brief History

Started by Robert Galvin—Motorola (1987) Followed by Larry Bossidy—AlliedSignal

(now Honeywell) (1991) Encouraged Jack Welch—General Electric (1995) Who encouraged Ken Chenault—American

Express (1998) and George Fisher—Kodak (1999) Followed by many others Reintroduced by Bossidy at Honeywell (2001)

Started by Robert Galvin—Motorola (1987) Followed by Larry Bossidy—AlliedSignal

(now Honeywell) (1991) Encouraged Jack Welch—General Electric (1995) Who encouraged Ken Chenault—American

Express (1998) and George Fisher—Kodak (1999) Followed by many others Reintroduced by Bossidy at Honeywell (2001)


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Fusion ManagementTM What’s New and Different?

Fusion ManagementTM What’s New and Different?

1. Enterprise CEOs driving Six Sigma and performance excellence

2. 10x (order of magnitude) improvements

3. Integrated strategic plan*

4. Key measures relative to business plan

5. Balanced customer requirements/business results

6. Process focused

7. Six steps to Six Sigma (SEP)*

8. Full-time black belts

9. Coaches, mentors, and champions

10. Methods, tool, and sequence to meet business plan

1. Enterprise CEOs driving Six Sigma and performance excellence

2. 10x (order of magnitude) improvements

3. Integrated strategic plan*

4. Key measures relative to business plan

5. Balanced customer requirements/business results

6. Process focused

7. Six steps to Six Sigma (SEP)*

8. Full-time black belts

9. Coaches, mentors, and champions

10. Methods, tool, and sequence to meet business plan


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Requirements Expectations

Strategic Quality Plan

Strategic Regulatory Plan

Strategic Business Plan

Establish Executive Leadership Council

Integrated Strategic PlanUnique Activity

Integrated Strategic PlanUnique Activity


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The Planning ProcessThe Planning Process

Transfer to Operations

Do ItAgain

Identify Customers

Discover Customer

Needs

Translate into Qualities

Establish a Measurement

DevelopProduct

Optimize Product Design

DevelopProcess

Optimize Capability


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# of parts (% overall yield)

or steps ± 3 ± 4 ± 5 ± 6

1 93.32 99.38 99.98 99.99966

10 50.09 93.96 99.77 99.9966

50 3.15 73.24 98.84 99.983

100 0.10 53.64 97.70 99.966

500 – 4.44 89.02 99.830

1,000 – 0.20 79.24 99.661

5,000 – – 31.24 98.314

10,000 – – 9.76 96.66

50,000 – – – 84.36

# of parts (% overall yield)

or steps ± 3 ± 4 ± 5 ± 6

1 93.32 99.38 99.98 99.99966

10 50.09 93.96 99.77 99.9966

50 3.15 73.24 98.84 99.983

100 0.10 53.64 97.70 99.966

500 – 4.44 89.02 99.830

1,000 – 0.20 79.24 99.661

5,000 – – 31.24 98.314

10,000 – – 9.76 96.66

50,000 – – – 84.36

Overall Process Yield vs. SigmaOverall Process Yield vs. Sigma


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Improvement StepsImprovement Steps

DDPPMMOO SSiiggmmaa IImmpprroovveemmeenntt

6666,,881100 33 ——--

66,,221100 44 1100..88XX

223333 55 2266..77XX

33..44 66 6688..55XX

..001199 77 117788..99XX


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Business Process Improvement CycleBusiness Process Improvement Cycle

CRISISCRISIS

Lessons learned applied to future systemsLessons learned applied to future systems

Real cost $1Real cost $1

Non-value added cost $2Non-value added cost $2

$3$3

Design &System Evolution

Design &System Evolution

Product & System Verification

Product & System Verification

System & Product Improvement

System & Product Improvement

System fullyimplemented

The effort before the system is put in place to prevent failures by proper system design

The effort before the system is put in place to prevent failures by proper system design

The effort after the system is put in place to detect deviations from the norm and return the process to that norm

The effort after the system is put in place to detect deviations from the norm and return the process to that norm

The effort to reduce the norm (chronic problems) to lower and lower levels until it finally reaches zero

The effort to reduce the norm (chronic problems) to lower and lower levels until it finally reaches zero

