realizing the cultural change for truly integrated deployment

Hung Le, Ph.D.Master Black BeltNorthrop Grumman Corporation

Confronting the Reality of Lean Six Sigma: Realizing the Cultural Change for Truly Integrated Deployment

Lean Six Sigma ConferenceDallas Dec. 1-3, 2004

Confronting the Reality of Lean Six Sigma: Realizing the Cultural Change for Truly Integrated Deployment

Lean Six Sigma ConferenceDallas Dec. 1-3, 2004

Copyright 2004 Northrop Grumman Corporation

2

Agenda

• Our path to Enterprise Excellence– An integrated approach to process improvement

– Six Sigma implementation model

– Continuing to reinforce our Six Sigma culture, sustaining the gain and building momentum

• Integration of Lean and Six Sigma– Understanding the impact of Lean Six Sigma

– Embedding Lean Six Sigma within the organization and strategic focus of the business for a blended approach

– Managing the cultural changes associated with Lean Six Sigma

• Institutionalization of Process Improvements


3

Business MeasuresBusiness Measures

Voice of the Customer

Voice of the Customer

Change Management

Change Management

Process Management

Process Management

DMAICDFSS

DMAICDFSS

Methods & Tools

Methods & Tools

Enterprise ExcellenceEnterprise Excellence

ISO 9001AS9100

ISO 9001AS9100 CMMICMMI

Integrated Approach to Process Improvement

Six Sigma – framework for ensuring process improvements support corporate goals

ISO 9001 – quality management discipline for project and functional areasAS9100 – quality system requirements for suppliers to the aerospace industryCMMI – use of industry best practices in software/systems engineering

Six SigmaSix Sigma


4

Our Process Improvement Implementation

We use projects to drive process and product

improvement (strategic and tactical)

Engaged with External Customers

•Visibility • Participation

Linked with Business Planning

And Oversight •Business planning•Project selection

Enabled byInfrastructure • Training• Tools• Awareness• Database

SPM

Level 2 Self Assessment & Monitoring

Quality Goals

Performance

Objectives

Performance

Metrics

Relative Weight

Benchmark/Baseline

1

2

3

4

5

6

7

8

9

10

Quality Goals1 2 3 4 5 6 7 8 9 10

Sum=100

Inte

grat

ed

Pr o

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D

eve

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Em

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ISO

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Qu

ality

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ysis

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eet

ings

Per

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Per

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duct

ion

Com

plet

ed

Stu

dies

20 20 10 25 20 5

20 50% 100% 20% 10% 3

EXAMPLE OF TOOL USAGELevel 2 Self Assessment & Monitoring

6

Current Performance - Baseline

10

8

6

4

2

0

(circle current actual performance)

Potential Totals

1000_____ Goal Met

200____ No Gain

0_____ Worse

Improvement

Rating x weight

Previous Total

Current Total

Improvement Rating(0-10)

18 40% 100% 20% 10 2

15 35 80 17 8 1

12 30 60 14 6 0

9 25 40 11 4 0

20 20 8 2 0

3 15 0 5 1 0

80 120 80 150 160 10

480

600

EXAMPLE OF TOOL USAGE

Quantitative Process

Capability Measuremen

t and Assessment

Report

Integrated with Overall Quality Program

•Integrated Training, Awareness, & Policies

•Integrated CMMI & Six Sigma projects

•Integrated tracking and reporting via DB, PRA, etc.

Tied to Employee Performance

•Goals, Special Awards•Job and career paths


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Continue to Reinforce Our Six Sigma Culture

• Clarity: Clear objectives with measurable results, precise process and role definitions

• Communication: Constant, effective communication

• Leverage: Mobilize key stakeholders at all levels of the organization

– Leadership engagement and support– Stakeholder enrollment (internal, external)

• Relevance: New processes have clear, ‘transparent’ benefits to the company and to individuals in their daily jobs

• Ownership: Align goals of business units and functional areas to corporate vision (Strategic Decomposition)

– Process accountability at the executive level– Responsibility and ownership of change at working level

• “Scoreboard” – Visible measures, monitoring and feedback


6

Competitive DifferentiationCompetitive Differentiation

ValueValue

Quality

& P

roce

ss Im

prove

men

t Tools

Set

Process Process Improvement / Improvement / Performance Performance ExcellenceExcellence

