November 2008 Integrated Business Leader (IBL) Webinar

1 Six Sigma codified Six Sigma is the standard Merging of Lean & Six Sigma The Next Generation: SPM & beyond Lean Six Sigma Evolution New opportunities: Availability of information (financial, operating data) More autonomy and leverage at lower levels in the organization Well developed frameworks and tools Existing capabilities and skills enable jump-start to revitalize and customize process improvement efforts New challenges: Existing operations are leaner – firms can’t support initiatives with armies Less top-down command and control from the C-suite Need results faster Risk-averse management Customers demanding better products, for less, faster…you only get one shot!

2 “We couldn’t deploy Six Sigma the same way today as we did at GE in the 90’s. Business environments have changed significantly since then.” – Jack Welch January, 2008 Lean Six Sigma Evolution Process and quality improvement has evolved considerably since the early deployments at GE.

3 Lean Six Sigma Black Belts / Green Belts Integrated Business Leaders Interpreting business strategy, Analyzing business performance/results Aligning Lean Six Sigma projects/resources to highest-priority business needs Effectively managing Belts/projects Proven, effective problem solving methodology Working and solving complex business problems “… for the last time …” Business Strategy Business Results The Role Of Integrated Business Leaders Efficient Use of LSS As A Proven, Effective Problem Solving Methodology To Solve Your Businesses Priority Problems Efficient Use of LSS As A Proven, Effective Problem Solving Methodology To Solve Your Businesses Priority Problems

4 What Is IBL? A three-day workshop with a balanced blend of training and hands-on application to provide participants with broader business acumen aligned to modern process improvement methods. It provides a combination of knowledge and methods that help ensure corporate performance goals are properly measured and achieved while providing a significant return on investment. It is scaleable to the size of the program.

5 Why IBL? As a businesses initiate transformation through Lean Six Sigma, there is a need for a strategic framework to quickly assess the opportunities - the gap between the baseline and goals… IBL There is a need for practical understanding of the key business drivers that CEOs care about, allowing you to decipher Financial Statements and conduct high-level Business Analysis… IBL To ensure a clear understanding of the Lean Six Sigma roadmap; and an actionable plan for identifying, scoping, and chartering process improvement projects and selecting the right people to execute those projects… IBL To shorten project closure cycle time with tangible benefits – linked to the bottom line… IBL Get all the appropriate stakeholders, leaders, and manager on board. … IBL

6 Project Benefits Project Cycle Time Lean Sigma Projects Benefits and Cycle IBL vs. Traditional Approach Why IBL?

7 Who Should Attend IBL Course? Stake Holders / Executives Leaders / Managers Deployment/Project Champions

8 IBL Intro IBL Intro Financial Acumen Financial Acumen Lean- Sigma Tools Results & Benefits Results & Benefits IBL Workshop Topics The specifics for each topic are provided in the following slides. Pre-Workshop Pre-Workshop ChangeMgmt. ChangeMgmt. Post-Workshop Post-Workshop Project Ident, Selection, Scope, Definition

9 Pre-Workshop What

10 How How to Apply IBL?  Financials Cycle The financial reports present the past performance; which may be used to identify opportunities for improvement; and to an extent, may help predict the future of the firm based on the improvements. Financial Statements Financial Analysis Predict/Measure Benefits SPM/BRM & Improvements Start

11 Financial Acumen Financial Basics & Definitions Business Velocity Financial Statements -Income Statement -Balance Sheet -Statement of Cash Flow Project Selection-Definition & BB Selection Class Exercise

12 The major portion of the BRM is dedicated to depicting the business units and functions which contribute to the creation of customer value BRM Analysis

13 BRM & VSM Development Quick Win Projects* Six Sigma Projects DFSS Projects Collaborative Project Selection Execution of Improvement Projects Lean Projects Step 1Step 2Step 3 Assessment of existing process performance with financial impact analysis Collaborative validation of existing process performance and on improvement opportunities Well-defined improvement projects are conducted with financial and quality benefits realized Types of Projects * Quick Win Projects are often executed as part Step 2 leading to the realization of immediate benefits Project Identification-Definition

14 Improvement Tools (Lean Sigma) DMAIC 12-Steps BTS Business and Process/Product Metrics Overview of (Qualitative & Quantitative Tools) -Understanding and Evaluating Process Variation -Measurement and Capability Analyses -Risk Assessment and Control Plan Class Exercise

15 Results and Benefits Results and Short Term/Long Term Benefits Leverage Class Exercise

16 Change Management Project Team Personalities Leading Change Class Exercise

17 Post-Workshop What

18 Wrap-Up Questions? Next Steps Contacts

19 The following are trademarks and service marks of Six Sigma Academy International, LLC: Breakthrough Lean ®, Breakthrough Strategy ®, Breakthrough Value Services ®, Breakthrough Change Strategy SM, Breakthrough Design SM, Breakthrough Diagnosis SM, Breakthrough Execution SM, Breakthrough Sigma Lean SM, Breakthrough Six Sigma SM, Breakthrough Software Design SM, FASTART SM, Six Sigma Gold Belt TM, SOLVING YOUR BUSINESS PROBLEMS FOR THE LAST TIME SM. Six Sigma is a federally registered trademark of Motorola, Inc. MINITAB is a federally registered trademark of Minitab, Inc. SigmaFlow is a federally registered trademark of Compass Partners, Inc. VarTran is a federally registered trademark of Taylor Enterprises. Six Sigma Academy International, LLC 630 Fifth Ave., Suite 1900 New York, NY Tel. (212)