the top 10 challenges facing the deployment of six sigma initiatives - successfully implementing six...
DESCRIPTION
TRANSCRIPT
The Top 10 Challenges Facing the Deployment of
Six Sigma Initiatives Successfully Implementing Six Sigma in Chemicals and
Pharmaceuticals
The Top 10 Challenges Facing the Deployment of
Six Sigma Initiatives Successfully Implementing Six Sigma in Chemicals and
Pharmaceuticals
Dr. Fadel Hamed
ASQ Certified SSBB, CQE
Project Manager, Amgen
Adjunct Professor, Manufacturing Systems and
Engineering Management, California State University
Northridge
Presentation Elements:
1. The Shortest Overview of Six Sigma2. The top 10 Challenges
Presentation Elements:
1. The Shortest Overview of Six Sigma2. The top 10 Challenges
For the 1000th Time, What is Six Sigma Again???For the 1000th Time, What is Six Sigma Again???
Eliminate Defects
Reduce Variation
Save Money
Management Philosophy
3.4 Defects per 3.4 Defects per million opportunitymillion opportunity
Project ManagementProject Management
DMAICDMAIC
Data DrivenData DrivenProblem SolvingProblem Solving
Business Process Focus
How do we start with Six Sigma?How do we start with Six Sigma?
We start by shifting our thinking to Process!We start by shifting our thinking to Process!
Vision Vision StrategyStrategy
Goal SettingGoal Setting
MetricsMetrics
Product FocusProduct FocusProcess FocusProcess Focus
Customer RequirementsCustomer Requirements
“We are going to shift the paradigm from fixing products to fixing and developing processes. So that they produce nothing but perfection or close to it!”
Jack Welch
“We are going to shift the paradigm from fixing products to fixing and developing processes. So that they produce nothing but perfection or close to it!”
Jack Welch
An Early Attempt at using Six Sigma without Process thinking… An Early Attempt at using Six Sigma without Process thinking…
Very Successful Case Studies*
• Committed leadership
• Use of top talent
• Supporting infrastructure• Formal project selection process
• Formal project review process
• Dedicated resources
• Financial system integration
Less Successful Case Studies*
• Supportive leadership
• Use of whoever was available
• No Supporting infrastructure• No formal project selection process
• No formal project review process
• Part time resources
• Not integrated with financial system
Experts’ Opinion on Successful vs. Unsuccessful Six Sigma DeploymentExperts’ Opinion on Successful vs. Unsuccessful Six Sigma Deployment
* Taken from Leading Six Sigma: Snee and Hoerl
Reasons for not being successful with Six Sigma have little to do with DMAIC…
… It Has Everything to do with Leadership & Business Process
Management
Fadel’s Opinion on Successful vs. Unsuccessful Six Sigma DeploymentFadel’s Opinion on Successful vs. Unsuccessful Six Sigma Deployment
Are There Only 10 Challenges Facing the Deployment of Six Sigma Initiatives?Are There Only 10 Challenges Facing the Deployment of Six Sigma Initiatives?
Obviously Not…
The following challenges are based on Fadel’s personal experience with Six Sigma.
Obviously Not…
The following challenges are based on Fadel’s personal experience with Six Sigma.
Top 10 reasons why Six Sigma Initiatives FailTop 10 reasons why Six Sigma Initiatives Fail
1. Selected Six Sigma projects are not connected to the
corporation’s goals
2. The corporation is deploying Six Sigma for the wrong
reasons
3. Six Sigma project goals are not aligned with Champion’s
Goals
4. A bottom-up rather than top-down project selection
methodology
5. No clear financial benefits
6. The corporation does not have clear processes to
support customers
7. Poor or wrong Metrics
8. Projects has ineffective charter
9. Solution is obvious
10. Focusing on output measures
Str
ateg
icT
acti
cal
Reason # 1 Selected Six Sigma project are not connected to the corporation’s goals
Reason # 1 Selected Six Sigma project are not connected to the corporation’s goals
Six Sigma Projects and Corporation’s Goals Six Sigma Projects and Corporation’s Goals
Identify, Prioritize & Charter New Improvement Projects
Collect Data & Evaluate Performance. Identify Process
Constraints
ID Effectiveness and Efficiency Metrics for the Process Outputs.
Create Dashboard
ID Key Core, Sub & Enabling Process & Create High Level
Maps
Corporation’s High Level Strategic Goals
Identify and map the business processes that customers care about, define metrics, goals,
identify opportunity and improve!
Identify and map the business processes that customers care about, define metrics, goals,
identify opportunity and improve!
