麦肯锡SixSigmaLean.ppt

0 SixSigma Lean MMPGlobalConferenceVienna July23 2003 030602MVA he ZZT 786 1 GEhasbecomethe posterchild oftheSixSigmamovement 1987 88 90 92 94 95 96 98 99 01 2002 CumulativeFortune500programlaunchesEstimates Era1 1987 Quality Era2 1994 Financialperformance Era3 1996 PerformanceImprovementUmbrella Era4 2000 Strategicissues WhydidGEadoptSixSigma Intensepressureonmarginsandnoroomforpriceincreases premiumonproductivityMediocrequalityanddisappointedcustomersBillionsofdollarslostincostofpoorqualityReenergizeGE sproductivitymachineEngineforculturaltransformation EvolutionofSixSigma GE Source McKinsey 030602MVA he ZZT 786 2 Deliveryexample SixSigma hasitsrootsinstatisticalprocesscontrol Before Averagedeliverytime 45minutes 55minutes Commitmenttocustomer Before 2 i e 30 85 deliveredoutsidetargettimes After 6 i e only0 0003 deliveredoutsidetargettimes 35minutes Source McKinsey Critical to qualitymetric on timedelivery 7articleslostperhour1 7incorrectoperationsperweek1shortorlonglandingevery5years68wrongprescriptionsperyear 99 99966 Good 6Sigma 99 Good 3 8Sigma Otherprocesscapabilityexamples 20 000lostarticlesofmailperhour5 000incorrectsurgicaloperationsperweek2shortorlonglandingsatmostmajorairportseachday200 000wrongdrugprescriptionseachyear After 20 000lostarticlesofmailperhour5 000incorrectsurgicaloperationsperweek2shortorlonglandingsatmostmajorairportseachday200 000wrongdrugprescriptionseachyear 030602MVA he ZZT 786 3 TheSixSigmaprogramhasthreekeyelements BrainstormingAffinitydiagramsMulti votingHypothesistestingParetochartsFishboneProcessmappingRootcauseproblemsolving MasterBlackBelts fulltime SupportkeylineexecutivesResponsibleforprojectselection training coachingofBlackBeltsandreportingprogress BlackBelts fulltime LeadimprovementprojectsthroughDMAICcycleReceive4weeksofup fronttraining Greenbelts parttime ProvideBlackBeltswithsupporttogetprojectsdoneReceivelessintensivetraining Statistically focusedproblemsolvingtools Dedicatedandcertifiedresources 3 Focusesonreductioninvariationofkeymetrics 2 Drivesmeasurementanddata drivenanalysisofmetricsthatarecriticaltocustomers 1 Createsstandardized disciplinedproblemsolvingapproachusedacrosscompany AllSixSigmaimprovementeffortsoptimizeprocessesbyreducingvariation Definetheproblem Measuretheproblem Define Measure Analyze Improve Control Analyzeandidentifythegap Identifyandimplementsolutions Trackandreviewprogress D M A I C PrescriptiveProblemSolvingProcess DMAIC DesignofexperimentVoiceofthecustomerQualityfunctiondeploymentANOVAEtc 030602MVA he ZZT 786 4 Improvementinfrastructure GE sSixSigmasuccessisbasedonathoughtfulunderstandingofthedriversoflarge scalechange Setaspirations Architectprogram Implementchange Buildmomentum Effective well orchestratedlaunch TraintopleadersandsetaspirationsArchitectprogramandbeginmassivecommunicationdriveSelectanddeployhigh potentialresourcesExecutehighprofileprojectsandmaketeamsheroesRelentlesslycommunicatesuccessesandchangestocome GEusedseveralcoreelementsofsuccessfultransformationprograms Organizationalenablers 1996 1996 1996 97 1997 Source McKinsey 030602MVA he ZZT 786 5 SixSigmaprojectsfollowadisciplinedapproachtoroot causeproblemsolving Define Measure Analyze Improve Control Whatistheproblem Goal Customers Processtoimprove Whatistheex tentofthepro blem EfficiencyEffectivenessWhatdatadoweneedtogettotherootcauses RangeofoptionsSolutionsBestpragmaticsolutions FullrangeofsolutionsTheselectfewThe optimalandpragmaticsolu tion SmallscalepilotFullscaleimplementation TacticallevelProcessstandardizationProcessthrough putStrategiclevelDisciplineduseofbusinesspro