2. Resources and Aspects of Six-Sigma

3. Programme ENBIS and Pro-ENBIS ISRU’s support for Six-Sigma The Words of Soren Bisgaard The Words of Ron Kennet The Main Speakers Irena Ograjensek - Opening the Toolbox! Tony Greenfield - Statistical Methods in Business and Industry

4. Dave Stewardson - ISRU Soren Bisgaard - University of Amsterdam Ron Kennet - KPA Israel

5. ENBIS European Network for Business and Industrial Statistics www.enbis.org

6. ENBIS Big supporters of Six-Sigma throughout Europe

7. - To promote the widespread use of applied statistical methods in European business and industry, - Membership - statistical practitioners from business and industry, - Multidisciplinary problem solving - To facilitate the rapid transfer of statistical knowhow - Web-based Vision

8. -Design of experiments -Reliability and safety -Data mining / warehousing -General statistical modelling Working groups -Process modelling and control -Quality improvement -Statistical consultancy -bENBIS (Belgium) -nENBIS (Netherlands) -iENBIS (Israel) Local networks Organisation

9. -No membership fee (for the time being) -565 members (September, 2002) Organisation

10. Membership benefits ENBIS offers : -Network facilities -Conferences -Courses -Thematic network Pro-ENBIS

11. www.enbis.org

12. Aims include: Start a European Training Network Found European Measurement System Audit Draft new European Journal - web-based Inorgorate a European Business-to-Business Mentoring Scheme Publish a ‘State-of-the-Art’ report on the use of Industrial Statistics in Europe Access further funding to promote ENBIS Pro-ENBIS

13. Training Network now has more than 50 participants Push to help implement Six-Sigma throughout Europe - this is a massive resource. Including the non-EC states! Pro-ENBIS

14. Planned ‘Workshops’ for 2003: Sardinia alongside DEINDE conference on Designed experiments - February Maastrict (Netherlands) alongside ESREL reliability conference - June Currently planning UK based Workshop Pro-ENBIS

15. Siemens Electric Heating AS Siemens Electric Heating AS Bratsbergvegan 5 N-7493 TRONDHEIM Norway 21/6/2002 Tel No +47 73 95 90 00 Pro-ENBIS industrial visits

16. Jon Tyssedal, tyssedal@math.ntnu.no Professor of Statistics, NTNU Expert in Statistics Maria Fernanda Ramalhoto, framalhoto@math.ist.utl.pt Professor of Statistics,Instituto Superior Tecnico, Lisbon Expert in Reliability and Quality Improvement Ron Kenett, ron@kpa.co.il International Management Consultant, CEO KPA Ltd. Expert in Industrial Statistics and Quality Management ENBIS team

17. Six-Sigma and Reliability For Nestle Dave Stewardson - ISRU with Froydis Berke - Matforsk Norway Soren Bisgaard - USA Poul Thyregod - Denmark Bo Bergman - Sweden

18. ISRU’s Support for Six-Sigma

19. Hands-on Support for Champions Black- Belts and Master Blackbelts Full Six-Sigma programme from October - Black Belt - Green Belt - Yellow Belt - training and support This is VERY market / customer driven Plus - access to on-line support

20. Keys to Success Mark II 1. Need to overcome demands on peoples time 2. Need to overcome reluctance to try new methods - fear of failure 3. Must be allowed to discover that the key methods are self correcting! In other words - you can’t really fail at all

21. ISRU - On-Line Modules

22. ISRU’s Courses ISRU have 3 certified courses available on Blackboard: DoE(Design of Experiments) MQT(Modern Quality Tools) SPC(Statistical Process Control)

23. Soren Bisgaard Leading Industrial Statistician Extract from Presentation

24. The “Success” of Change Programs? “Performance improvement efforts … have as much impact on operational and financial results as a ceremonial rain dance has on the weather” Schaffer and Thomson, Harvard Business Review (1992)

25. Change Management: Two Alternative Approaches Activity Based Programs Result Oriented Programs Change Management Reference: Schaffer and Thomson, HBR, Jan-Feb. 1992

26. Activity Centered Programs Activity Centered Programs: The pursuit of activities that sound good, but contribute little to the bottom line Assumption: If we carry out enough of the “right” activities, performance improvements will follow –This many people have been trained –This many companies have been certified Bias Towards Orthodoxy: Weak or no empirical evidence to assess the relationship between efforts and results

27. An Alternative: Result-Driven Improvement Programs Result-Driven Programs: Focus on achieving specific, measurable, operational improvements within a few months Examples of specific measurable goals: –Increase yield –Reduce delivery time –Increase inventory turns –Improved customer satisfaction –Reduce product development time

28. Result Oriented Programs: Project based Experimental Guided by empirical evidence Measurable results Easier to assess cause and effect Cascading strategy

29. Why Transformation Efforts Fail! John Kotter, Professor, Harvard Business School Leading scholar on Change Management Lists 8 common errors in managing change, two of which are: Not establishing a sense of urgency Not systematically planning for and creating short term wins

30. Six Sigma Demystified* –Alignment of customers, strategy, process and people –Significant measurable business results –Large scale deployment of advanced quality and statistical tools –Data based, quantitative *Adapted from Zinkgraf (1999), Sigma Breakthrough Technologies Inc., Austin, TX.