ManagerialBreakthrough

ManagerialBreakthrough

The effort to get out of the box. Achievingdramatic improvementsin critical measuresof performance

The effort to get out of the box. Achievingdramatic improvementsin critical measuresof performance


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What “Six Sigma” MeansWhat “Six Sigma” Means

As the process capability improves, defects become less and less likely

As the process capability improves, defects become less and less likely

-3

+3

Cp = 1.00

-4

+4

Cp = 1.33

-5

+5

Cp = 1.67

-6

+6

Cp = 2.00Cp = 0.67

-2

+2

USL

LSL


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Achieving RobustnessAchieving Robustness

At 6, even process upsets do not produce defects At 6, even process upsets do not produce defects

308,540 ppm66807 ppm

6210 ppm233 ppm 3.4 ppm

+2

Cp = 0.67

+3

Cp = 1.00

+4

Cp = 1.33

+5

Cp = 1.67

+6

Cp = 2.00

USL

LSL


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Interpreting Your Sigma LevelInterpreting Your Sigma Level

Less than 3-Sigma: Process is not meeting the customer requirements

3-Sigma: Process barely meets requirements; no latitude for upsets

4-Sigma: Typical corporate performance 5-Sigma: Excellent performance 6-Sigma: Robust to nearly all upsets

Less than 3-Sigma: Process is not meeting the customer requirements

3-Sigma: Process barely meets requirements; no latitude for upsets

4-Sigma: Typical corporate performance 5-Sigma: Excellent performance 6-Sigma: Robust to nearly all upsets


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Six Steps to Six Sigma

Fusion

Six Steps to Six Sigma

Fusion

Define As-Is ConditionDefine As-Is Condition(Start-up)(Start-up)

Launch Leadership Launch Leadership CouncilsCouncils

Integrated Strategic Integrated Strategic PlanningPlanning

Train Mentors, Coaches, Train Mentors, Coaches, Champions, Green & Black Champions, Green & Black

Belts,Belts,and Master Black Beltsand Master Black Belts

Deploy Master PlanDeploy Master Plan

Cascade Business Cascade Business Results(Ongoing Process)Results(Ongoing Process)


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ExecutiveInterviews ExecutiveInterviews

Baseline EvaluationBaseline Evaluation

Management OrientationManagement Orientation

Six Sigma Planning(Short-Term Plan)

Six Sigma Planning(Short-Term Plan)

Define Macroflow ProcessDefine Macroflow Process

Business Process MappingBusiness Process Mapping

Selection of Pilot ProjectsSelection of Pilot Projects

Project ImplementationProject Implementation

Measure Business ResultsMeasure Business Results

Additional ProjectAdditional ProjectSelection Selection


Select and Train Select and Train Master BB Master BB CandidatesCandidates

Responsibility MatrixResponsibility Matrix

Launch LeadershipLaunch LeadershipCouncils Councils

Integrated StrategicIntegrated StrategicPlanningPlanning

OngoingOngoingProcess Process

Create and DeployCreate and DeployMaster PlanMaster Plan

Cascading InterlinkedCascading InterlinkedLeadership Councils Leadership Councils

Define Measures Define Measures of Successof Success

Select andSelect andTrain Train

Black BeltBlack Belt

Champion TrainingChampion Training

Senior Senior Executive Executive ProcessProcessTM TM

(SEP(SEPTMTM))

QMSQMSPerformancePerformanceExcellenceExcellence Six SigmaSix Sigma

Lean Lean EnterpriseEnterprise


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ExecutiveExecutiveInterviews Interviews

Baseline EvaluationBaseline Evaluation

Management OrientationManagement Orientation

Six Sigma PlanningSix Sigma Planning(Short-Term Plan)(Short-Term Plan)

Define Macroflow ProcessDefine Macroflow Process

Responsibility MatrixResponsibility Matrix Business Process MappingBusiness Process Mapping

Step 1Step 1Step 1Step 1


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Selection ofSelection ofPilot ProjectsPilot Projects

Lean Lean EnterpriseEnterprise

ManagementManagementSystemsSystems Six SigmaSix SigmaPerformancePerformance

ExcellenceExcellence

ChampionChampionTrainingTraining

Launch Leadership CouncilsLaunch Leadership Councils


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Integrated PlanningIntegrated Planning

