is 788 7.21 is 788 [process] change management lecture: six sigma presentation and discussion:...
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IS 788 7.2 1
IS 788 [Process] Change Management
Lecture: Six Sigma Presentation and Discussion: Breaking
the Functional Mindset
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Six Sigma An extremely popular and highly regarded
continuous process improvement methodology
Directly traceable to earlier quality assurance movements and methods
‘Scientific Management’ begins with Fredrick Taylor
The term “Taylor-esque” is frequently used pejoratively to indicate rigid, detail obsessed management techniques
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Those who do not understand history . . . (class?)
Scientific management evolved into the “efficiency experts” of the 30’s and 40’s and the clipboard and stopwatch toting “industrial engineers” of the 50’s.
We owe much progress beyond this to the adoption by Japanese companies of the teachings of an American “QC guru”, Edwards Deming
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Deming’s contribution Deming was largely ignored in the US. Prior to Deming, QC = test everything
coming off the assembly line to cull out defects
Deming inverted this: Don’t remove defective products from a
flawed process. Instead . . . Engineer quality into your processes
QC became QA (quality assurance)
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The wake up call for the US
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The wake up call for the US
Toyota vs. GM: 1986 Assembly hours: Toyota @ 50% GM Defects per car: GM almost 300%
Toyota Space for auto assembly: Toyota @
50% GM Inventories: GM @ 4000% of Toyota
(2 hours vs. 2 weeks)
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Statistical Process Control SPC is a forerunner of Six Sigma Both are statistical management
techniques for improving performance
Six Sigma began at Motorola and was thrust to the forefront of management consciousness by Jack Welch of GE
Six Sigma devotees are almost fanatical about adherence to “the method”
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Three types of process change Process Management: what
Harmon (the textbook) terms developing a process architecture
Process Improvement: incrementally improve and maintain process quality
Process Redesign: more radical forms of process change, including what we’ve called redesign and BPR
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Six Sigma attributes
Works best with well understood, currently implemented techniques
Very good at process measurement and using statistical techniques to decide on corrective action
A ‘team approach’ is integral to the methodology
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How Six Sigma got its name
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The goal of Six Sigma
To reduce deviations from the mean
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Tightly scoped projects This helps insure success but may
frustrate some high level managers Short (6-months) Single activity or several tightly-
coupled activities Monitor 2-3 key process indicators Measures should be tied to higher
level processes and ultimately to strategic goals (org architecture modeling)
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Teamwork Teams are more important to Six
Sigma efforts than managers The ‘gung-ho’ team aggressiveness
and adherence to the method are part of its effectiveness.
Examinations and experience take practitioners from “green belt” to “black belt” to “master”
Teams work best with a black belt
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Six Sigma Phases
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Define Understand the process Understand what the effort is to
accomplish The two above factors improve
success 500% of many efforts Dates are important but Don’t be pushed into a premature
statement of when the team will finish
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SS definition technique: SIPOC
SF Seafood is a Running example.
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Goals are important to definition and usually involve customers
Six Sigma likes diagramsand acronyms to make the methodology concrete.
This is great for improvingexisting processes. Not asgood for new projectsinvolving vision.
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Gathering information Goals and measures frequently comes
from customers In the SFS example – good food, on
time. Surveys, one-on-one interviews and
focus groups are common techniques. Six Sigma stresses Pareto analysis;
what measures (and ultimate improvements) are most highly leveraged?
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Step 2: Measure Measure only what is important to the
customer Measure only what you can improve Don’t measure what the customer
hasn’t complained about Only three classes of measure
Inputs (raw materials) Process (cycle time, cost, etc.) Outputs (customer satisfaction)
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Process vs. Outcome
Process measures are objective – ‘hard’
Outcome measures are subjective – ‘soft’
Kano Analysis Basic requirements Satisfiers Delighters
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SF Seafood Measures not tied to customers satisfaction risk
local optimization/global suboptimization Each measure must be carefully specified and
communicated SFS: Goal – 15 min mean, never over 30 min
from order to serve – from customer interviews time from order entry to kitchen finish – PC
system Total time: not recorded by system so must be
observed Factor out food preparation time – this is a
different process!
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Analysis Three categories of activities
Add value that the customer is willing to pay for
Required for value-added activity Non-value-adding
Challenge everything Sometimes activities have “always been
done that way” and yet add no value SFS example: napkin rings See extended example bottom of page
199
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SFS Example, continued
Optimum number of tables per waiter?
Changes in customer traffic. Could busboys help? (This option
could ONLY suggest itself after extensive on-site analysis of the situation)
Always, locate Pareto
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Frequently called an Ishikawa diagram after the originator
Three stage problem analysis:
1. Brainstorm2. Narrow it down3. Design measures
and analyze to see the reality and true scope of the problem.
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SFS Analysis / Improvement Another observation only possible
after multiple on-site observations, was that tables with children were more difficult to service.
Investigate assigning each waiter a ‘fair share’ of family tables
This brought in a new actor: the mater d’ who assigned diners to tables (and thus to waiters)
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More measurement Improvement must be confirmed with
measurement! The changes, in fact, did improve the
process as expected. So, in the Control phase, drop
measurements that are expensive. Optionally, develop a response plan –
in advance – of activities to be performed if performance drops in the future.
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Six Sigma in summary Requires discipline and highly trained
(expensive) people A statistical approach, best for in-place,
well understood processes Contrast with PIP (process improvement
potential) for example A quicker, less costly technique (usually) Determine the difference between the best,
average and worst performers at a task What are they doing? Might complement Six Sigma (think of SSF)