reviewing, measuring, & maintaining the effectiveness of your six sigma deployment

1Sun Chemical Confidential

Reviewing,Measuring, &Maintaining The Effectiveness of Your Six SigmaDeployment

Dr. Skip YocumDir. Business Process

Excellence

WCBF ConferenceFebruary 16-17, 2005


SPACER• Safety- FMEA & Preventive Maintenance can stop accidents before they

happen. • Purpose- Share Sun Chemical’s Six Sigma Deployment, metrics and

tools used to reenergize.

• Agenda- – Sun Chemical, Who We Are– Six Sigma Deployment – Metrics, Tools and Reenergizing Six Sigma– Success and What Would Do Differently

• Code of Conduct- Presentation with Open Dialog. Ask Questions, but one at a time.

• Expectations- Leave room with understanding of Sun’s Deployment and Helpful Insight to Improve Your Deployment. Learn from other deployments.

• Roles-– Presenter – Skip Yocum Time Keeper – WCBF representative– Facilitator – WCBF representative Note Taker -- Participants


Who is Sun Chemical?

• A leading provider of materials to packaging, publication, coatings, plastics, cosmetics, and other industrial markets

• Is the world's largest producer of printing inks and performance pigments

• Annual sales of more than $3 billion.

• 12,500 employees

• Over 300 sites around the world via Sun Chemical/DIC Group

• Products sold in almost every country

• Many joint ventures, with the largest being its $1.5 billion Kodak Polychrome Graphics joint venture with Eastman Kodak


Markets Served

CoatingsEnergy curable (UV&EB)Flexo & gravure packaging Water, and solvent inks

Inkjet & screenSheetfed

Coldset offsetComputer to plate (KPG)Conventional plates (KPG)Energy curable (UV&EB)FlexographicLetterpressPrepress equipment (KPG)Publication gravureSheetfed offsetWeb offset heatset

• Corrugated containers• Flexible packaging• Folding carton• Label and tag• Multiwall bag• Towel & tissue

• Advertising inserts• Books• Catalogs• Directories• Magazines• Newspapers

Product Markets: Our Products:

More,…

Packaging

Publication


Décor inksEnergy curable (UV&EB)Inkjet & tonersLetterpressSheetfedScreen inks

Analytical servicesColor measurement devicesColor managementEnvironmental consultingFlexographic platesGraphic design/ImagesettingIn-Plant facilitiesPressroom consumablesPrepress services Workflow management

• Automotive trim• Brochures• CDs/DVDs• Displays• Glass decoration• Signage

• Brand protection• Color standardization • Film processing• Global color standards• Pressroom maintenance• Regulatory compliance

More,…

Markets Served

Product Markets: Our Products:Commercial & Industrial

Supplies & Services


Dispersions

Inkjet

Toner

Pigments

• Digital printing for home and office

• Direct marketing

• Home photography

• Personalization of consumer goods

Markets Served

Product Markets: Our Products:

More,…

Digital


Aqueous dispersionsDry colorFlush colorPredisol dispersionsPresscake

• Automotive finishes

• Carpet & fibers

• Coatings

Architectural

Industrial

• Color for consumer & industrial uses

• Cosmetics

• Inks

• Plastics Automotive Wire & cable Packaging Industrial

Markets ServedProduct Markets: Our Products:Pigments & Dispersions


SWALE


Six Sigma Deployment Challenges

• Highly Decentralized Organization• Corporate Initiative History of “Program of the Month”• Successful Company with Great Firefighters• Fact Adverse and Command & Control Culture• 2002 Budget already Approved Without Six Sigma• Introduce Six Sigma in Local Languages

English French Spanish German

Italian Danish Swedish Finnish

Dutch Zulu Xhosa Sotho

RussianCzech


Six Sigma Breakthrough Strategy

• Eight Actions Required to Sustain Six Sigma– Senior management commitment and support– Leadership training and alignment with Business Strategy and

their goals– Black Belts dedicated full time– Renewal every six to nine months– Strive for Entitlement and Set Stretch Goals– Share Best Practices– Benchmark the Best– Finance and Business Leaders report savings