cessmanage mentbysteeringcommittee Keyelements Deliver ables Clarityonwhatis inscope andwhatis outofscope In depthunder standingofhowbigtheproblemisanddatatogettothebottomofit Datadrivenrigorouscon clusionsonthevitalrootcausesfortheproblem Fullyimple mentedsolu tionbasedonlessonsfrompilot StableprocessSystemtokeepitstableFullyintegratedintobusinessgoalsExecutivesfullyinvolved Source McKinsey DMAIC 030602MVA he ZZT 786 6 SixSigmahashadhighimpactonservicebusinesses ProblemdefinitionReduceaccountsreceivablestobest practicelevelsin24weeksOrganizationalenablersandimprovementinfrastructureCFOsponsorwithdivisionheadspresentatprojectlaunchCFOanddivisionheadsattendkeystatusreviewsBlackBeltcoachandguidebutledbyfinancemanagerProjecttrackedbySixSigmastaffandthroughsteeringcommitteemeetingsProblemsolvingmethodologyandtoolsDMAICToolsusedonproject brain storming fishbone pareto histo grams scatterplots checksheets controlchartsis isnot forcefieldanalysis simpleFMEA poke yokeResultsReducedARby90 forannualbenefitsexceedingUSD4million Sampletoolsused Fishbone defectiveinvoice Pareto Recommendations Controlchart PO T C Deli very Other ImproveinvoicequalitybyfollowingactionsMandatorycheckofPOagainstinvoice5 daytrainingofpersonnelbyexperiencedguruswithbestpracticesOneinvoiceperPOwithitemizedlistofallitemsImplementsegmentbasedcontrolsystemforcustomers SettargetgoalintoannualMBOtoensureaccountabilitySetguidelinesforaction red yellow greenflagsforescalatingactionsObservestrict penaltiesforlatepaymentMonitorecontrolchartofkeymetrics Days USDdelin quencydays USDinvoicexdayslate Uppercontrollimit Upperspec limit Lowerspec limit Lowercontrollimit Specialcauses Source McKinsey PROJECT REDUCEDELINQUENTACCOUNTSRECEIVABLES 030602MVA he ZZT 786 7 Greenbelt Blackbelt Executivesponsor divisionmanager Part time positionleadingSixSigma ContinuesfulfillingcurrentjobresponsibilitiesTrainedinSixSigmatools providesfunctional divisionalknowledgeandexpertiseMentoredbyablackbeltCommunicatesSixSigmamethodologytoothersintheorganization Full timededicationtoSixSigma LeadsprojectsandsharesresponsibilityfordeliverablesApplies right SixSigmamethodologyandtoolstoensurequalityofprocessEscalateissuestomanagementTrainsandcoachesteammembers ProposesSixSigmaimprovementprojectsandresponsiblefordeliverablesResolvesissuesPromotesSixSigmastrategyandmethodologyUnderstandsSixSigmastrategy disciplineandtools SixSigmaroles Source McKinsey 030602MVA he ZZT 786 8 AlthoughtheimpactfromSixSigmahasbeensignificantforGE Percentofsales SixSigmanetfinancialimpact USDm GEtotalrevenuesUSDbn 20 550 760 1 490 2 000 79 90 100 112 130 SingleperformanceimprovementthemeCustomerperspectiveCommonlanguageFactbasedproblemsolvingEnhancedcapabilitiesPowerfulengineforculturalchangeFacilitatedsuccessofotherinitiatives HarddollarbenefitsforGE SoftbenefitsforGE Source McKinsey 030602MVA he ZZT 786 9 Weaknesses Project centricQuickwinsremovefocusonstrategicmovesContentneutralprocessprescriptiveNeedsstrongorganizationalelementtosucceedDisconnectspossiblebetweenqualityandsavings SixSigmaisnotapanaceaforallills ithasitsownsetofstrengthsandweaknesses Source McKinsey LeancancomplementSixSigmatoovercomemanyofitsmajorweaknesses Strengths CommonlanguageCustomerfocusBottom lineresultsReallinemanagementinvolvementFact basedproblemsolvingmethodologyComprehensivesetoftoolsBuildsnewgenerationofleadersTakescapabilityoforganizationtonextlevelStronginfrastructurehelpsotherinitiatives 030602MVA he ZZT 786 10 Moreover fewcompaniesareabletouseSixSigmaeffectivelyduetoasmallnumberofrootcauses Source McKinsey Lackofrealinvolvementbytopandlinemanagement