strategic 6 sigma
DESCRIPTION
sigma para la industriaTRANSCRIPT
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2002 by Business Strategies, All rights reserved.
Strategic Six Sigma
Business Improvement using Strategic Six Sigma
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Strategic Six Sigma - 22002 by Business Strategies, All rights reserved. [email protected]
Goals
At the end of this presentation the audience should be able to:
Explain how Six Sigma can be used to improve business results
Explain how Strategic Six Sigma can help implement a strategic or operational plan
Explain how Strategic Six Sigma incorporates other management initiatives
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Strategic Six Sigma - 32002 by Business Strategies, All rights reserved. [email protected]
Six Sigma
Six Sigma is a methodology for pursuing continuous improvement in customer satisfaction and profit
Six Sigma is about putting Results on Financial Statements
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Strategic Six Sigma - 42002 by Business Strategies, All rights reserved. [email protected]
Six Sigma
All work we perform is a process The important outputs are called Key Process Output Variables or
KPOVs The important inputs are called Key Process Input Variables or
KPIVs Six Sigma is a Process for identifying factors, KPIVs, that drive
KPOVs
ProcessInput Output
Customer
KPIV KPOV CTQ
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Strategic Six Sigma - 52002 by Business Strategies, All rights reserved. [email protected]
Six Sigma
DefineProject
Control
Measure
PassiveAnalysis
ProactiveTesting
KPOVs are knownOrganizational Wisdom connects KPIVs to KPOVs
Define KPOV
Collect observational data to connect KPIVs to KPOVsCause and Effect not established
Establish Cause and Effect relationship between KPIVs and KPOVsLearn to control KPOVs with KPIVs
KPIVs are understood Control KPIVs to give desired values for KPOVs
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Strategic Six Sigma - 62002 by Business Strategies, All rights reserved. [email protected]
Design for Six Sigma
Design for Six Sigma (DFSS) New Product/Process Development
Deliver a product that is right the first time
Business CaseIdeas
Customer
Product/ Process
Development
Mfg. Scale-Up Production
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Strategic Six Sigma - 82002 by Business Strategies, All rights reserved. [email protected]
Six SigmaE
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Select Champions
and BB's
Define Operational
Goals
Establish accountability
Select key projects with Leadership
buy-in
Define a project selection process
Identify Team
Members
Facilitate Culture Change
Support BB and Team
Define Communication
Plan
Share BestPractices
Define
Motivate and Sustain Change
Measure Analyze Report
Allocate Resources
Develop Incentive Plans
Improve Control
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Strategic Six Sigma - 92002 by Business Strategies, All rights reserved. [email protected]
Six Sigma
High Level Business Metrics Capital Utilization Growth Revenue Profit Return on Assets
Operational Metrics
High Level Business Metrics
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Strategic Six Sigma - 102002 by Business Strategies, All rights reserved. [email protected]
Six Sigma
Operational Metrics Quote Time Quoting Margin Close Rate Defect Rates Cycle Time Waste Days Sales Outstanding On-Time Delivery Product Dimensional Inventory Head Count Etc.
