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1、Six SigmaSix Sigma& Lean& LeanMMP Global ConferenceVienna, July 23, 20030GE has become the poster child of the Six Sigma movement 1987 889092949596989901 2002Cumulative Fortune 500 program launchesEstimatesEra 1 (1987) QualityEra 2 (1994) Financial performanceEra 3 (1996) Performance Improvement Umb
2、rella Era 4 (2000) Strategic issuesWhy did GE adopt Six Sigma?Intense pressure on margins and no room for price increases premium on productivityMediocre quality and disappointed customersBillions of dollars lost in cost of poor qualityReenergize GEs productivity machineEngine for cultural transform
3、ationEvolution of Six SigmaGEGESource: McKinsey1Delivery exampleSix Sigma has its roots in statistical process controlBeforeAverage delivery time: 45 minutes55 minutes(Commitment to customer)Before: 2 (i.e., 30.85% delivered outside target times)After: 6 (i.e., only 0.0003% delivered outside target
4、times)35 minutesSource: McKinseyCritical-to-quality metric: on-time delivery7 articles lost per hour1.7 incorrect operations per week1 short or long landing every 5 years68 wrong prescriptions per year99.99966% Good (6 Sigma)99% Good (3.8 Sigma)Other process capability examples20,000 lost articles o
5、f mail per hour5,000 incorrect surgical operations per week2 short or long landings at most major airports each day200,000 wrong drug prescriptions each yearAfter20,000 lost articles of mail per hour5,000 incorrect surgical operations per week2 short or long landings at most major airports each day2
6、00,000 wrong drug prescriptions each year2The Six Sigma program has three key elementsBrainstormingAffinity diagramsMulti-votingHypothesis testingPareto chartsFishboneProcess mappingRoot cause problem solvingMaster Black Belts(full time)Support key line executivesResponsible for project selection, t
7、raining/coaching of Black Belts and reporting progressBlack Belts(full time)Lead improvement projects through DMAIC cycleReceive 4 weeks of up-front trainingGreen belts(part time)Provide Black Belts with support to get projects doneReceive less intensive trainingStatistically-focused problem solving
8、 toolsDedicated and certified resources3.Focuses on reduction in variation of key metrics2.Drives measurement and data-driven analysis of metrics that are critical to customers1.Creates standardized, disciplined problem solving approach used across companyAll Six Sigma improvement efforts optimize p
9、rocesses by reducing variationDefine the problemMeasure the problemDefineMeasureAnalyzeImproveControl Analyze and identify the gapIdentify and implement solutionsTrack and review progressD DMMA AI IC CPrescriptive Problem Solving Process DMAICDesign of experimentVoice of the customerQuality function
10、 deploymentANOVAEtc.3Improvement infrastructure GEs Six Sigma success is based on a thoughtful understanding of the drivers of large-scale change1243Set aspirationsArchitect programImplement changeBuild momentumEffective, well-orchestrated launchTrain top leaders and set aspirationsArchitect program
11、 and begin massive communication drive Select and deploy high-potential resourcesExecute high pro and make teams heroesRelentlessly communicate successes and changes to comeGE used several core elements of successful transformation programsOrganizational enablersLeadership Intense involvement of top
12、 and line leadershipProgram designRobust roadmap and processesPerformance management Goals baked into budgets at all levels Dedicated resourcesBest resources with clear career pathsTalent/skill development Multi-level training Program supportRuthless project manage-mentProblem solving Disciplined us
13、e of DMAIC and tools199619961996 - 971997Source: McKinsey4Six Sigma projects follow a disciplined approach to root-cause problem solving Clearly definethe problem, the goal, and the processBaseline and further refine the problem Analyze to identify the vital few root causes Select solu-tions; test o
14、n pilot; imple-ment full scale Control the process to sustain gains Define Measure Analyze Improve Control What is the problem?Goal?Customers?Process to improve?What is the ex-tent of the pro-blem?EfficiencyEffectivenessWhat data do we need to get to the root causes?Range of optionsSolutionsBest pra
15、gmatic solutions Full range of solutionsThe select fewThe optimal and pragmatic solu-tionSmall scale pilotFull scale implementationTactical levelProcess standardizationProcess through-putStrategic levelDisciplined use of business pro-cess manage-ment by steering committeeKey elementsDeliver-ablesCla