The Process Must be Owned to be Sustained


Six Sigma at Sun Chemical• 2000 Pilot in North American Inks• 2001 Six Sigma 1 of 4 Key Initiatives to take Sun

from Good to GREAT• 2002 Deploy Six Sigma

– DMAIC & Initiate DfSS

• 2003 Own Six Sigma– Visual Workplace & CIR

• 2004 Integrated– Fitness for Use

• 2005 “The Way We Work and Win”– Lean Sigma

Faith is the substance of things hoped for,

evidence of things not seen


Sun Chemical’s 4 Key Initiatives are Our Road Map to Winning

Six Sigma

Safety Customer Value System

Productivity

People Development

Six Sigma Is Driving the Culture Change


Transformation to Six Sigma Culture 2002 ------------ 2003 ---------- 2004 ---------------- 2005 End Silos Transformation New “One Sun”

Leadership byWalking Around

Acknowledge the Value of the Old while Reinforcing the Need for Change

“Elevator Speech”Working together using Six Sigma Roadmap, Want your involvement

Convert Constructive Criticism into Actioni.e., “Make it Better”Established RolesDon’t Accept Whining

Champions Must Lead Start Forming Teams Start New Role Definition

Deploy Strategic Communications Plan, Reach All Employees

CommunicateCommunicateCommunicate

Update & Deploy Strategic

Communications Plan

Six Sigma integrated into 2004 AOP & STIP Objectives

Demonstrate Going BackIs Not an OptionSix Sigma is Here to Stay

Executive Orientation

Champion Training

Belt Training


CorporateSkipYocum

SIE

Coates

Six Sigma Distributed Approach-2002

NAI

US Ink

K&MHR

Corporate ExecutiveDavid Hill

Divisional Coordinators to Drive Local Ownership

Pigments


Executive Orientation

Six Sigma Finance

Champions

Productivity & Six Sigma Foundation

Six Sigma Team Leadership Skills

Six Sigma 2002 Deployment

Roadmap, Tools & Skills to Take Us to GREAT!

Six Sigma and DfSS

White Belt TrainingDfSSGreen & Black

Belt Training


Six Sigma

Tools

50%

We

realized the

need to prepare

Belts……..

How to

Inspire, Motivate

And Lead

Teams

50%

Six Sigma Team Leadership & Facilitation Gives the Skills to Drive Change


2002 Six Sigma In Review

• Form• Storm• Norm• Perform

Six Sigma Foundation In Place

•264 Executive One Day

•48 Six Sigma Finance

•175 Champions

•35 Blackbelts

•100 Greenbelts

•26 DfSS Belts

•1500 + Employees Receive 4 Hour Intro

•$avings to Bottom Line

•$avings Identified for future projects

Metrics focused on Involvement and Establishing Financials


Owning Six Sigma in 2003Actions• Deliver Targeted Savings• Identify/Train Master Blackbelts• Train 75 Blackbelts and 200 Greenbelts, DfSS in Europe• Reenergize with Visual Workplace & CIR Deployment• Develop Metric Maps for All Major Processes• Every Employee Minimum 4 hours Six Sigma Training

Results• Delivered 65% of Targeted Savings• Common Language and Foundation for Productivity• 9 Master Black Belts, 60 Black Belts, 289 Green Belts and 34 DfSS

Black Belts• Deployed Visual Workplace & CIRs• Continued Communications and Celebrations

Together, We Will Live Six Sigma At All Levels

Metrics transitioned to financial and execution


Six Sigma 101

Y = $ Million Benefits = f ( x , ,..., xk )

x = Number of Belts

x2 = Number of Projects

x3 = $ savings/project

x4 = % Belt is Committed to Projects

x5 = Time to complete project

Now Working on the x’s to Improve Execution


“As Is” Process MapProcess Map-Proc Selection.igx

CLT/SBU Leaders

Corp. Coordinator

(Skip Yocum)

Div. Coordinator

Champion

Belt

Finance

Set Training Dates

Send Request to

Coordinator for

belts/projects

Communicated atCoordinator's meetings

and email reminders

Send request for

belts/projects to

SBU's - Middle

Management

Done via email, phone

and other methods....

