Six Sigma Qualtec Improving Your Business Results There

Improving Your Business Results Six Sigma Qualtec Deployment Alternatives Drive Improvement (Push Model) • • • Deployment Ofc (“DO) sets foundation up-front and the deployment is highly prescriptive DO assumes ownership over execution of business unit projects DO has central management of resources; project staff are loaned out to business units DO manages external staff procurement where and when required DO implements std policies and procedures DO measures knowledge transfer & deployment Six Sigma Qualtec – All Rights Reserved Respond to Efforts (Bottom Up Model) Support Improvement (Pull Model) • • • Leadership is the Primary Instrument of Change; DO is highly advisory Ownership of standards, processes and reporting Delivery accountability remains with business unit personnel DO coordinates enterprise functions such as communications Management systems measure process metrics • • • Process Owners & Members are the drivers of change & deployment is highly responsive to needs DO provides a centralized supporting function to assist project teams with practices & processes DO provides centralized training, resourcing and procurement support to BU project teams DO supports benefits reporting and knowledge management DO coordinates enterprise functions such as communications 2

Six Sigma Qualtec Improving Your Business Results Basic Elements of All Deployments All CI Programs Function at Three Levels – Strategic. The organization converts its strategy into operational goals. This is normally done using Scorecards – Governance. The organization governs its improvement efforts (see “Type of Deployment”). A primary function is project selection. – Implementation. At this level, the organization drives projects & knowledge transfer. This is the project management and problem solving level. Executive Brief: Driving Value Through Operational Excellence Six Sigma Qualtec – All Rights Reserved 3

Six Sigma Qualtec Improving Your Business Results Strategic Performance must be measured and managed, regardless of deployment model Executive Brief: Using Scorecards as part of BPM Six Sigma Qualtec – All Rights Reserved 4

Improving Your Business Results Six Sigma Qualtec Governance The role of your “Deployment Office” (DO) in Governance varies based on deployment type Support Improvement (Pull Model) Drive Effort (Push Model) • • DO Develops Business Cases Project Approval Project Prioritization Project Management Contract Management Resource Management Cost & Schedule Control • Range of CI Governance Elements Depending on Type of Deployment • • DO Facilitates the Creation of Business Cases Project Schedule Issue Tracking & Reporting CI Tools and Support Integrated Project Reporting Project Repository Project Consulting & Mentoring CI Training & Certification CI standards, methodology & processes Executive Brief: Driving Value Through Operational Excellence Article: Operational Governance – What is it Anyway? Six Sigma Qualtec – All Rights Reserved 5

Six Sigma Qualtec Improving Your Business Results Implementation The role of your “Deployment Office” (DO) in implementation varies based on deployment type Drive Effort Support Effort (Push Model) • • • Highly Prescriptive DO assumes ownership Range of CI over execution of business Implementation Elements unit projects Depending on Type of DO sets policies and Deployment procedures DO drives benefit assurance and knowledge management DO coordinates enterprise functions such as communications Six Sigma Qualtec – All Rights Reserved (Pull Model) • • • Highly Responsive Accountability remains with business unit DO provides centralized support to assist project teams DO provides centralized training to business units DO supports benefits reporting and knowledge management DO coordinates enterprise functions such as communications 6

Six Sigma Qualtec Improving Your Business Results Infrastructure Elements of All Deployments Organizational Infrastructure – Any enterprise initiative, including a Continuous Improvement Program, must consider how it interacts with enterprise level functions such as communications, finance and HR – There are specific CI attributes to all these enterprise issues Article: 10 Elements of CI Infrastructure Six Sigma Qualtec – All Rights Reserved 7 7

Six Sigma Qualtec Improving Your Business Results Driven top-down, PUSHED into the organization TRADITIONAL

Six Sigma Qualtec Improving Your Business Results Push Model Overview • History – Attributed to GE as followers emulated perception of a top down model. Failed to consider GE’s readiness for organizational change and focus on “A” side • Focuses on the knowledge to be transferred. Assumes that by providing the organization the capability, it will solve problems as encountered. • Measurement of success is in terms of number of belts trained/certified, number of projects completed, “documented” project savings and ROI on training dollars • Implementation prescribes population to receive grades of training, # of projects per belt and required savings per project. Targets building capability and then requiring output. • Strengths – Easily understood project plans. Scales quickly. The Army is taught to march and then made to march. • Challenge – Takes on its own life, irrespective of company needs. Can be rejected by business outright or thru weak compliance. Six Sigma Qualtec – All Rights Reserved 9

Six Sigma Qualtec Improving Your Business Results Change Structure is Highly Prescriptive Is responsible for coordinating a business roadmap to achieve improvement. Selects projects, executes control, and alleviates roadblocks for projects in his or her area of responsibility. Champions Is mentor, trainer, and coach of Black Belts and others in the organization. Brings the broad organization up to the required competency level. MBB LSS Black Belts 1 to 2 % Is a leader of teams executing projects. Introduces the methodology and tools to team members and the broader organization. Delivers successful small, focused departmental projects using the success strategy. LSS Green Belts 5 to 10 % LSS Yellow Belts & Other Team Members 25 to 50 % Six Sigma Qualtec – All Rights Reserved Participates on the project teams. Supports the goals of the project, typically in the context of existing responsibilities. Is expected to control processes post improvement implementation as part of job. 10

Improving Your Business Results Six Sigma Qualtec Basic Elements - Five Work Streams Phase I Workstream #1 Initiative Planning & Startup Assessment, HR, Finance, & Communications) Prepared to Direct Activities Workstream #2 Executive Training Exec’s prepared to lead program Executive & Champion Trng Reaping Program Benefits Workstream #4 TTT for all materials and the Alignment Workshop Phase 4 Phase 5 Champion BB, YB & Kaizen Project Support & Mentoring (As Req. ) BB, GB & YB (internal BB’s do PS&M) DFSS PS&M (AR) GB TTT 5 d BB TTT DFSS TTT Prepared to train future waves Deployment Planning Sessions Workstream #5 Acct Mgmt, Exec Coaching, Eval & Certification, Project Tracking Phase 3 Assessment HR & Finance Communicatio ns Awareness Workstream #3 Employee Training (BTT, Lean, YB, GB, BB, MBB and DFSS Phase 2 Attain Self Sufficiency Six Sigma Qualtec – All Rights Reserved Project Tracking 11

Six Sigma Qualtec Improving Your Business Results Push Model – Advantages & Challenges • Highly prescriptive • Easily scalable and builds capability quickly • Measures success in terms of deployment factors (projects completed, “realizable” savings per project, # belts trained & certified, etc. ) • May be perceived as another initiative and not as a fundamental change in the way things are done • Big investment in training up-front, more training centric. Project returns (ROI) are slower. Risk of burn out before any results can be realized • Can take a life of its own, becoming a cost center • Best at responsive, top down organizations with supportive and actively engaged top leadership Six Sigma Qualtec – All Rights Reserved 12

Six Sigma Qualtec Improving Your Business Results Supported top-down, PULLED and consumed by organization

Six Sigma Qualtec • • Improving Your Business Results Pull Model – Business Need & Result Driven Identify Scorecard KPI’s focused on VOC & VOB Align the business processes and establish measurement systems to uncover critical performance gaps based on those KPI’s (BPMS & CTCR) Establish process control systems and capabilities that stabilize processes and sustain improvements (BPMS) Charter projects for performance gaps which align with key business needs and have clear ROI (Governance) Drive improvements to close the gaps thru application of proven tools such as BTT, LSS & DFSS (Implementation) Projects get executed creating new projects Training is matched to the projects emerging from alignment workshops. As processes stabilize and data integrity grow, belts’ capabilities are “laddered” to meet project complexity. Article: Let Your Business Define Your Improvement Program Six Sigma Qualtec – All Rights Reserved 14 14