Operational Metrics
High Level Business Metrics
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Strategic Six Sigma - 112002 by Business Strategies, All rights reserved. [email protected]
Strategic Six Sigma
The use of Business, Lean, TOC, Six Sigma and DFSS tools to develop and implement a strategic plan
to achieve the goals of the company
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Strategic Six Sigma - 122002 by Business Strategies, All rights reserved. [email protected]
Strategic Six Sigma
Operational MetricProduct Yield Loss
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Strategic Six Sigma - 132002 by Business Strategies, All rights reserved. [email protected]
Strategic Six Sigma
High Level Business MetricEconomic Profit
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Strategic Six Sigma - 152002 by Business Strategies, All rights reserved. [email protected]
Strategic Six Sigma
Executive Planning and Process Identification
Management and BB Prj Selection
Business Goals Strategies High Potential Areas Projects
Inc. Qtrly Profits 15%
Reduce Costs
50%
New Markets
20%
Inc Revenue Streams from
Existing Customers
30%
Executives set business goals and identify appropriate strategy
High level managers can overlap with Executives when identifying strategies
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Strategic Six Sigma - 162002 by Business Strategies, All rights reserved. [email protected]
Strategic Six Sigma
Use Corporate Supply Chain map to identify: High Potential areas for strategies
Lean Enterprise can be used as a high potential way to satisfy strategies; reduce cost, retain and gain new customers
Product data
package
Order entry & demand management
Acceptable data packagereceivedSpecified matlreceived on-time & completeProduct shippedon-time &complete
Supplier
Mfg. Plant
Freight CarrierDistributor
orCustomer
Productdeliveredon-time &complete
Lab
Correct:-product (perf.)-quality (consist.)-quantity-on-time service-pricing
(RMs & Compts)-product (perf.)-quality (consist.)-quantity-on-time service-pricing
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Strategic Six Sigma - 172002 by Business Strategies, All rights reserved. [email protected]
SupplierA wks
PlantB wks
PlantC1 wks
PlantC2 wks
PlantC3 wks
WarehouseD2 wks
WarehouseD3 wks
WarehouseD4 wks
WarehouseD5 wks
WarehouseD1 wks Customer
or Market
Customer or Market
Customer or Market
Customer or Market
Time from Raw Material to Customer: A + B + C2 + C3 + D5
Time from Raw Material to Customer
Strategic Six Sigma
More detailed Supply Chain map to identify logistical issues between plants and customers
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Strategic Six Sigma - 182002 by Business Strategies, All rights reserved. [email protected]
Bottom Up Operational ForecastingB u s in e s s G o a ls S t ra t e g ie s H ig h P o t e n t ia l A re a s P ro je c t s
In c . Q t r ly P ro fi t s 1 5 %
R e d u c e C o s t s
5 0 %C u s t o m e r
L o s s e s
W a re h o u s e In ve n t o ry
R e d u c e P la n t O p e ra t in g E x p e n s e
C re d i t s : W ro n g P r ic in g / P ro d u c t $ 1 3 0 K
L a t e D e l ive r ie s $ 7 2 k
A / R : D S O $ 3 2 0 K
R e d u c e R a w M a t e r ia l C o s t
C o n s o l id a t e W a re h o u s e s $ 5 5 0 K
S m o o t h C u s t o m e r
O rd e rs$ 1 7 5 K
R e d u c e L a b o r C o s t $ 4 0 0 K
R e d u c e E n e rg y E x p e n s e $ 1 2 0 K
R e -a s s e s s S p e c s $ 6 1 0 K
S e c o n d S o u rc e $ 1 8 0 K
C u s t o m e r C o m p la in t s :
Q u a l i t y
W a rra n t y $ 1 1 0 K
R e d u c e Y ie ld L o s s $ 2 0 0 KManagers and BBs
identify and select projects
Executives can overlap with managers and BBs when selecting HP areas
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Strategic Six Sigma - 192002 by Business Strategies, All rights reserved. [email protected]
Bottom Up Operational Forecasting
New Markets
20%
Inc Revenue Streams from
Existing Customers
30%
Reduce Raw Material Cost
Smooth Customer
Orders$175 K
Re-assess Specs $610 K
Second Source $180 K
Marketing
New Products
New Solutions
Merger
Distribution
Develop New Capabilities or
Products
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Strategic Six Sigma - 202002 by Business Strategies, All rights reserved. [email protected]
Strategic Six Sigma
Strategic Six Sigma develops a business plan, executes and provides feedback to the planning process
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Define Measure Analyze Improve Control
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Return Results to Strategic Planning
Define Measure Analyze Design Verify
Work using DMAIC philosophy
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Strategic Six Sigma - 212002 by Business Strategies, All rights reserved. [email protected]
Summary
Six Sigma focuses on putting results on financial statements Metrics customer and internal Infrastructure
Strategic Six Sigma can help implement a strategic or operational plan Control Charts for Business metrics BUOF
Strategic Six Sigma incorporates other management initiatives BUOF Use Six Sigma methods to implement