LeanSix Sigma

CMMI

ISO

Alignment to Strategic

Enterprise Enterprise ExcellenceExcellence

Aligning With Our Corporate Goal

Our objective is to incorporate Lean quality tools into our Six Sigma culture to speed up our effort toward

achieving Enterprise Excellence

…

Our Five Key Behaviors:• Live the Company

Values• Focus on Operating

Excellence• Act with Speed• Communicate Openly• Collaborate Across the

Company

Benchmarking


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Focus on collaboration — within the organization and between the organization and business partners

Leverage experience and creatively tailor approaches

Produce results and new capabilities

We must manage change in a way which produces results and new capabilities. This is achieved by facilitating critical skills needed to sustain change and manage challenges which will inevitably occur . . .

Sustaining Change and Building Momentum


8

Challenges in Integrating Lean and Six Sigma

• May be viewed as another quality initiative

• Very different mindset in terms of approach– Focus of quality improvement– Analysis rigor– Bias for analysis vs. action …

• “Loyalty” to the methodology – Program vs. Framework/Tool Set

• A flexible framework to address a broad range of problems

• Need a cadre of strong Black Belts to guide teams

• Managing the deployment of an integrated framework


9

• Characterize process improvement problem types

• Define approaches best suited for different classes of problems

• Incorporate Lean tools into our problem solving approaches

Flexible Framework for Improvements

Customer PainsCustomer Pains

Customer RequirementsCustomer Requirements

Process AnalysisProcess Analysis

Performance Benchmarks andPerformance Benchmarks andBest PracticesBest Practices

Quick Hits

Strategic/Long-Term Improvements

Process Improvements

ProcessImprovement

Portfolio

Customer PainsCustomer Pains

Customer RequirementsCustomer Requirements

Process AnalysisProcess Analysis

Performance Benchmarks andPerformance Benchmarks andBest PracticesBest Practices

Quick Hits

Strategic/Long-Term Improvements

Process Improvements

ProcessImprovement

Portfolio

APPROACH

Lean

Rapid Improvement

Lean Six Sigma

DMAIC

DFSS

ClearExpectedOutputs

IMPROVEMENT OPPORTUNITIES


10

Embedding Lean in Our Culture

Training Environment• Curriculum revision• Train-the-Trainer• Workshops

Governance Model /

Infrastructure• Selecting Projects• Trad. vs. Alt. Training• Reviewing Project Status• Business Cases• Completing Projects

The Lifecycle of a Typical Project

Schedule Project for Training

Industry Best Practice: train people with projects

Identify top priority projects, based on gap

Assign Green Belts & Black Belt to Project

Scope project / financial benefit

Complete Project

Refine Business Case

Review Projects

Identify Key Opportunities– Near

and Longer Term

Schedule Project for Training

Industry Best Practice: train people with projects

Identify top priority projects, based on gap

Assign Green Belts & Black Belt to Project

Scope project / financial benefit

Complete Project

Refine Business Case

Review Projects

Identify Key Opportunities– Near

and Longer Term

Stakeholders Commitment• Stakeholders impacted• Impacts• Communication Plan


11

Tools & Infrastructure to Develop and Reinforce a Culture for Enterprise Excellence Throughout Our Geographically Dispersed Organization

Supporting Tools and Infrastructure


12

Project Plans

CMMI

Project Results

OrganizationalTraining & Tools

Industry/Government Standards

ISO

Customer

Specific

OrganizationalPolicies & Processes

Process Improvement

Process Improvement

Communications Sharing best-practices Measurement & dashboards

Communications Sharing best-practices Measurement & dashboards

Metrics Database

Organizational PerformanceOrganizational Performance

Project Performance

Project Performance

Project Schedules & Budgets

Institutionalizing Our Improvements


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Summary

• Focus on Enterprise Excellence … It is a journey

• Use Lean Six Sigma tools to drive change deep into the organization

• Black Belt development critical in providing guidance to teams on problem solving approaches

• Executive leadership and support required to sustain change and build momentum

• Framework must be flexible and adaptable to address a broad range of problems

• Success requires effective integration of all quality initiatives and sharing of infrastructure

realizing the cultural change for truly integrated deployment

Documents

gain 0 worse

enterprise

quality goals

improvement

broad range

previous total

sustain change

current total