improving your business results six sigma qualtec six sigma qualtec six sigma qualtec – all rights...
TRANSCRIPT
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 1
CONTINUOUS IMPROVEMENT PROGRAM BASICS AND ALTERNATIVES
There is no single “right” way …
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 2
Deployment Alternatives
Drive Improvement(Push Model)
• Deployment Ofc (“DO) sets foundation up-front and the deployment is highly prescriptive
• DO assumes ownership over execution of business unit projects
• DO has central management of resources; project staff are loaned out to business units
• DO manages external staff procurement where and when required
• DO implements std policies and procedures
• DO measures knowledge transfer & deployment
Respond to Efforts(Bottom Up Model)
• Process Owners & Members are the drivers of change & deployment is highly responsive to needs
• DO provides a centralized supporting function to assist project teams with practices & processes
• DO provides centralized training, resourcing and procurement support to BU project teams
• DO supports benefits reporting and knowledge management
• DO coordinates enterprise functions such as communications
Support Improvement(Pull Model)
• Leadership is the Primary Instrument of Change; DO is highly advisory
• Ownership of standards, processes and reporting
• Delivery accountability remains with business unit personnel
• DO coordinates enterprise functions such as communications
• Management systems measure process metrics
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 3
Basic Elements of All Deployments
All CI Programs Function at Three Levels– Strategic. The organization converts its strategy into
operational goals. This is normally done using Scorecards– Governance. The organization governs its improvement
efforts (see “Type of Deployment”). A primary function is project selection.
– Implementation. At this level, the organization drives projects & knowledge transfer. This is the project management and problem solving level.
Executive Brief: Driving Value Through Operational Excellence
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 4
Strategic
Performance must be measured and
managed, regardless of
deployment model
Executive Brief: Using Scorecards as part of BPM
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 5
Governance
Drive Effort(Push Model)
• DO Develops Business Cases
• Project Approval• Project Prioritization • Project Management• Contract Management• Resource Management• Cost & Schedule Control
Support Improvement(Pull Model)
• DO Facilitates the Creation of Business Cases
• Project Schedule• Issue Tracking & Reporting• CI Tools and Support• Integrated Project
Reporting• Project Repository• Project Consulting &
Mentoring• CI Training & Certification• CI standards, methodology
& processes
Range of CI Governance Elements Depending on
Type of Deployment
The role of your “Deployment Office” (DO) in Governance varies based on deployment type
Executive Brief: Driving Value Through Operational ExcellenceArticle: Operational Governance – What is it Anyway?
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 6
Implementation
Drive Effort(Push Model)
• Highly Prescriptive• DO assumes ownership
over execution of business unit projects
• DO sets policies and procedures
• DO drives benefit assurance and knowledge management
• DO coordinates enterprise functions such as communications
Support Effort(Pull Model)
• Highly Responsive• Accountability remains
with business unit• DO provides centralized
support to assist project teams
• DO provides centralized training to business units
• DO supports benefits reporting and knowledge management
• DO coordinates enterprise functions such as communications
Range of CI Implementation Elements
Depending on Type of Deployment
The role of your “Deployment Office” (DO) in implementation varies based on deployment type
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 7
Infrastructure Elements of All Deployments
Organizational Infrastructure– Any enterprise initiative, including a
Continuous Improvement Program, must consider how it interacts with enterprise level functions such as communications, finance and HR
– There are specific CI attributes to all these enterprise issues
7
Article: 10 Elements of CI Infrastructure
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 8
TRADITIONAL PUSH MODELDriven top-down, PUSHED into the organization
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 9
Push Model Overview
• History – Attributed to GE as followers emulated perception of a top down model. Failed to consider GE’s readiness for organizational change and focus on “A” side
• Focuses on the knowledge to be transferred. Assumes that by providing the organization the capability, it will solve problems as encountered.
• Measurement of success is in terms of number of belts trained/certified, number of projects completed, “documented” project savings and ROI on training dollars
• Implementation prescribes population to receive grades of training, # of projects per belt and required savings per project. Targets building capability and then requiring output.
• Strengths – Easily understood project plans. Scales quickly. The Army is taught to march and then made to march.
• Challenge – Takes on its own life, irrespective of company needs. Can be rejected by business outright or thru weak compliance.
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 10
Change Structure is Highly Prescriptive
Is mentor, trainer, and coach of Black Belts and others in the organization. Brings the broad organization up to the required competency level.
Is a leader of teams executing projects. Introduces the methodology and tools to team members and the broader organization.
Delivers successful small, focused departmental projects using the success strategy.
Participates on the project teams. Supports the goals of the project, typically in the context of existing responsibilities. Is expected to control processes post improvement implementation as part of job.
MBB
LSS Black Belts
Champions
LSS Green Belts
LSS Yellow Belts & Other Team Members
Is responsible for coordinating a business roadmap to achieve improvement. Selects projects, executes control, and alleviates roadblocks for projects in his or her area of responsibility.
1 to 2 %
5 to 10 %
25 to 50 %
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 11
Basic Elements - Five Work Streams
Initiative Planning & Startup Assessment, HR, Finance,
& Communications)
Prepared to Direct Activities
Executive Training
Exec’s prepared to lead program
Employee Training (BTT,
Lean, YB, GB, BB, MBB and DFSS
Reaping Program Benefits
TTT for all materials and the Alignment
Workshop
Prepared to train future
waves
Acct Mgmt, Exec Coaching, Eval & Certification,
Project Tracking
Attain Self Sufficiency
Workstream #1
Workstream #2
Workstream #3
Workstream #4
Workstream #5
Phase I Phase 2 Phase 3 Phase 4 Phase 5
AssessmentHR & FinanceCommunications Awareness
Executive & Champion Trng
Champion Champion Champion Champion
BB, YB & KaizenProject Support & Mentoring(As Req.)