Reason # 2 The corporation is deploying Six Sigma for the wrong reasons
Reason # 2 The corporation is deploying Six Sigma for the wrong reasons
Wrong Reasons to Deploy Six SigmaWrong Reasons to Deploy Six Sigma
• Six sigma methodology is being used to save a company in strategic distress
• The company is in financial trouble • Six sigma is being used because company’s
competitors are deploying six sigma• Executive leadership wishes to impress
shareholders with six sigma language• Why not us…
• Six sigma methodology is being used to save a company in strategic distress
• The company is in financial trouble • Six sigma is being used because company’s
competitors are deploying six sigma• Executive leadership wishes to impress
shareholders with six sigma language• Why not us…
Reason # 3 Six Sigma project goals are not aligned with Champion’s Goals
Reason # 3 Six Sigma project goals are not aligned with Champion’s Goals
Role of Champion in Six Sigma ProjectsRole of Champion in Six Sigma Projects
• Executive Champion / Champion– Recognizes and defines the project– Charter and sponsors the project– Selects the Black Belt– Arrange resources for the project– Removes roadblocks to project success– Monitors project’s budget – Ultimately responsible for project’s
financial gain– Actively participates in gate reviews &
approval processes
• Executive Champion / Champion– Recognizes and defines the project– Charter and sponsors the project– Selects the Black Belt– Arrange resources for the project– Removes roadblocks to project success– Monitors project’s budget – Ultimately responsible for project’s
financial gain– Actively participates in gate reviews &
approval processes
So why is the champion so important?So why is the champion so important?
• Champion’s success in the organization should partially depend on the project’s success
• Probability of success drops dramatically when black belt has to continuously pull champion into project
• Without an involved sponsor, any project regardless of whether it is Six Sigma or not, would most likely fail to deliver meaningful results
• When the project goals are not in line with champion’s goals, this leads to bottom-up rather than top-down project selection methodology (Reason # 4)
• Champion’s success in the organization should partially depend on the project’s success
• Probability of success drops dramatically when black belt has to continuously pull champion into project
• Without an involved sponsor, any project regardless of whether it is Six Sigma or not, would most likely fail to deliver meaningful results
• When the project goals are not in line with champion’s goals, this leads to bottom-up rather than top-down project selection methodology (Reason # 4)
Reason # 4 A bottom-up rather than top-down project selection methodology
Reason # 4 A bottom-up rather than top-down project selection methodology
What is Top-Down Project Selection Methodology?What is Top-Down Project Selection Methodology?
Strategic Goals / Metrics
Opportunities to reach the goals
Opportunities to reach the goalsStrategic/
Proactive
Problems, Defects, Corrective Actions, Preventive Actions
Issues needing attention
Issues needing attention
Issue Driven/ Reactive
Strategic Goals / Metrics
Opportunities to reach the goals
Opportunities to reach the goalsStrategic/
Proactive
Problems, Defects, Corrective Actions, Preventive Actions
Issues needing attention
Issues needing attention
Issue Driven/ Reactive
Best Scenario for Six Sigma
Not Ideal for Six Sigma
Id Core sub-processes
Id Metric and how to measure the output
Id next sub level process
YES
Use SIPOC to MAP the “Constraint” Sub-
Process
Identify causal Metrics and enabling processes
OutputsMeasurable?
NO
ID Key Core, Sub & Enabling Process & Create High Level
Maps
Six Sigma Projects are Identified and Selected
Six Sigma Project SelectionSix Sigma Project Selection
Reason # 5 No clear financial benefits
Reason # 5 No clear financial benefits
No Clear Financial Benefits…No Clear Financial Benefits…
• As stated earlier, to avoid failure, the goal of a six sigma project should be connected to the corporation’s goals
• As stated by many experts, the goal of (for-profit) corporation’s is to make money
• No money, no strategic benefits, no Six Sigma
• As stated earlier, to avoid failure, the goal of a six sigma project should be connected to the corporation’s goals
• As stated by many experts, the goal of (for-profit) corporation’s is to make money
• No money, no strategic benefits, no Six Sigma
Show me the Money!
Mr. CEO
Reason # 6 The corporation does not have clear processes to support customers
Reason # 6 The corporation does not have clear processes to support customers
Why Focus on CustomerWhy Focus on Customer
• Creates a process focus
• Accrues many benefits (Defect Reduction) from aligning a process with customers
• Creates a process focus
• Accrues many benefits (Defect Reduction) from aligning a process with customers
S I P O C
Suppliers Inputs Outputs CustomersProcess
Traditional Flow
Six Sigma Approach
Customer is the King!