16、rity on what is in scope and what is out of scopeIn-depth under-standing of how big the problem is and data to get to the bottom of itData driven rigorous con-clusions on the vital root causes for the problemFully imple-mented solu-tion based on lessons from pilotStable processSystem to keep it stab
17、leFully integrated into business goalsExecutives fully involved Source: McKinseyDMAIC 5Six Sigma has had high impact on service businesses Problem definitionReduce accounts receivables tobest-practice levels in 24 weeks Organizational enablers and improvement infrastructureCFO sponsor with division
18、heads present at project launchCFO and division heads attend key status reviewsBlack Belt coach and guide but led by finance managerProject tracked by Six Sigma staff and through steering committee meetingsProblem solving methodologyand toolsDMAICTools used on project brain-storming, fishbone, paret
19、o, histo-grams, scatter plots, check sheets, control charts is-is not, force field analysis, simple FMEA, poke-yokeResultsReduced AR by 90% for annual benefits exceeding USD 4 millionSample tools used Fishbone defective invoice ManMeasure-mentMachine MethodMaterialEnvironmentDefective invoiceTrainin
20、g Metrics No check against POPareto RecommendationsControl chartPOT&CDeli-veryOtherImprove invoice quality by following actionsMandatory check of PO against invoice5-day training of personnel by experienced gurus with best practicesOne invoice per PO with itemized list of all itemsImplement segment
21、based control system for customers. Set target goal into annual MBO to ensure accountability Set guidelines for action, red, yellow, green flags for escalating actions Observe strict $ penalties for late payment Monitore control chart of key metrics Days(USD delin-quency days) = USD invoice x days l
22、ateUpper control limitUpper spec. limitLower spec. limitLower control limit Special causesSource: McKinseyPROJECT REDUCE DELINQUENT ACCOUNTS RECEIVABLES 6Green beltBlack beltExecutive sponsor/division managerPart-time-position leading Six Sigma. Continues fulfilling current job responsibilities Trai
23、ned in Six Sigma tools, provides functional/ divisional knowledge and expertiseMentored by a black belt Communicates Six Sigma methodology to others in the organizationFull-time dedication to Six Sigma; Leads projects and shares responsibility for deliverablesApplies right Six Sigma methodology and
24、tools to ensure quality of process Escalate issues to managementTrains and coaches team membersProposes Six Sigma improvement projects and responsible for deliverablesResolves issues Promotes Six Sigma strategy and methodologyUnderstands Six Sigma strategy, discipline and toolsSix Sigma roles Source
25、: McKinsey7Although the impact from Six Sigma has been significant for GE .Percent of salesSix Sigma net financial impact*USD mGE total revenuesUSD bn-20550760 1,490 2,0007990100112130Single performance improvement themeCustomer perspective Common languageFact based problem solvingEnhanced capabilit
26、iesPowerful engine for cultural changeFacilitated success of other initiatives Hard dollar benefits for GESoft benefits for GESource: McKinsey8WeaknessesProject-centricQuick wins remove focus on strategic movesContent neutral process prescriptive Needs strong organizational element to succeed Discon
27、nects possible between quality and savings. Six Sigma is not a panacea for all ills it has its own set of strengths and weaknesses Source: McKinseyLean can complement Six Sigma to overcome many of its major weaknesses StrengthsCommon languageCustomer focusBottom-line resultsReal line management invo
28、lvementFact-based problem solving methodologyComprehensive set of toolsBuilds new generation of leadersTakes capability of organization to next levelStrong infrastructure helps other initiatives9More over, few companies are able to use Six Sigma effectively due to a small number of root causes Sourc
29、e: McKinseyLack of real involvement by top and line management Six Sigma is a program run by a staff organizationRewards and incentives are not aligned with Six Sigma program no breakdown and assignment of targets for line management with accountability tied to incentivesStaffing Six Sigma with dead
30、wood instead of top talentIneffective project selection systemIneffective project management with no drop dead dates for projectsNo effective system for best practice replicationRapid training of large numbers of people who have no projects to work onProcess measures, such as number of people traine
31、d, number of projects launched only assess progress and not resultsLack of understanding of the difficulties inherent in change managementTypical root causes for ineffective Six Sigma implementation10Six Sigma space and our capabilities Source: McKinseyClient needsOur capabilities Considering Six Si