SixSigmaisaprogramrunbyastafforganizationRewardsandincentivesarenotalignedwithSixSigmaprogram nobreakdownandassignmentoftargetsforlinemanagementwithaccountabilitytiedtoincentivesStaffingSixSigmawithdeadwoodinsteadoftoptalentIneffectiveprojectselectionsystemIneffectiveprojectmanagementwithnodropdeaddatesforprojectsNoeffectivesystemforbestpracticereplicationRapidtrainingoflargenumbersofpeople whohavenoprojectstoworkonProcessmeasures suchasnumberofpeopletrained numberofprojectslaunchedonlyassessprogressandnotresultsLackofunderstandingofthedifficultiesinherentinchangemanagement TypicalrootcausesforineffectiveSixSigmaimplementation 030602MVA he ZZT 786 11 SixSigmaspaceandourcapabilities Source McKinsey Clientneeds Ourcapabilities ConsideringSixSigmaandneedanobjectiveassessmentofprosandconsSixSigmaisnotdeliveringexpectedresultsandneedarapidassessmentandrecommendationstofixitNeedhelpinacceleratingexistingandunder performingSixSigmainitiativeNeeddeepsubjectmatterexpertiseandprescriptivesolutionstomovetothenextlevelofperformance SixSigmaExecutiveAwarenessTraining objectiveviewofSixSigmaforexecutivesSixSigmaDiagnostic 3 5daySixSigmadiagnosticofSixSigmacompaniesSixSigmaAcceleration forcomatoseprogramsbybuildinganeffectivetransformationenginetocomplementtheirproblemsolvingandtoolsalreadyinplaceInfusionofdeepprescriptivefunctionalknowledgeintocompanieswithrobustSixSigmaprogramsLeanSixSigmaPricingSourcingSupplychainmanagement 030602MVA he ZZT 786 12 LeanSixSigmaintegration 030602MVA he ZZT 786 13 ManycompanieswishtobuildontheirSixSigmaprograms ThecompanyhaslaunchedacompanywideSixSigmaprograminresponsetoexternalpressuresseveralyearsagoAsizeableinvestmentandeffortshavebeenputintoresourceinfrastructurebuilding andtrainingAftershowingearlyreturns therateofimprovementhasbeguntoslowThereisinterestinfurthercontentadditionspecificallyaroundembracingleanmanufacturingManagementacceptanceandcommitmenttocontinuingtheSixSigmaprogramremainshighThecompanywouldliketocontinueimprovementsbyseamlesslyintegratingLeanintotheSixSigmaprogram 030602MVA he ZZT 786 14 DespitesomecommonelementsleanandSixSigmahavesignificantdifferences Whatis anintegratedoperatingsystemofprinciples practices toolsandtechniques astructuredimprovementmethodologyusingastandardapproachandstatisticaltools Drivingprinciple ReducewasteSynchronizeflowsManagevariability Reducevariation OperationalKPIscascadedtofrontline Projectmetrics Performancemanagement LeanexpertsTeamleadersNaturalteams Infrastructure involvement Blackbelts MBBs GBsSixSigmaprojectsupportAdhocteams PrescriptivesolutionsOnepieceflowPullSystemSMEDStandardizedwork PrescriptiveprocessesDMAICDMADV DFSSStatisticalapproachesDOEGaugeR R Problemsolving SystematicvaluestreammappingCurrentstateandfuturestate Drivenbykeyissuesandproblemsincurrentprocesses Projectselection RootcauseanalysisProcessmappingBasicanalytictools Lean SixSigma 030602MVA he ZZT 786 15 SynergiesbetweenLeanandSixSigma SixSigmaShortfallsProjectcentricElitistRigidprocessKPIdisconnectNoprescriptivesolutions HoweverLeanandSixSigmacanbehighlycomplementary 030602MVA he ZZT 786 16 SynergiesbetweenLeanandSixSigma SixSigmaShortfallsProjectcentricElitistRigidprocessKPIdisconnectNoprescriptivesolutions HoweverLeanandSixSigmacanbehighlycomplementary 030602MVA he ZZT 786 17 HoweverLeanandSixSigmacanbehighlycomplementary SynergiesbetweenLeanandSixSigma LeanPositivesHolisticandsystemsorientedFrontlineinvolvementStandardpracticesKPIdeployedtoalllevelsEndstatedrivenprojectselectionPrescriptivesolutions SixSigmaShortfallsProjectcentricElitistRigidprocessKPIdisconnectNoprescriptivesolutions 