Define Measures of SuccessDefine Measures of Success


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Step 4Step 4

Champion Champion TrainingTraining

Selection of Pilot ProjectsSelection of Pilot Projects

Project ImplementationProject Implementation Select and TrainSelect and TrainBlack BeltsBlack Belts

Measure Measure Business ResultsBusiness Results


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Create and Deploy Create and Deploy Master PlanMaster Plan

Cascading InterlinkedCascading InterlinkedLeadership CouncilsLeadership Councils


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OngoingOngoingProcessProcess

Additional Additional Project Selection Project Selection

Select and TrainSelect and TrainMaster BBMaster BBCandidatesCandidates

Create and Create and Deploy Master PlanDeploy Master Plan

Cascading InterlinkedCascading InterlinkedLeadership CouncilsLeadership Councils




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Integrated Leadership CouncilsIntegrated Leadership Councils

Senior Executive TeamSenior Executive Team

Plant Leadership CouncilPlant Leadership Council

Division Leadership CouncilDivision Leadership Council

Group Leadership CouncilGroup Leadership Council

CEOCEO

EVPEVPGroup 2Group 2

EVPEVPGroup 1Group 1

CFOCFO EVPEVPEngineerEngineer

EVPEVPQualityQuality

EVPEVPOperationsOperations

Division 2Division 2 Division nDivision n

Facility 2Facility 2

OperationsOperations EngineeringEngineering QualityQuality Etc.Etc.

Division 1Division 1

Facility 1Facility 1 Facility nFacility n


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Topics Covered:Topics Covered: Six Sigma overviewSix Sigma overview Understanding variationUnderstanding variation Teamwork for successTeamwork for success How variables behaveHow variables behave How attributes behaveHow attributes behave BenchmarkingBenchmarking Identifying the problemIdentifying the problem Process mappingProcess mapping Measurement system analysisMeasurement system analysis Cost of QualityCost of Quality Data collection and samplingData collection and sampling Minitab statistical softwareMinitab statistical software Quality Function DeploymentQuality Function Deployment Project managementProject management Project selectionProject selection

Topics Covered:Topics Covered: Six Sigma overviewSix Sigma overview Understanding variationUnderstanding variation Teamwork for successTeamwork for success How variables behaveHow variables behave How attributes behaveHow attributes behave BenchmarkingBenchmarking Identifying the problemIdentifying the problem Process mappingProcess mapping Measurement system analysisMeasurement system analysis Cost of QualityCost of Quality Data collection and samplingData collection and sampling Minitab statistical softwareMinitab statistical software Quality Function DeploymentQuality Function Deployment Project managementProject management Project selectionProject selection Start projectStart project

over next 3 weeksover next 3 weeksStart projectStart project

over next 3 weeksover next 3 weeks

At the completion of this week of training, At the completion of this week of training, you will be able to:you will be able to:

Explain the overall philosophy and Explain the overall philosophy and methodology of Six Sigmamethodology of Six Sigma

Select an appropriate projectSelect an appropriate project Identify critical qualitiesIdentify critical qualities Deploy a data gathering systemDeploy a data gathering system Start the projectStart the project

WeekWeek 11Define & Define & MeasureMeasure


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Topics Covered:Topics Covered: Project reviewProject review Group dynamicsGroup dynamics Diagnosing the causeDiagnosing the cause Performance studiesPerformance studies Process capabilityProcess capability Analysis of MeansAnalysis of Means

At the completion of this week At the completion of this week

of training, you will be able to:of training, you will be able to: Select probable causesSelect probable causes Perform in-depth analysesPerform in-depth analyses Explain key project success factorsExplain key project success factors Facilitate team buildingFacilitate team building

Topics Covered:Topics Covered: Project reviewProject review Group dynamicsGroup dynamics Diagnosing the causeDiagnosing the cause Performance studiesPerformance studies Process capabilityProcess capability Analysis of MeansAnalysis of Means


of training, you will be able to:of training, you will be able to: Select probable causesSelect probable causes Perform in-depth analysesPerform in-depth analyses Explain key project success factorsExplain key project success factors Facilitate team buildingFacilitate team building

