1. © 2001 Six Sigma Academy © 2003 Six Sigma Academy1 Champion Workshop Key Concepts

2. © 2002-2003 Six Sigma Academy 2 Cash Flow Return on Equity Customer Satisfaction Asset Utilization Process Capability VARIABILITY FMEA CTQ Multivariate Statistics Mistake Proofing Reliability SPC Process Mapping DOE C&E Matrix Problem Solving Systems Thinking WASTE Visual Controls Linkages & Flow Testing for Value Value Stream Mapping 5S Takt Standardize Unpredictable Demand Balanced Work JIT GROWTH Supplier Capability QFD Design From Ground Up Predictive Modeling Product Development TRIZ The Breakthrough Strategy

3. © 2002-2003 Six Sigma Academy 3 Solve Difficult Business Problems for the Last Time… Using the Appropriate Tools Process Capability DMAIC FMEA CTQ Multivariate Statistics Mistake Proofing Reliability SPC Process Mapping DOE C&E Matrix Problem Solving Systems Thinking LEAN Visual Controls Linkages & Flow Testing for Value Value Stream Mapping 5S Takt Standardize Unpredictable Demand Balanced Work JITDFSS Supplier Capability QFD Design From Ground Up Predictive Modeling Product Development TRIZ Cash Flow Return on Equity Customer Satisfaction Asset Utilization The Breakthrough Strategy

4. © 2002-2003 Six Sigma Academy 4 The Goal: Breakthrough Performance focused on things that matter Time Defects and Waste Six Sigma Breakthrough Current State Deliver Results Improvement Period

5. © 2002-2003 Six Sigma Academy 5 What Do We Know About Our Process? We don't know what we don't know We can't act on what we don't know We won't know until we search We won't search for what we don't question We don't question what we don't measure Hence, we just don't know – Mikel Harry Founder, Six Sigma Academy

6. © 2002-2003 Six Sigma Academy 6 Process Focus of Six Sigma Inputs (X 1, X 2.. X n ) Independent Cause Control Output Dependent on Input Effect Monitor Process Y = f(x) X Y Determining the critical X’s & controlling the X’s to guarantee the Y’s

7. © 2002-2003 Six Sigma Academy 7 Delivering Results Characterization Optimization Phase 1: Measure Phase 2: Analyze Phase 3: Improve Phase 4: Control determination of improvement opportunities Process Characterization is concerned with the identification and benchmarking of key process characteristics, and the and goals. Process Optimization is aimed at identifying, improving and controlling the key process variables which exert undesirable influence over the key process characteristics. Phase 0: Define/Lean Phase 0: Define/Lean Define the problem and agree on the objective. Define the metrics. Map Process. Validate measurement systems. Collect relevant data and begin basic analysis Identify the few key factors which are directly influencing the problem. Determine optimum values for the few key factors which resolve the problem. Determine long term control measures which will ensure that improvements are sustained. Six Sigma Project Progression... DMAIC

8. © 2002-2003 Six Sigma Academy 8 Value Performance Satisfiers Satisfier – Non-Smoking Room Available Linear Linear -- $10 Discount Delighters Delighter – Bellman greets by name, Correct Pillow, Shelled pistachio’s Voice of the Customer Kano Analysis…One of Many Tools

9. © 2002-2003 Six Sigma Academy 9 Entitlement... Doing the best we have done – EVERYTIME  The focus should be to shift the overall performance to the Entitlement level. This drives dramatic short-term improvements in cost and quality with minimal investment in technology.  Only after the Entitlement level is achieved should an investment be made to redesign / reengineer the systems or infrastructure. The optimum level that a process currently performs is the Entitlement. This can be replicated once the variables are truly understood. Output Variation Days 1 5.5 11 18 38 Mean Entitlement Performance Shift Delivery of client Orders Upper Specification Limit Avoid Capital Investment Until Entitlement is Reached

10. © 2002-2003 Six Sigma Academy 10 Variation... Results in Non Predictable Processes Average vs. Variation Average tells little about customer experience. To drive dramatic improvements in performance, the variance in a process must first be minimized Days 10 40 80 Output Variation Mean Example #1 Example #2 Product Delivery Process. Customers Remember the Extremes (Variation), not the Average

11. © 2002-2003 Six Sigma Academy 11 Aspects of Control AMOUNT OF CONTROL Verbal InstructionsWritten InstructionsVisual ManagementStatistical Process Control Poka - Yoke (Mistake Proofing) Design for Six Sigma Amount of Effort of Process Owner Automation Desired Direction of Control Systemic Change

12. © 2002-2003 Six Sigma Academy 12 Definition of a Black Belt “Someone, who with their team, solves a difficult business problem for the last time.” Control …. The Key Differentiator of Six Sigma

13. © 2002-2003 Six Sigma Academy 13 A Critical “Unintended” Consequence Leadership Development