ppm leadership in six sigma and beyond - j.o.p...
TRANSCRIPT
PPM Leadership in
Six Sigma and Beyond
Business PMOBusiness PMONew Product
Development
New Product
Development Lean / Six SigmaLean / Six Sigma ITIT
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Credentials
Jim Pearson is a Quality and Business Management expert with over 30 years industry experience. He has guided Quality and Business Process Improvement initiatives leading to sustainable operational improvement and Organizational Change leveraging Lean Sigma Methodologies for large global enterprises as well as a range of other corporations and not-for-profit organizations. He has been recognized as the VP Six Sigma Leader of the Year by WCBF for his work at EMC and is a frequent guest lecturer in operations management at the University of Massachusetts.
He was formerly the Vice President of Business Operations at EMCCorporation, the world’s technology and market leader in intelligent enterprise storage systems. He also created EMC’s Executive Customer Advocacy program and was the Vice President of Customer Quality and Six Sigma where he lead the worldwide implementation of Six Sigma. He has held senior roles in Enterprise Alliances, Customer Service and Manufacturing. His previous work experience includes technical appointments at AT&T and as a Management Consultant for Coopers & Lybrand (now PwC).
Born in Boston, Massachusetts, Pearson holds a B.S. in Mechanical Engineering from the University of Massachusetts, Amherst and an M.S. in Mechanical Engineering from Northeastern University. He is an active member in the American Diabetes Association. He is also a certified Lean Six Sigma Black Belt.
Copyright © 2010 JOP Consulting
Lean Six Sigma Beyond Process Maps
Delving into the cultural impacts of an Implementation
Jim Pearson
February 9, 2010
4* From the EMC web page: www.emc.com
Six Sigma Officially Proposed to CEO
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EMEA Summit held in Cork; Jim Pearson named “Six Sigma VPof the year” by WCBF; 17,500 employees SS trained in Fundamentals; 1,000+ projects / 60% complete
2001 2002 2003 2004 2005 2006
LeanManufacturingdebuts in Apex
100% of Apexemployees
trainedin Lean
Six Sigmalaunched
company-wide
Lean extends tosupply chain
partners;Lean Kaizen
events expandworldwide
SS projectslaunched in
Manufacturing,Supply Chain,Engineering,
CS, TS, Finance,IT, HR, Legal;
benefits exceedgoal by 25%
Lean expanded toenterprise level in
non-manufacturingareas;
Lean Kaizen eventsinitiated to help TCE
CEO, EVPs attendGreen Belt training,share best practiceswith 3M; EMC brandsTCE (“the what”) withSS (“the how”);benefits exceed $100M
Lean andSix Sigma
merge
Worldwide Operational ExcellenceCommittee (WW OEC)launched to tie projects to TCE
Lean and Six Sigma End Game
Six Sigma Officially Proposed to CEO
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Customers First
Sense of Urgency
Results-driven / Accountability
Integrity
Innovation
EMC’s Unique and Winning Culture
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Expertise/Quality
Understanding the Business
Teamwork
Communication
Adaptability
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Executive Kickoff Meeting
� The Goal� Understanding the potential Impact
� Why Six Sigma� Customers
� What is it� Structured Problem Solving
� How is it different� Current vs. Future Activities
� Why now� Operational Excellence, Career Planning
� Critical Success Factors� Ownership, Visibility, Flexibility, Standards, Leadership
� Outcome …
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The Next 5 months
� Continue to be the Best Storage Company in the World
� The Detailed Business Plan
� Formal Top-Down Communication
� Creation of the Program Management Office
� Bottom-up Communication
� Executive Training
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August 2002
QD:
What do you think of Six Sigma?
Juran:From what I've seen of it, it's a basic version of quality improvement. There is nothing new there. …
Most people don't even understand what Six Sigma means. It is a goal. A goal of very few defects, down to defects per million.
[the concept] originally started with Bob Galvin, the former CEO of Motorola.
The name Six Sigma comes from a measure of what we call process capability … Now, to my knowledge, that concept of process capability goes back to 1926, when I was a young engineer at Western Electric.
.
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Enterprise Performance Tracking
Manage:� Strategies� Goals� Targets� Programs� Project teams� Deliverables� Commitments� Results
Roll-up to: • Executive Dashboards
• Balanced Scorecards
• Strategic Goals, etc.
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Program Tracking Design
� Management Visibility� Executive summaries with drill down� Cross-functional, Organizational, Individual Projects
� Customer based projects
� Day to Day Activity Tracking� Idea capture
� Project creation and approval � Project life cycle tracking
� Benefits roll-up and reporting
� Project replication and follow-on activity
� Organizational Metrics� Alignment of projects to corporate strategy
� Incorporation of the core values of the organization� Resource management and development
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Program Tracking Design
� Cultural Metrics� Cumulative certifications showing organic growth� Black Belt and Green Belt project completion time � Communication and social impact� Follow-on projects (vs. one project and out)� Mentor participation and growth� Cross-functional projects
� Cultural / Organizational Metrics� Does the organization have enough Black Belts?� Is the organization growing enough belts organically? � Are we ‘retiring’ misaligned or unsuccessful projects rapidly� Is our dashboard helping identify and manage ‘risk’?
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“…Organizational Cultures are worth far more to many companies than their tangible assets. Unlike financial and physical ones,intangible assets are hard for competitors to imitate, which makes
them a powerful source of sustainable competitive advantage.”
Robert S. Kaplan and David P. Norton, “Measuring the Strategic Readiness of Intangible Assets”
Harvard Business Review, February 2004
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4 More Months of Planning
� Executive Training Results
� Setting up Black Belt Training
� Identifying Participants
� Goal setting, Mentoring, Training, Projects, …
� And finally, a formal kickoff !
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The Official Kickoff !
“Six Sigma is one of our corporate goals for 2003. It’s an opportunity to further contribute to the success of our business and the improvement of our bottom line. We are institutionalizing Six Sigma throughout EMC”.
-Joe Tucci, March 2003
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� Resources
� Do employees feel empowered?
� Do we have the “right” people trained and engaged?
� Are the top performers volunteering to lead key projects?
� Are successful GB and BB seeing new career opportunities?
� Are we allowing our top performers to participate?
� Have we made it uncomfortable when people don’t participate?
� Financial
� Do controllers validate, approve and leverage project benefits?
� Are successful projects impacting the organizational P&L?
� Is organization ‘pulling in’ new projects?”
� Communication
� Are Executives showing vocal support with active participation?
� Are individuals and teams being recognized?
� Are mentors seeking more opportunities?
� Are belts volunteering to mentor?
Program Tracking Design
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LeanSigma
Understanding All Aspects of the Implementation
Business Operations
People
� Value Stream Management
� Productivity Improvement
� Cost Reduction
� Revenue Creation
� Career Paths to Develop Future Leaders
� Data Driven Decision Making
� Organizational Needs
� Individual Needs
� Customers Needs
� Corporate Needs
� Revenue Creation
Business Strategy
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Key Takeaways and Lessons Learned
1. Customize to fit the culture.
2. Tops Down and Bottoms Up to be most effective.
3. Prove your results. Finance is a Core Member of team.
4. Cross-Functional Projects
5. Over communicate the wins and the mission.
6. A strong infrastructure is a must.
7. Self Inspect – What can we do better?
8. There are more than just financial benefits…measure them.
“Lean Six Sigma is the way we work at EMC. It is how we are delivering on our
commitment to create the best possible customer experience in the entire IT industry.”
--Frank Hauck, EVP Global Marketing and Customer Quality and TCE Lead
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Thank You and Questions…