BB, GB & YB(internal BB’s do PS&M)
BB, GB & YB(internal BB’s do PS&M)
DFSSPS&M (AR)
GB TTT 5d BB TTT DFSS TTT
Deployment Planning Sessions
Project Tracking
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 12
Push Model – Advantages & Challenges• Highly prescriptive• Easily scalable and builds capability quickly• Measures success in terms of deployment factors (projects
completed, “realizable” savings per project, # belts trained & certified, etc.)
• May be perceived as another initiative and not as a fundamental change in the way things are done
• Big investment in training up-front, more training centric. Project returns (ROI) are slower. Risk of burn out before any results can be realized
• Can take a life of its own, becoming a cost center• Best at responsive, top down organizations with supportive
and actively engaged top leadership
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 13
SSQ’S PULL MODEL
Supported top-down, PULLED and consumed by organization in a right-fit manner
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 1414
Pull Model – Business Need & Result Driven
• Identify Scorecard KPI’s focused on VOC & VOB• Align the business processes and establish measurement systems
to uncover critical performance gaps based on those KPI’s (BPMS & CTCR)
• Establish process control systems and capabilities that stabilize processes and sustain improvements (BPMS)
• Charter projects for performance gaps which align with key business needs and have clear ROI (Governance)
• Drive improvements to close the gaps thru application of proven tools such as BTT, LSS & DFSS (Implementation)
• Projects get executed creating new projects• Training is matched to the projects emerging from alignment
workshops. As processes stabilize and data integrity grow, belts’ capabilities are “laddered” to meet project complexity.
Article: Let Your Business Define Your Improvement Program
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 15
Deployment OrganizationExecutive
Team
CI Leadership
Business Unit Leadership
Steering Committee
Trainers & Support
Mat’l Dev & Maintenance
Project Execution
Shared Svcs (HR, Fin, IT)
Process Owners
Process Team Member
Business Unit Support
Projects
Governance
Training & Support
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 16
Basic Elements - Five Work Streams
Initiative Planning & Startup RADD, Policy Deployment,
HR, Finance, Communications)
Prepared to Direct Activities
Executive Training
Exec’s prepared to lead program
Employee Training (BTT,
Lean, YB, GB, BB, MBB and DFSS
Reaping Program Benefits
TTT for all materials and the Alignment
Workshop
Prepared to train future
waves
Acct Mgmt, Exec Coaching, Eval & Certification,
Project Tracking
Attain Self Sufficiency
Workstream #1
Workstream #2
Workstream #3
Workstream #4
Workstream #5
Phase ISix Mo.
Phase 2Six Mo.
Phase 3Six Mo.
Phase 4Six Mo.
Phase 5Six Mo.
Alignment Workshop
Executive & Director Training
Foundations of Continuous Improvement
Yellow Belt
Project Support & Mentoring
GB UpgradeAdd’l
Awareness
BB UpgradeAdd’l 10 d (3x)PS&M (AR)
DFSSAdd’l 5 to 8 d (3x)PS&M (AR)
Alignment WS TTT
PE & Kaizen TTT
Exec TrngDirector
Trng YB TTT
GB TTT 5d BB TTT 10dDFSS TTT
BPMS & Project Chartering
BPMS & PC Consulting
Communication Plans
Project TrackingHRFinance
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 17
Training is a Function of…• Projects
• Process Stability• Availability of Metrics
Use the identification of projects and natural cascading effect of projects, which produce
opportunities along the way to resolution, to drive training
Let Your Business Define Your Improvement Program
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 18
Additional Supporting Articles
Article: BPM and Lean – For Many Service Oriented Organizations, Enough to Get Big Improvement Results
Article: Lean Paves the Road for Six Sigma…especially in Service Organizations
Article:Lean or Six Sigma – That is the Question …
Article: Getting Results with Lean is not just about Lean Tools
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 19
WHICH MODEL IS RIGHT FOR YOUR ORGANIZATION?
Decision Variables
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 20
Organizational Readiness• To help design CI programs, SSQ utilizes a proprietary Organizational Deployment
Readiness model that looks at 5 different dimensions of readiness:– Many CI deployments, over time, falter, stall or fail– The business process improvement methodologies have been proven to work, so what’s
the reason for sub-performing CO programs? – Many times, deployment failures can be traced to a mismatch between the Organizations
Readiness for change and which methodologies are being deployed– In our experience there are 5 main “Dimensions of Readiness” that impact CI program design:
Article: Let Your Business Define Your Improvement Program
See Appendix B for Detail of Model
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 21
Which Model is Right?
PUllProcess Maturity Objectivity
Leadership
(Support)Tools Change
Push Model requires mature processes, ready & knowledgeable organization, and driven & supportive leadership. If not present, the Push Model’s effectiveness is weakened as you require the Pull Model’s greater focus on strategic linkage and program governance. Pull Model will work
at either end of the spectrum but always requires significant investment in governance which can be somewhat avoided when the circumstances
allow for the Push Model.
Pu
llP
ush
See Appendix B for Detail of Model
Improving Your Business ResultsImproving Your Business ResultsSix SigmaQualtecSix SigmaQualtec
Six Sigma Qualtec – All Rights ReservedSix Sigma Qualtec – All Rights Reserved 22
Six Sigma Qualtec (SSQ)www.ssqi.comblog.ssqi.com
Contact:John Lopez-Ona
Tel: 609-356-1450Email: [email protected]