Fin
ance
& A
cco
un
tin
g
Man
ufa
ctu
rin
g
Hu
man
Res
ou
rces
Lo
gis
tics
Qu
alit
y
Pro
du
ct D
evel
op
men
tLeadership
Strategy
Conventional Organizational StructureConventional Organizational Structure Hierarchical Control, Vertical Role Clarification, Functional , Large Hierarchical Control, Vertical Role Clarification, Functional , Large
FunctionsFunctions
Most organizations today are Most organizations today are organized and measured by organized and measured by department and member department and member contributions to “functions”contributions to “functions”
Executive leaders may operate Executive leaders may operate as a team but are focused as a team but are focused individually, on the individually, on the management of functionsmanagement of functions
Strategic priorities are Strategic priorities are translated to functional goals translated to functional goals and objectivesand objectives
Improvements are prioritized Improvements are prioritized and addressed within and addressed within department processes and department processes and competenciescompetencies
Improvement projects are then Improvement projects are then sold to upper managementsold to upper management
Fin
ance
& A
cco
un
tin
g
Man
ufa
ctu
rin
g
Hu
man
Res
ou
rces
Lo
gis
tics
Qu
alit
y
Pro
du
ct D
evel
op
men
t
Leadership Strategy
Customer-Driven OrganizationsCustomer-Driven Organizations Speed, Functional Integration and Line-of-Sight to Customer Speed, Functional Integration and Line-of-Sight to Customer
FunctionsFunctions
Products and services for Products and services for customers are not produced customers are not produced by functions, but by by functions, but by processes which tend to processes which tend to cross functional linescross functional lines
Some of these processes tend Some of these processes tend to be the way the customers to be the way the customers identify with the companyidentify with the company
Functions are (or should be) Functions are (or should be) the residence and building the residence and building place for competenciesplace for competencies
Process capabilities are the Process capabilities are the key leverage points in order to key leverage points in order to achieve strategy (the desired achieve strategy (the desired state of organization)state of organization)
Measurement focuses Measurement focuses process efficacyprocess efficacy
ProcessesC
usto
mers
Cu
stom
ers
FunctionsFunctions
Cu
stom
ersC
usto
mers
Order Generation
Acquisition
Customer Service
Drug Discovery
Order Fulfillment
Common Core Business ProcessesCommon Core Business Processes
Reason # 7Poor or wrong Metrics
Reason # 7Poor or wrong Metrics
How do we identify metrics to evaluate or judge our processes?How do we identify metrics to evaluate or judge our processes?
GoodCustomerService
Knowledgeable reps
Answers given by reps are correctReps can answer questions asked by customer without further research Researched information returned quickly
Friendly reps Customer greeted by name
Customer not interrupted
Short wait Time on hold Customer transferred immediately to the person who can help them
Need Drivers CTQs
General Specific
Hard to measure Easy to measure
GoodCustomerService
Knowledgeable reps
Answers given by reps are correctReps can answer questions asked by customer without further research Researched information returned quickly
Friendly reps Customer greeted by name
Customer not interrupted
Short wait Time on hold Customer transferred immediately to the person who can help them
Need Drivers CTQs
General Specific
Hard to measure Easy to measure
Reason # 8Project has ineffective charter
Reason # 8Project has ineffective charter
How do we Create an Effective Project CharterHow do we Create an Effective Project Charter
We develop charters to ensure:
Business results, process, and resources are SMART:
SPECIFIC business objectives are documented MEASUREABLE and quantified definition of success ACHEIVABLE scope with a documented plan RESOURCE-LIMITED with budget and team clearly
defined, communicated, and agreed upon TIME-LIMITED with a project plan
Having a well defined project charter will reducescope creep, rework, wasted work and frustration
Reason # 9 Solution is obvious
Reason # 9 Solution is obvious
What Should you do when the Solution is Obvious?What Should you do when the Solution is Obvious?
Q: The Solution is Obvious
A: Just Do It
Reason # 10Focusing on output measures
Reason # 10Focusing on output measures
X or Y?X or Y?
Historically the Y, … with Six Sigma the Xs
Process
InputX
OutputY
X
X
X
Process
InputX
OutputY
X
X
X
Why X?Why X?
Y = f(x1, x2, x3, x4,…xn)Y = f(x1, x2, x3, x4,…xn)
Focusing on Output measures isLike looking in a rear view mirror, You can only see were you have been.
Focusing on Output measures isLike looking in a rear view mirror, You can only see were you have been.
“To improve is to change. To be perfect is to change often.”
-Winston Churchill
“To improve is to change. To be perfect is to change often.”
-Winston Churchill
Some Final Thoughts…Some Final Thoughts…
Questions???Questions???
Hope this Presentation Helped in Strengthen your Faith in Six SigmaHope this Presentation Helped in Strengthen your Faith in Six Sigma
Six SigmaSkeptics
Six SigmaSkeptics
Sources
• The Six Sigma Revolution, George Eckes, c. 2001,
John Wiley & Sons, New York.
• Leading Six Sigma, Ronald D. Snee & Roger W.
Hoerl, c. 2003, Pearson Education, Inc.
• ASQ
• LIFE and a lot of mistakes…