Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 1 CONTINUOUS IMPROVEMENT PROGRAM BASICS AND ALTERNATIVES There is no single “right” way …

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 2 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 Respond to Efforts (Bottom Up Model) 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 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

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 3 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

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

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 5 Governance Drive Effort (Push Model) DO Develops Business Cases Project Approval Project Prioritization Project Management Contract Management Resource Management Cost & Schedule Control Support Improvement (Pull Model) 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 Range of CI Governance Elements Depending on Type of Deployment The role of your “Deployment Office” (DO) in Governance varies based on deployment type Executive Brief: Driving Value Through Operational Excellence Article: Operational Governance – What is it Anyway?

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 6 Implementation Drive Effort (Push Model) Highly Prescriptive DO assumes ownership over execution of business unit projects DO sets policies and procedures DO drives benefit assurance and knowledge management DO coordinates enterprise functions such as communications Support Effort (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 Range of CI Implementation Elements Depending on Type of Deployment The role of your “Deployment Office” (DO) in implementation varies based on deployment type

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 7 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 7 Article: 10 Elements of CI Infrastructure

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 8 TRADITIONAL PUSH MODEL Driven top-down, PUSHED into the organization

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 9 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.

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 10 Change Structure is Highly Prescriptive Is mentor, trainer, and coach of Black Belts and others in the organization. Brings the broad organization up to the required competency level. 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. 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. MBB LSS Black Belts Champions LSS Green Belts LSS Yellow Belts & Other Team Members 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. 1 to 2 % 5 to 10 % 25 to 50 %

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

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 12 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

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 13 SSQ’S PULL MODEL Supported top-down, PULLED and consumed by organization in a right-fit manner

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 14 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

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

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

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 17 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

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 18 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

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 19 WHICH MODEL IS RIGHT FOR YOUR ORGANIZATION? Decision Variables

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 20 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? –M any 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: Article: Let Your Business Define Your Improvement Program See Appendix B for Detail of Model

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 21 Which Model is Right? PUll Process Maturity Objectivity Leadership (Support) ToolsChange 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. Pull Push See Appendix B for Detail of Model

Improving Your Business Results Six Sigma Qualtec Six Sigma Qualtec Six Sigma Qualtec – All Rights Reserved 22 Six Sigma Qualtec (SSQ) blog.ssqi.com Contact: John Lopez-Ona Tel: