Six_Sigma[1]

1SixSigmaWhatItisHowItAffectsHumanResourcesRonaldD.SneeK.W.TunnellConsultingNovember13,20012WhatisSixSigma?•Measureofhowwellaprocessisperforming-SixSigmaprocessproduces3.4defectspermillionopportunities-Mostcompaniesareat3-4sigmalevel•Philosophyofreducingdefectssowecanimprovecustomersatisfactionandreducecosts•BusinessStrategythatincreasesprocessperformanceresultinginenhancedcustomersatisfactionandimprovedbottomline($$).3WhatisSixSigma?•Improvement•Breakthrough•Systematic,FocusedApproach•RightProjects-LinkedtoBusinessGoals•RightPeople-Selected&Trained•ProjectManagement-ManagementReviews•SustainingGains-IdentifyNewProjects•RightResults-Process&Financial($$)•ProcessThinking•ProcessVariation•Facts,Figures,Data•Define,Measure,Analyze,Improve,Control•8KeyTools-LinkedandSequenced•StatisticalTools•Minitab•CriticalFewVariablesINITIATIVEMETHODS&TOOLS4ROLESOFLEADERSManagementTeamProjectChampionMasterBlackBeltGreenBeltBlackBeltandTeamFunctionalGroupsHR,Finance,ITEngg,QA,etc.5SixSigmaImprovementStrategy•Phase0:ProcessDefinition•PhaseI:ProcessMeasurement•PhaseII:ProcessAnalysis•PhaseIII:ProcessImprovement•PhaseIV:ProcessControl68KeySixSigmaTools•MapsandMetrics•CauseandEffectMatrix•GageR&RStudy•CapabilityAnalysis•FailureModeandEffectsAnalysis•Multi-VariAnalysis•DesignofExperiments•ControlPlansincludingStatisticalProcessControlAdvancedtoolsareusedasneededtospeedupimprovement7SomeManufacturingBlackBeltProjects•Increaseprocessyield$300k•Increaseprocesscapacity$400k•Increasedryerthroughput$130k•Reduceprocessdowntimeandscrap$320k•ReducecausticuseofProcessZ$2000k•Materialloss:Reducescrap&increaseyield$150k•Reducewetmillingoperationscosts$300k8TopicsofNon-ManufacturingProjects•Billing•EnergyReduction•Engineering•Environmental•Finance&Accounting•HumanResources•InformationTechnology•InternalAudits•InventoryReduction•Legal•Logistics-Transportation•CustomerService•Maintenance•PlanningandScheduling•ProductDesign•Purchasing•QCLab•Safety•Sales•Shipping9ProjectsinHumanResources•Reducecycletimeonhiringprocess•Increase“hitrate”onjobapplicants•Employeeturnoverreduction•Overtimereduction•Reducingstaffingshortages•CycleTimeReductionforLong-TermDisabilityApplicationProcessLongTermDisabilityApplicationProcessSiteDeterminesConditionPreventsEmployeefromReturningtoWorkIndependentMedicalEvaluationEmployeeSiteMedicalSiteHumanResourcesMedicalAuthorizationMedicalEvaluationReportMedicalAuthorizationCaseDeterminationLetterEnterTotal&PermanentCodeBenefitsSupplierReviewProcessApproval/DenialEmployeeRequestsSitetoInitiateanApplicationAlternativeSupportingMedicalInfoTransferrableSkillsAnalysis&LaborMarketSurveyWeeklyDisabilityClaimNotificationProcess11Improvements•SupplierProcesses-Renegotiatesub-contractors’terms-Newcasemanagementreporting-Reviewofcaseturn-aroundtimeperformance•DupontProcesses-Greateruseofemailandintranet-Casetrackingandreportingdatabaseadded-UseofperformancemetricsatSBUandsites-Ongoingcommunication,trainingandeducationBenefits•AverageCycleTimereduced50-70%•Processperformancenowmeetingcustomerrequirementsofdecisionsin45days.•Hardsavingsof$192,000.-Reductioninextendedshort-termdisabilitypayments.-70%reductioninIndependentMedicalEvaluationfeespaidtoSupplier.-ReductionofongoingadministrativefeepaidtoSupplier.13RecognitionandRewardforSixSigma14RecognitionVehicles-CompanyT•Writtenfeedbackviae-mail•Writtenfeedbackviarecognitionboard•Verbalfeedbackvia-Voicemail-One-on-one-Shiftmeetings•Companytotems•Giftcertificates/luncheons/coffee/donuts•Annualrecognitionprogram•Quizmoney•Performanceevaluation•Customertrips•Careerplans15RecognitionandRewardatGeneralElectric“Aswitheveryinitiative,webackedSixSigmaupwithourrewardssystem”JackWelch,CEO•40%ofannualbonusrelatedtoSixSigmaactivities•StockoptiongrantsforBlackBelts•GreenBeltcertificationrequiredforpromotion“WithSixSigmapermeatingmuchofwhatwedo,itwillbeunthinkabletohire,promoteortoleratethosewhocannot,orwillnot,committothiswayofwork”JackWelch,CEOGeneralElectricUSATODAY2/27/9816BlackBeltCompensationatCompanyZ•BasePay-Potentialincreaseattimeofselection-Retaincurrentsalarygrade-Commonjobcodeforfull-timeparticipants-Normalgroupperformancereviewandmeritpay•IncentiveCompensation-SpecialplanforBlackBelts-Targetawardat15%ofbasepay-Performanceratingon0-150%ofscale-Measuredagainstkeyprojectobjectives-ParticipationendsatendofBlackBeltassignment17SixSigmaRecognitionProgramCompanyK18BlackBeltRecognition•Selection-SixSigmaPin•Certification-$5,000CertificationBonus-SixSigmaDiploma/Plaque•ProjectCompletionBonusAwards-$500to$5,000incashorstockoptionsavailableGrantedbyProjectChampionApprovedbySixSigmaRecognitionCommittee19BlackBeltRecognition(cont.)•SixSigmaSpiritAwards-MadebyProjectChampion-Recognizesandrewardseffortsandachievementsduringprojectswithindividualandteamawardstheater/movietickets,dinners,t-shirts,spotcashbonuses,etc.•SixSigmaSuccessPlaque-AwardedatcompletionoffirstprojectEngravedplacardforprojectPlaquedesignedtoaddmultipleprojectsascompleted20CompanyK-RecognitionProgram(Cont’d)•GreenBeltRecognition-Simil