32、gma and need an objective assessment of pros and consSix Sigma is not delivering expected results and need a rapid assessment and recommendations to fix itNeed help in accelerating existing and under-performing Six Sigma initiativeNeed deep subject matter expertise and prescriptive solutions to move
33、 to the next level of performance 中国最大的资料库下载Six Sigma Executive Awareness Training objective view of Six Sigma for executivesSix Sigma Diagnostic 3 - 5 day Six Sigma diagnostic of Six Sigma companies Six Sigma Acceleration for comatose programs by building an effective transformation engine to compl
34、ement their problem solving and tools already in placeInfusion of deep prescriptive functional knowledge into companies with robust Six Sigma programs Lean Six SigmaPricingSourcingSupply chain management11Lean Six Sigma integration12Many companies wish to build on their Six Sigma programsThe company
35、 has launched a company wide Six Sigma program in response to external pressures several years agoA sizeable investment and efforts have been put into resource infrastructure building, and trainingAfter showing early returns, the rate of improvement has begun to slowThere is interest in further cont
36、ent addition specifically around embracing lean manufacturingManagement acceptance and commitment to continuing the Six Sigma program remains highThe company would like to continue improvements by seamlessly integrating Lean into the Six Sigma program13Despite some common elements lean and Six Sigma
37、 have significant differencesWhat is . an integrated operating system of principles, practices, tools and techniques. a structured improvement methodology using a standard approach and statistical toolsDriving principleReduce wasteSynchronize flowsManage variabilityReduce variationOperational KPIs c
38、ascaded to front lineProject metricsPerformancemanagementLean expertsTeam leadersNatural teamsInfrastructure &involvementBlack belts, MBBs, GBsSix Sigma project supportAd hoc teamsPrescriptive solutionsOne piece flowPull SystemSMEDStandardized workPrescriptive processesDMAICDMADV/DFSSStatistical app
39、roachesDOEGauge R&RProblemsolvingSystematic value stream mapping Current state and future stateDriven by key issues and problems in current processesProject selectionRoot cause analysisProcess mappingBasic analytic toolsLeanSix Sigma14Synergies Synergies between Lean between Lean and Six Sigmaand Si
40、x SigmaSix Sigma Shortfalls Project centric Elitist Rigid process KPI disconnect No prescriptive solutionsHowever Lean and Six Sigma can be highly complementary15Synergies Synergies between Lean between Lean and Six Sigmaand Six SigmaLean PositivesHolistic and systems orientedFront line involvementS
41、tandard practicesKPI deployed to all levelsEnd state driven project selectionPrescriptive solutionsSix Sigma Shortfalls Project centric Elitist Rigid process KPI disconnect No prescriptive solutionsHowever Lean and Six Sigma can be highly complementary16Lean ShortfallsDifficult to understandDifficul
42、t to scaleRigor can sufferWeak tie to bottom lineTop management understanding superficialHowever Lean and Six Sigma can be highly complementarySynergies Synergies between Lean between Lean and Six Sigmaand Six SigmaLean PositivesHolistic and systems orientedFront line involvementStandard practicesKP
43、I deployed to all levelsEnd state driven project selectionPrescriptive solutionsSix Sigma Shortfalls Project centric Elitist Rigid process KPI disconnect No prescriptive solutions17Synergies Synergies between Lean between Lean and Six Sigmaand Six SigmaSix Sigma Shortfalls Project centric Elitist Ri
44、gid process KPI disconnect No prescriptive solutionsHowever Lean and Six Sigma can be highly complementarySix Sigma PositivesCommon languageScalable infrastructureFact based rigorBottom line orientedTop management relates to it easilyLean PositivesHolistic and systems orientedFront line involvementS
45、tandard practicesKPI deployed to all levelsEnd state driven project selectionPrescriptive solutionsLean ShortfallsDifficult to understandDifficult to scaleRigor can sufferWeak tie to bottom lineTop management understanding superficial18The typical integration approaches are too narrowDo not understa
46、nd fundamental differences between Lean and Six Sigma: view Lean as toolkit vs. total system approach Do not incorporate Leans systemic value stream mapping and end state view in project selection process 中国最大的资料库下载Do not take advantage of Lean prescriptive solutions to avoid reinventing the wheelDo