31. Keys to Success* Set clear expectations for results Measure the progress (metrics) Manage for results *Adapted from Zinkgraf (1999), Sigma Breakthrough Technologies Inc., Austin, TX.

32. Six Sigma The precise definition of Six Sigma is not important; the content of the program is A disciplined quantitative approach for improvement of defined metrics Can be applied to all business processes, manufacturing, finance and services

33. Focus of Six Sigma* Accelerating fast breakthrough performance Significant financial results in 4-8 months Ensuring Six Sigma is an extension of the Corporate culture, not the program of the month Results first, then culture change! * Adapted from Zinkgraf (1999), Sigma Breakthrough Technologies Inc., Austin, TX.

34. Six Sigma: Reasons for Success The Success at Motorola, GE and AlliedSignal has been attributed to: –Strong leadership (Jack Welch, Larry Bossidy etc. personally involved) –Initial focus on operations –Aggressive project selection (potential savings in cost of poor quality > $50,000/year) –Training the right people

35. Ron Kennet Rising Industrial Statistician Extract from Presentation

36. “the most important initiative GE has ever undertaken”. Jack Welch Chief Executive Officer General Electric In 1995 mandated each GE employee to work towards achieving 6 sigma The average process at GE was 3 sigma in 1995 In 1997 the average reached 3.5 sigma GE’s goal is to reach 6 sigma by 2001 Investments in 6 sigma training and projects reached 45MUS$ in 1998, profits increased by 1.2BUS$ General Electric

37. “At Motorola we use statistical methods daily throughout all of our disciplines to synthesize an abundance of data to derive concrete actions…. How has the use of statistical methods within Motorola Six Sigma initiative, across disciplines, contributed to our growth? Over the past decade we have reduced in-process defects by over 300 fold, which has resulted in a cumulative manufacturing cost savings of over 11 billion dollars”*. Robert W. Galvin Chairman of the Executive Committee Motorola, Inc. MOTOROLA *From the forward to MODERN INDUSTRIAL STATISTICS by Kenett and Zacks, Duxbury, 1998

38. KnowledgeManagement The Six Sigma Initiative integrates these efforts

39. How is Six Sigma deployed? Six Sigma is deployed via project teams launched and supported by Black Belts. Projects can be of different size and duration. We define projects as—a structured and systematic approach to achieving Six Sigma levels of improvement. Depending on the scope of the project, they can be defined as: Business Process Projects – large-scale improvement of a business process that extends across an organization. For example, order taking. Six Sigma Quality Improvement Project – aimed at solving chronic problems crossing multiple functions of an organization. Work Team Project – a project within one department.

40. Six Sigma project roadmap DEFINE MEASURE ANALYZE IMPROVE CONTROL

41. Black Belt training program 6 sigma principles Quality Improvement Quality by Design Quality Control Teamwork Effective presentations QFD/VOC Statistical thinking Process mapping Barriers to breakthroughs JMP, MINITAB….. Gage R&R SPC SPC Strategy Risk Management FMEA Statistical Inference Design Of Experiments DOE Strategy Bootstrapping Robust Designs System Thinking

42. Barrier #1: Engineers and managers are not interested in mathematical statistics Barrier #2: Statisticians have problems communicating with managers and engineers Barrier #3: Non-statisticians experience “statistical anxiety” which has to be minimized before learning can take place Barrier # 4: Statistical methods need to be matched to management style and organizational culture Barriers to implementation

43. Technical Skills Soft Skills Statisticians Master Black Belts Black Belts Quality Improvement Facilitators BB MBB

44. Leadership Group Processes, internal and external customers Team 1Team 2 Team 3 BB BB BB MBB The 6 Sigma Project Structure KPA ISRU ENBIS

45. The right way! Plan for “quick wins” –Find good initial projects - fast wins Establish resource structure –Make sure you know where it is Publicise success –Often and continually - blow that trumpet Embed the skills –Everyone reports success

46. Pro-Enbis All joint authors - presenters - are members of: Pro-Enbis and ENBIS. This presentation is supported by Pro-Enbis a Thematic Network funded under the ‘Growth’ programme of the European Commission’s 5th Framework research programme - contract number G6RT-CT-2001-05059