Improving Your Business Results Six Sigma Qualtec Deployment Organization Executive Team Business Unit Leadership Process Owners Steering Committee Shared Svcs (HR, Fin, IT) CI Leadership Process Team Member Business Unit Support Projects Six Sigma Qualtec – All Rights Reserved Governance Mat’l Dev & Maintenance Trainers & Support Training & Support Project Execution 15

Improving Your Business Results Six Sigma Qualtec Basic Elements - Five Work Streams Phase I Six Mo. Workstream #1 Initiative Planning & Startup RADD, Policy Deployment, HR, Finance, Communications) Prepared to Direct Activities Employee Training (BTT, Lean, YB, GB, BB, MBB and DFSS Reaping Program Benefits Phase 4 Six Mo. Phase 5 Six Mo. BB Upgrade Add’l 10 d (3 x) PS&M (AR) DFSS Add’l 5 to 8 d (3 x) PS&M (AR) GB TTT 5 d BB TTT 10 d DFSS TTT Executive & Director Training Exec’s prepared to lead program Workstream #3 Phase 3 Six Mo. Alignment Workshop Workstream #2 Executive Training Phase 2 Six Mo. Foundations of Continuous Improvement Yellow Belt Project Support & Mentoring GB Upgrade Add’l Awareness Workstream #4 TTT for all materials and the Alignment Workshop Prepared to train future waves Workstream #5 Acct Mgmt, Exec Coaching, Eval & Certification, Project Tracking Attain Self Sufficiency BPMS & Project Chartering Alignment WS TTT Exec Trng Director PE & Kaizen TTT Trng YB TTT BPMS & PC Consulting Project Tracking HR Finance Communication Plans Six Sigma Qualtec – All Rights Reserved 16

Improving Your Business Results Six Sigma Qualtec Training is a Function of… • Projects • Process Stability • Availability of Metrics Use the identification of projects and natural cascading effect of projects, which produce opportunities along the way to resolution, to drive training Let Your Business Define Your Improvement Program Six Sigma Qualtec – All Rights Reserved 17

Six Sigma Qualtec Improving Your Business Results Additional Supporting Articles Article: BPM and Lean – For Many Service Oriented Organizations, Enough to Get Big Improvement Results Article: Lean Paves the Road for Six Sigma…especially in Service Organizations Article: Lean or Six Sigma – That is the Question … Article: Getting Results with Lean is not just about Lean Tools Six Sigma Qualtec – All Rights Reserved 18

Six Sigma Qualtec Improving Your Business Results Decision Variables WHICH MODEL IS RIGHT FOR

Six Sigma Qualtec Improving Your Business Results Organizational Readiness • To help design CI programs, SSQ utilizes a proprietary Organizational Deployment Readiness model that looks at 5 different dimensions of readiness: – Many CI deployments, over time, falter, stall or fail – The business process improvement methodologies have been proven to work, so what’s the reason for sub-performing CO programs? – Many times, deployment failures can be traced to a mismatch between the Organizations Readiness for change and which methodologies are being deployed – In our experience there are 5 main “Dimensions of Readiness” that impact CI program design: See Appendix B for Detail of Model Six Sigma Qualtec – All Rights Reserved Article: Let Your Business Define Your Improvement Program 20

Improving Your Business Results Process Maturity Which Model is Right? Objectivity Leadership PUll (Support) Tools Change Push Pull Six Sigma Qualtec See Appendix B for Detail of Model Push Model requires mature processes, ready & knowledgeable organization, and driven & supportive leadership. If not present, the Push Model’s effectiveness is weakened as you require the Pull Model’s greater focus on strategic linkage and program governance. Pull Model will work at either end of the spectrum but always requires significant investment in governance which can be somewhat avoided when the circumstances allow for the Push Model. Six Sigma Qualtec – All Rights Reserved 21

Improving Your Business Results Six Sigma Qualtec (SSQ) www. ssqi. com blog. ssqi. com Contact: John Lopez-Ona Tel: 609 -356 -1450 Email: jlopez-ona@ssqi. com Six Sigma Qualtec – All Rights Reserved 22