47、 not ensure front line involvement Do not provide required breadth and depth in capability building: front line, top management, practitionersDo not alter performance management system to cascade KPIs to front line19Also, they do not address the typical implementation issuesLean pitfallsSix Sigma pi
48、tfallsLacks visionTop managementLacks involvementResourcesInadequate critical massElite resource modelProject selectionNot driven by end stateNot connected to line managements real prioritiesPerformance managementKPIs not defined or cascadedProject metrics disconnected from CTQsMiddle management sup
49、port and ownershipWeakWeakDeploymentTool centricProject centric20We recommend a five building block approach to integrationAssess whether current Six Sigma program provides a robust enough platform for integrationDrive project selection from a systemic end state value stream viewDelineate best probl
50、em solving approach for each class of problemTrigger demand by defining KPI cascadeMatch and pace capability building to proposed roles & action plans and augment with Lean expertsEnhance by Lean KPIs cascade and real time dialogue down to front linesPlan the multi-year journey on a timelineProgram
51、readinessProgram readinessProject selection and Project selection and solution methodology solution methodology decision roadmapdecision roadmapOrganizational Organizational acceptance and acceptance and capability buildingcapability buildingPerformance Performance managementmanagementImplementation
52、 plansImplementation plans1234521Integration of Lean and Six SigmaKnowledge Session C22We recommend a five building block approach to integrationAssess whether current Six Sigma program provides a robust enough platform for integrationDrive project selection from a systemic end state value stream vi
53、ewDelineate best problem solving approach for each class of problemTrigger demand by defining KPI cascadeMatch and pace capability building to proposed roles & action plans and augment with Lean expertsEnhance by Lean KPIs cascade and real time dialogue down to front linePlan the multi-year journey
54、on a timelineProgram readinessProgram readinessProject selection and Project selection and solution methodology solution methodology decision roadmapdecision roadmapOrganizational Organizational capability buildingcapability buildingPerformance Performance managementmanagementImplementation plansImp
55、lementation plans1234523The diagnostic will focus on three critical elementsElementsFinancialOperationalCultureCapability building & trainingCommon operating languagePerformance ethic OrganizationCore foundations Program leadership & actionsChange agents/talent managementRewards and incentivesProven
56、 improvement approaches and analytical toolsCommunication systemSME/program additionsPerformance manage-ment and tracking systemKey questionsWhat are the concrete results achieved so far?How have the culture, mindset, and behaviors of the organization been changed by Six Sigma?How robust and well-de
57、signed is the initiative architecture?Concrete resultsSoft benefitsProgram architecture and implementation24The diagnostic will establish one of three paths going forwardMake significant improvements to Six Sigma pro-gram and hold off on adding LeanAdd Lean to existing robust Six Sigma program Make
58、improve-ments to Six Sigma program and add LeanSix Sigma program is in trouble and needs a major overhaul to deliver meaningful resultsOverhaul of the program should begin immediately with close oversight from the topAdding Lean will not be effective at this pointSix Sigma is running well and delive
59、ring resultsThe infrastructure is healthy and the timing is right to successfully take on a new initiativeLean can quickly realize substantial benefits by applying prescriptive solutions to existing high yield opportunitiesSix Sigma is performing but not at its full potentialThe program can be tuned
60、 up to best in class without a major overhaulAddition of Lean can realize high potential opportunities through prescriptive solutions25Program readiness key questions1. Does the overall approach and framework makes sense?2. Could this tool be used for clientele development?26Value stream mapping sho
61、uld be a key element in project selectionCompany XValue stream 1Value stream 2Value stream 9. . .Importance of value stream to businessManufacturing strategyOperations assessmentBrainstorming ideasComprehensive list of improve-ment ideas for each value stream27Lean basictoolsLean systemdesignSix Sig