C&E Matrix for belt selection is

available, but

rarely used at

GB Level.

Belt names are

submitted

Belt

names/projects are

submitted

Belt names are submitted

Belt names/projects are

submitted

Review potential

belt candidates and

Select final

candidates

Project idea is

submitted

Belt/Project idea is

submitted

Belts/Projects are put together

Writes charterfor belt/project

Project ideas are usually submitted informally....

Announcement

sent out for training

Final selection submitted to

Skipper

Belts go to training

Write charter

Tools Provided:

1. Training program including charter

writing

2. Div. Coor assistance

3. Belt assistance

Belts sent home to

work on projects

Belt and Champion

meet to discuss

project

Charter reviewed

and editted

Finalize team

membersHold first meeting

Start Measure

phase

Discuss realistic

schedule

Receive revised charter

Receive revised

charter

Requested by

2nd week of belt

training

Formal

Presentation at 2nd

week of traning for

update

Participate in

formal

presentations

Informally develop

project metrics

50% Charter receivedwithout metrics (baselines)

or initial estimate of financial

savings

Review

Metric/Financ

ials

50% of Chartersnot received before

trainingReview and Verify

with Champion

Send request for

information

Yes

50% Charter received

without metrics (baselines)

or initial estimate of financial savings

Send request for

information

Review Potential

Savings and

Validate

10% Charters submitted

for financial validation

Resolve between

Champion/Coordinator and

Finance

Project "Killed"

Verify/create baseline metric

calculations

No

Receive Project

Charters

NoYes

No

Yes

Project Identification Process Map


Visual Workplace

• Drive Awareness on 4-Key Initiatives to all employees

• Implemented at 20 Sites in NAI, SIE, SCLA and Colors

• Phase 2, All Sites and Into the Workplace


Continuous Improvement Reviews

•A process that helps teams improve

their performance by learning from

their own work

•Developed by the U.S. Military and adapted for use by businesses, government agencies, and non-profit organizations.


Three Key Questions1. What Happened?

a. What was supposed to happen?b. What actually did happen?

2. Why Did It Happen?a. What are the root causes for these

results?3. What Should We Do About It?

a. What actions should we take to sustain what’s working and fix what isn’t?

b. What did we learn?


Implementing C.I.R.• Sun Chemical University offered quarterly

training.

• All Safety personnel trained and key sites.

• Video and Training Guide in English.

• CIR training reported monthly as key indicator on Six Sigma metrics.

• Senior Leadership team used after key meetings for improvement

Coordinated with Six Sigma, Not Separate Deployment


Building on Our SuccessGoals for ‘04• Deliver Targeted Benefits• All Master Black Belts and Black Belts Certified• Six Sigma Owned by Business Unit Leader/MBB• Transition from Tops Down to Bottoms Up• Deploy Product Quality and Fitness for Use• Integrate Lean Tools into Six Sigma Results for ’04• Achieved Planned Benefits• Master Black Belts & 85% Black Belts Certified• Six Sigma Goals built into Business Unit Plan• MBBs Aligned with Business Unit Leaders• Deployed Product Quality & Fitness for Use• Lean Sigma Piloted and Rollout in 2005

Maximizing our Six Sigma Investment


Fitness for Use Roadmap

• Understand Customer’s Requirements• Determine Fitness for Use• Comparative Analysis• COPQ Measured• Make Improvements• Coordination with Six Sigma Projects• Lead Supplier Improvement

A Process for Understanding &

Meeting Customer Requirements


1000 + Customer Voices


Lean Six Sigma Means Continuous Improvement...