030602MVA he ZZT 786 18 SynergiesbetweenLeanandSixSigma SixSigmaShortfallsProjectcentricElitistRigidprocessKPIdisconnectNoprescriptivesolutions HoweverLeanandSixSigmacanbehighlycomplementary LeanPositivesHolisticandsystemsorientedFrontlineinvolvementStandardpracticesKPIdeployedtoalllevelsEndstatedrivenprojectselectionPrescriptivesolutions LeanShortfallsDifficulttounderstandDifficulttoscaleRigorcansufferWeaktietobottomlineTopmanagementunderstandingsuperficial 030602MVA he ZZT 786 19 Thetypicalintegrationapproachesaretoonarrow DonotunderstandfundamentaldifferencesbetweenLeanandSixSigma viewLeanastoolkitvs totalsystemapproachDonotincorporateLean ssystemicvaluestreammappingandendstateviewinprojectselectionprocessDonottakeadvantageofLeanprescriptivesolutionstoavoidreinventingthewheelDonotensurefrontlineinvolvementDonotproviderequiredbreadthanddepthincapabilitybuilding frontline topmanagement practitionersDonotalterperformancemanagementsystemtocascadeKPIstofrontline 030602MVA he ZZT 786 20 Also theydonotaddressthetypicalimplementationissues Leanpitfalls SixSigmapitfalls Lacksvision Topmanagement Lacksinvolvement Resources Inadequatecriticalmass Eliteresourcemodel Projectselection Notdrivenbyendstate Notconnectedtolinemanagement srealpriorities Performancemanagement KPIsnotdefinedorcascaded ProjectmetricsdisconnectedfromCTQs Middlemanagementsupportandownership Weak Weak Deployment Toolcentric Projectcentric 030602MVA he ZZT 786 21 Werecommendafivebuildingblockapproachtointegration AssesswhethercurrentSixSigmaprogramprovidesarobustenoughplatformforintegration DriveprojectselectionfromasystemicendstatevaluestreamviewDelineatebestproblemsolvingapproachforeachclassofproblem TriggerdemandbydefiningKPIcascadeMatchandpacecapabilitybuildingtoproposedroles actionplansandaugmentwithLeanexperts EnhancebyLeanKPI scascadeandrealtimedialoguedowntofrontlines Planthemulti yearjourneyonatimeline Programreadiness Projectselectionandsolutionmethodologydecisionroadmap Organizationalacceptanceandcapabilitybuilding Performancemanagement Implementationplans 1 2 3 4 5 030602MVA he ZZT 786 22 IntegrationofLeanandSixSigmaKnowledgeSessionC 030602MVA he ZZT 786 23 Werecommendafivebuildingblockapproachtointegration AssesswhethercurrentSixSigmaprogramprovidesarobustenoughplatformforintegration DriveprojectselectionfromasystemicendstatevaluestreamviewDelineatebestproblemsolvingapproachforeachclassofproblem TriggerdemandbydefiningKPIcascadeMatchandpacecapabilitybuildingtoproposedroles actionplansandaugmentwithLeanexperts EnhancebyLeanKPI scascadeandrealtimedialoguedowntofrontline Planthemulti yearjourneyonatimeline Programreadiness Projectselectionandsolutionmethodologydecisionroadmap Organizationalcapabilitybuilding Performancemanagement Implementationplans 1 2 3 4 5 030602MVA he ZZT 786 24 Thediagnosticwillfocusonthreecriticalelements Elements FinancialOperational CultureCapabilitybuilding trainingCommonoperatinglanguagePerformanceethicOrganization CorefoundationsProgramleadership actionsChangeagents talentmanagementRewardsandincentivesProvenimprovementapproachesandanalyticaltoolsCommunicationsystemSME programadditionsPerformancemanage mentandtrackingsystem Keyquestions Whataretheconcreteresultsachievedsofar Howhavetheculture mindset andbehaviorsoftheorganizationbeenchangedbySixSigma Howrobustandwell designedistheinitiativearchitecture Concreteresults Softbenefits Programarchitectureandimplementation 030602MVA he ZZT 786 25 Thediagnosticwillestablishoneofthreepathsgoingforward MakesignificantimprovementstoSixSigmapro gramandholdoffonaddingLean AddLeantoexistingrobustSixSigmaprogram