62、maDMAICJust do itFor each problem the optimal solutions methodologyshould be selectedExamplesRationaleWhere root causes are very clear and can be addressed by time-tested Lean prescriptive solutionsChange-over reductionOverall equipment efficiencyStandardized workWhere the problem and solutions are
63、systematic and involve redesign of multiple steps, complex processes, or flowsPlant layout redesignScheduling systemsMaterial and infor-mation flow changesWhere root causes are unclear and likely to require significant data-driven ana-lysis and unique solutions in a cross-functional effortCycle time
64、 variationScrap and reworkProcess fluctuationsWhere the problem requires no further analysis and can be addressed by sound, well-defined practicesJob instructionVisual managementKey metrics display and tracking28Project selection and solution methodology decision roadmap key questions1. Is the propo
65、sed project selection methodology comprehensive and how important should value stream mapping be?2. Is a solution decision roadmap necessary?3. Is the proposed roadmap practical and relevant to your client situations?29There are six basic imperatives in adding lean capabilityCreate a sequenced deliv
66、eryUse multiple trainingdelivery methodsMatch capabilityto rolesCreate a Lean expert roleDefine operation KPIsand cascadeProvide the context for lean capability building and to ensure that capability building is mirrored specifically to match improvement needsEnsure sustained expertise to support im
67、plementation in projects that require specific lean skills and system design expertiseTailor the capability building for different levels to the role they will play in lean integrationAvoid overwhelming the organization and program; derive maximum benefit from action learningSequence delivery of pro
68、jects, training, and capability building in concert with projects for maximum impact and effectivenessUse a rapid seed and cascade approach in rollout Speed implementation across the organization to take advantage of the existing Six Sigma infrastructure30Create a sequenced delivery to match the ord
69、er of project rolloutTypical action sequenceKey knowledge pointsCreate Lean awarenessBasic conceptsOverall approachDesign CS/FS,select projectsValue stream mappingSystem design Sustain improvementsPerformance management and improvement goalsOverall maintenanceDeploy Lean toolsTakt timeLine balanceSt
70、andardized workImplement just-do-it basic elementsWaste reduction5SVisual controlsProduction trackingOEERCA & problem solvingStabilitySMEDPMFlowLoopsPullKanbanLevelBasic flow or material & informationFlowCell layoutMaterial location31Organizational capability building key questions1. Are the propose
71、d six imperatives in adding lean capability appropriate?2. Any thoughts on how we can develop deep lean experts at clients?3. Will the sequenced delivery work well?32Good performance management systems can be enhanced by Six Sigma and LeanBasicPerformanceManagementSix SigmaRefinementsSpecific Lean E
72、nhancementsBefore adding more advanced practices basic elements of performance man-agement must be masteredSix Sigma is not a substitute for an effective perfor-mance management systemKey messagesCTQ cascadeTimely reviewsDisciplined executionVisible accountabilityValue stream perspectiveCascade to f
73、ront line Balanced metricsPerformance dialogue 33But not if the foundation is not strongDiagnostic conclusionsImplicationsStrong core foundation in per-formance management with enhancements in place from Six SigmaWeak performance management system and Six Sigma serving as de-facto project centric pe
74、rformance management systemImplement Lean to further enhance performance man-agement system and realize added valueFix core foundation of per-formance management system and hold off on further addition34Performance management key questions1. How can we overcome the fact that often Six Sigma becomes
75、the default performance management system?2. Do you agree with the thought that lean enhancements should not be added if the foundation is weak?35McKinsey can get involved in multiple activities in the journeyDevelop a tailored approach for the client building upon the five step process outlined her
76、eConduct the program readiness diagnosticDevelop the overall program architecture and roll out planDesign the appropriate KPI cascade to deliver resultsAssist in initial value stream mapping to aid in project selection and prioritizationDevelop the capability building plan and materials to conduct initial trainingProvide lean expertise as necessaryParticipate in roll out as mutually agreed36McKinsey involvement key questions1. Do you see this topic and the overall approach as being relevant to your clients?2. Where can McKinsey add greatest value in this journey?37