Relentless, Never-Ending, Reduction of Variations, and Elimination of Waste, with:

Total Customer Satisfaction Total Commitment to Quality, and Total Employee Involvement

Speed and Execution


Six Sigma is to reduce variations

Lean is to eliminate wastes

Six Sigma is to reduce variations

Lean is to eliminate wastes

Variations Generate Wastes

Design & Product VariationsProcess VariationsOperator VariationsMachine Variations

Supplier Variations

Demand Variations

Schedule VariationsGENERATE

The 7 Wastes

Defects

Over production

Transportation

Waiting

Inventory

Motion

Processing excessively

6 & Lean = accelerated savings

6 & Lean = accelerated savings


Flow5SBalanced WorkPull / KanbanSetup ReductionVisual Management

DefectsVariation ReductionMeasurement SystemsExperiments / DOEControl Plans / SPCProcess Capability

Lean Six SigmaTeams / TrainingProblem SolvingProcess MappingStandard WorkQuality at SourceMistake Proofing

Shared Foundation

Shared Tools & Methods Provide Foundation


Synergy of 2 Continuous Improvement Methodologies

• Lean Tools Incorporated into Belt Training• All Black Belts Trained on Lean• Lean Training as Centerpiece in Champion

Refresher• Green Belts selected to for one week Lean training• Lean Projects incorporated into Management

Deliverables• Value Stream all large Sites in 2005

Must be seen as One


What I Would Do Different

• Have Champions Accountable for Results• Have Champions Engaged with Project Reviews• Increase Senior Management Reviews• HR Establish Rewards/Recognition Before Deployment• HR Involved in Selecting Blackbelts• Implement Project Tracking System• Have SBTI Leadership Follow-up with Sun Senior

Management• Hire MBBs at Deployment Start to Mentor Belts• No Part Time Blackbelts


What Sun Did Well• Established Leadership Steering Committee• Cross Divisional Belts to Break Down Barriers• Six Sigma Team Leadership & Facilitation• Global “Best Practice” Sharing with Workshops

– Waste Minimization

– Inventory Management

– Lean Tools

– Strategic Mapping

• Introduced Six Sigma in Local Languages• Greenbelt Training in Local Languages• Newsletter Translated into Major Languages• Global Leadership Six Sigma Showcase• Americas Blackbelt Conference• Product Quality & Fitness for Use

Successful Corporate Initiative


What It Takes to Succeed

• Total commitment and support from the top of the organization

• Everyone on the same team• Assignment of the best people• Well chosen projects• Renewal every 6 to 9 months• The “Will to Win”• Recognition and celebration of success

Sun has the People, the Market Position and the Drive to be the Leader


$0

$10

$20

$30

$40

$50

$60

$70

2002 2003 2004 2005 2006

Six Sigma Roadmap & Deliverables

DEPLOYED

OWN

WAY WE WORK

INTEGRATED

TRANSFORMED

LEAN SIGMA

DfSSVisual WorkplaceCIRs

Product Quality & Fitness for Use

$

Ben

efit

s

Maximizing our Six Sigma Investment


17

53

30

(155)4

00

(70)

35

95 (60)

137 (42)

10

03

38

(289)4

83

(94)

25

70

(45)

95

(25

)0

100

200

300

400

500

Champions Blackbelts Greenbelts Workforce %

2002 2003 2004

Training Summary

8 Master Blackbelts


Sun Chemical Outperformed GE!

Passion To Be The Best

0.0

0.5

1.0

1.5

2.0

Six

Sig

ma

Mar

gin

Po

ints

GE Sun

1 2 3

Year


Thank You & Questions?


A CIR Meeting was called to discuss Low Feed Water Shutdown Present: Dennis Grunenwald, Don Geist, and Charles Tincher

Reviewed “SPACER” What happened?The boilers went down due to low feed water.

Why did it happen?The reason is that the RO filters had a high DP reducing flow and thus the shutdown on low feed water to the boilers. After investigation it was found that before the filters reach 15-PSI DP the RO system filters need changed to prevent the low flow of feed water.

What should we do about it?Add in the PM program the activity of inspecting the DP across the filters and replacement intervals for filters (DWG 5/1). Replace the two 0 to 100 PSI gauges with a DP transmitter or DP gauge (DKG 5/1). Investigate the possibility of automatically switching to soft water if the filters plug (CHT 5/1). Major finds:RO system has two pressure gauges with poor resolution No PM for the filters in the maintenance management system.

MMEMORANDUMAAugust 19, 2003TTo: Allen Shearer, Craig Stucky, and Andy Nuttal From: Charles H. Tincher Subject: CIR on Low Feed Water Shutdown

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