Continue project Continue project next 3 weeksnext 3 weeks


WeekWeek 22AnalyzeAnalyze


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Topics Covered:Topics Covered: Project reviewProject review Conflict managementConflict management Cycle time reduction Cycle time reduction Hypothesis testingHypothesis testing Design of experimentsDesign of experiments


of training, you will be able to:of training, you will be able to: Demonstrate and improve process Demonstrate and improve process

characteristicscharacteristics Reduce non-value-added activitiesReduce non-value-added activities Reduce process cycle timeReduce process cycle time Design and analyze experimentsDesign and analyze experiments Manage team conflictManage team conflict

Topics Covered:Topics Covered: Project reviewProject review Conflict managementConflict management Cycle time reduction Cycle time reduction Hypothesis testingHypothesis testing Design of experimentsDesign of experiments


of training, you will be able to:of training, you will be able to: Demonstrate and improve process Demonstrate and improve process

characteristicscharacteristics Reduce non-value-added activitiesReduce non-value-added activities Reduce process cycle timeReduce process cycle time Design and analyze experimentsDesign and analyze experiments Manage team conflictManage team conflict

WeekWeek 33ImproveImprove




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Topics Covered:Topics Covered: Project reportProject report Choosing remedies to correct the causeChoosing remedies to correct the cause Failure mode and effects analysisFailure mode and effects analysis Verifying the remediesVerifying the remedies Implementing the remediesImplementing the remedies Monitoring/holding gainsMonitoring/holding gains Managing changeManaging change Reducing barriers to changeReducing barriers to change Project managementProject management Final examFinal exam

At the completion of this week At the completion of this week of training, you will be able to:of training, you will be able to:

Implement solutionsImplement solutions Monitor and control improvementsMonitor and control improvements Facilitate overcoming barriers to changeFacilitate overcoming barriers to change

Topics Covered:Topics Covered: Project reportProject report Choosing remedies to correct the causeChoosing remedies to correct the cause Failure mode and effects analysisFailure mode and effects analysis Verifying the remediesVerifying the remedies Implementing the remediesImplementing the remedies Monitoring/holding gainsMonitoring/holding gains Managing changeManaging change Reducing barriers to changeReducing barriers to change Project managementProject management Final examFinal exam

At the completion of this week At the completion of this week of training, you will be able to:of training, you will be able to:

Implement solutionsImplement solutions Monitor and control improvementsMonitor and control improvements Facilitate overcoming barriers to changeFacilitate overcoming barriers to change

WeekWeek 44ControlControl




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Fusion ManagementTM Milestone ChartFusion ManagementTM Milestone Chart

Week(s)Week(s) EventEvent

11 Five day start-upFive day start-up

44 Macroflowchart/responsibility matrixMacroflowchart/responsibility matrix

5-155-15 Business process mapBusiness process map

7-167-16 Champion training/leadership councilChampion training/leadership council

9-359-35 Integrated strategic planningIntegrated strategic planning

1111 Select black belt candidatesSelect black belt candidates

1111 Select pilot projectsSelect pilot projects

1212 Awareness trainingAwareness training


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14-2914-29 Black belt training project-Wave 1Black belt training project-Wave 1

15-6015-60 Monthly leadership meetingsMonthly leadership meetings

1616 Green belt training-Wave 1Green belt training-Wave 1


30-3430-34 Project clean-upProject clean-up

3535 Leadership council project presentationsLeadership council project presentations

Graduation celebrationGraduation celebration

3535 Identify master black belt candidatesIdentify master black belt candidates

36 Site license


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3737 Master black belt workshopMaster black belt workshop

38-5338-53 Black belt training and project-Wave 2Black belt training and project-Wave 2


5454 Master black belt workshopMaster black belt workshop


55-5955-59 Project clean-upProject clean-up

6060 Leadership council project presentationLeadership council project presentation

Graduation celebrationGraduation celebration

Technology/knowledge transferTechnology/knowledge transfer


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Where do we go from here? Where do we go from here?


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Thank You For Your Time

STAT-A-MATRIX

Thank You For Your Time

STAT-A-MATRIX

© 2001 stat-a-matrix, all rights reserved brazil presentation november 27, 2001 1 one quality place...

Documents

jour u jidoka u

motivation u management

objectives u management

sigma fusion management

quality place edison

new jersey

past concepts

best ingredients of