Makeimprove mentstoSixSigmaprogramandaddLean SixSigmaprogramisintroubleandneedsamajoroverhaultodelivermeaningfulresultsOverhauloftheprogramshouldbeginimmediatelywithcloseoversightfromthetopAddingLeanwillnotbeeffectiveatthispoint SixSigmaisrunningwellanddeliveringresultsTheinfrastructureishealthyandthetimingisrighttosuccessfullytakeonanewinitiativeLeancanquicklyrealizesubstantialbenefitsbyapplyingprescriptivesolutionstoexistinghighyieldopportunities SixSigmaisperformingbutnotatitsfullpotentialTheprogramcanbetuneduptobestinclasswithoutamajoroverhaulAdditionofLeancanrealizehighpotentialopportunitiesthroughprescriptivesolutions 030602MVA he ZZT 786 26 Programreadiness keyquestions1 Doestheoverallapproachandframeworkmakessense 2 Couldthistoolbeusedforclienteledevelopment 030602MVA he ZZT 786 27 Valuestreammappingshouldbeakeyelementinprojectselection CompanyX Valuestream1 Valuestream2 Valuestream9 Importanceofvaluestreamtobusiness Manufacturingstrategy Operationsassessment Brainstormingideas Comprehensivelistofimprove mentideasforeachvaluestream 030602MVA he ZZT 786 28 Leanbasictools Leansystemdesign SixSigmaDMAIC Justdoit Foreachproblemtheoptimalsolutionsmethodologyshouldbeselected Examples Rationale Whererootcausesareveryclearandcanbeaddressedbytime testedLeanprescriptivesolutions Change overreductionOverallequipmentefficiencyStandardizedwork Wheretheproblemandsolutionsaresystematicandinvolveredesignofmultiplesteps complexprocesses orflows PlantlayoutredesignSchedulingsystemsMaterialandinfor mationflowchanges Whererootcausesareunclearandlikelytorequiresignificantdata drivenana lysisanduniquesolutionsinacross functionaleffort CycletimevariationScrapandreworkProcessfluctuations Wheretheproblemrequiresnofurtheranalysisandcanbeaddressedbysound well definedpractices JobinstructionVisualmanagementKeymetricsdisplayandtracking 030602MVA he ZZT 786 29 Projectselectionandsolutionmethodologydecisionroadmap keyquestions1 Istheproposedprojectselectionmethodologycomprehensiveandhowimportantshouldvaluestreammappingbe 2 Isasolutiondecisionroadmapnecessary 3 Istheproposedroadmappracticalandrelevanttoyourclientsituations 030602MVA he ZZT 786 30 Therearesixbasicimperativesinaddingleancapability Createasequenceddelivery Usemultipletrainingdeliverymethods Matchcapabilitytoroles CreateaLeanexpertrole DefineoperationKPI sandcascade Providethecontextforleancapabilitybuildingandtoensurethatcapabilitybuildingismirroredspecificallytomatchimprovementneeds Ensuresustainedexpertisetosupportimplementationinprojectsthatrequirespecificleanskillsandsystemdesignexpertise Tailorthecapabilitybuildingfordifferentlevelstotheroletheywillplayinleanintegration Avoidoverwhelmingtheorganizationandprogram derivemaximumbenefitfromactionlearning Sequencedeliveryofprojects training andcapabilitybuildinginconcertwithprojectsformaximumimpactandeffectiveness Usearapidseedandcascadeapproachinrollout SpeedimplementationacrosstheorganizationtotakeadvantageoftheexistingSixSigmainfrastructure 1 2 3 4 5 6 030602MVA he ZZT 786 31 Createasequenceddeliverytomatchtheorderofprojectrollout Typicalactionsequence Keyknowledgepoints CreateLeanawareness BasicconceptsOverallapproach DesignCS FS selectprojects ValuestreammappingSystemdesign Sustainimprovements PerformancemanagementandimprovementgoalsOverallmaintenance DeployLeantools TakttimeLinebalance Standardizedwork Implementjust do itbasicelements Wastereduction5S VisualcontrolsProductiontracking OEERCA problemsolving Stability SMEDPM FlowLoops Pull KanbanLevel Basicflowormaterial information Flow CelllayoutMateriallocation 030602MVA he ZZT 78