1、030602MVA_he_ZZT_7860GE has become the poster child of the Six Sigma movement 43216810152235501987 889092949596989901 2002Cumulative Fortune 500 program launchesEstimatesEra 1(1987)QualityEra 2(1994)Financial performanceEra 3(1996)Performance Improvement Umbrella Era 4(2000)Strategic issuesWhy did G
2、E adopt Six Sigma?Intense pressure on margins and no room for price increases premium on productivityMediocre quality and disappointed customersBillions of dollars lost in cost of poor qualityReenergize GEs productivity machineEngine for cultural transformationEvolution of Six SigmaGESource:McKinsey
3、030602MVA_he_ZZT_7861Delivery exampleSix Sigma has its roots in statistical process controlBeforeAverage delivery time:45 minutes55 minutes(Commitment to customer)Before:2(i.e.,30.85%delivered outside target times)After:6(i.e.,only 0.0003%delivered outside target times)35 minutesSource:McKinseyCriti
4、cal-to-quality metric:on-time delivery7 articles lost per hour1.7 incorrect operations per week1 short or long landing every 5 years68 wrong prescriptions per year99.99966%Good(6 Sigma)99%Good(3.8 Sigma)Other process capability examples20,000 lost articles of mail per hour5,000 incorrect surgical op
5、erations per week2 short or long landings at most major airports each day200,000 wrong drug prescriptions each yearAfter20,000 lost articles of mail per hour5,000 incorrect surgical operations per week2 short or long landings at most major airports each day200,000 wrong drug prescriptions each year0
6、30602MVA_he_ZZT_7862The Six Sigma program has three key elementsBrainstormingAffinity diagramsMulti-votingHypothesis testingPareto chartsFishboneProcess mappingRoot cause problem solvingMaster Black Belts(full time)Support key line executivesResponsible for project selection,training/coaching of Bla
7、ck Belts and reporting progressBlack Belts(full time)Lead improvement projects through DMAIC cycleReceive 4 weeks of up-front trainingGreen belts(part time)Provide Black Belts with support to get projects doneReceive less intensive trainingStatistically-focused problem solving toolsDedicated and cer
8、tified resources3.Focuses on reduction in variation of key metrics2.Drives measurement and data-driven analysis of metrics that are critical to customers1.Creates standardized,disciplined problem solving approach used across companyAll Six Sigma improvement efforts optimize processes by reducing var
9、iationDefine the problemMeasure the problemDefineMeasureAnalyzeImproveControl Analyze and identify the gapIdentify and implement solutionsTrack and review progressDMAICPrescriptive Problem Solving Process DMAICDesign of experimentVoice of the customerQuality function deploymentANOVAEtc.030602MVA_he_
10、ZZT_7863Improvement infrastructure GEs Six Sigma success is based on a thoughtful understanding of the drivers of large-scale change1243Set aspirationsArchitect programImplement changeBuild momentumEffective,well-orchestrated launchTrain top leaders and set aspirationsArchitect program and begin mas
11、sive communication drive Select and deploy high-potential resourcesExecute high profile projects and make teams heroesRelentlessly communicate successes and changes to comeGE used several core elements of successful transformation programsOrganizational enablersLeadership Intense involvement of top
12、and line leadershipProgram designRobust roadmap and processesPerformance management Goals baked into budgets at all levels Dedicated resourcesBest resources with clear career pathsTalent/skill development Multi-level training Program supportRuthless project manage-mentProblem solving Disciplined use
13、 of DMAIC and tools199619961996-971997Source:McKinsey030602MVA_he_ZZT_7864Six Sigma projects follow a disciplined approach to root-cause problem solving Clearly definethe problem,the goal,and the processBaseline and further refine the problem Analyze to identify the vital few root causes Select solu
14、-tions;test on pilot;imple-ment full scale Control the process to sustain gains Define Measure Analyze Improve Control What is the problem?Goal?Customers?Process to improve?What is the ex-tent of the pro-blem?Efficiency EffectivenessWhat data do we need to get to the root causes?Range of optionsSolu
15、tionsBest pragmatic solutions Full range of solutionsThe select fewThe optimal and pragmatic solu-tionSmall scale pilotFull scale implementationTactical level Process standardization Process through-putStrategic level Disciplined use of business pro-cess manage-ment by steering committeeKey elements
16、Deliver-ablesClarity on what is in scope and what is out of scopeIn-depth under-standing of how big the problem is and data to get to the bottom of itData driven rigorous con-clusions on the vital root causes for the problemFully imple-mented solu-tion based on lessons from pilotStable processSystem
17、 to keep it stableFully integrated into business goalsExecutives fully involved Source:McKinseyDMAIC 030602MVA_he_ZZT_7865Six Sigma has had high impact on service businesses Problem definitionReduce accounts receivables tobest-practice levels in 24 weeks Organizational enablers and improvement infra
18、structureCFO sponsor with division heads present at project launchCFO and division heads attend key status reviewsBlack Belt coach and guide but led by finance managerProject tracked by Six Sigma staff and through steering committee meetingsProblem solving methodologyand toolsDMAICTools used on proj
19、ect brain-storming,fishbone,pareto,histo-grams,scatter plots,check sheets,control charts is-is not,force field analysis,simple FMEA,poke-yokeResultsReduced AR by 90%for annual benefits exceeding USD 4 millionSample tools used Fishbone defective invoice ManMeasure-mentMachine MethodMaterialEnvironmen
20、tDefective invoiceTraining Metrics No check against POPareto RecommendationsControl chartPOT&CDeli-veryOtherImprove invoice quality by following actions Mandatory check of PO against invoice 5-day training of personnel by experienced gurus with best practices One invoice per PO with itemized list of
21、 all itemsImplement segment based control system for customers.Set target goal into annual MBO to ensure accountability Set guidelines for action,red,yellow,green flags for escalating actions Observe strict$penalties for late payment Monitore control chart of key metrics Days(USD delin-quency days)=
22、USD invoice x days lateUpper control limitUpper spec.limitLower spec.limitLower control limit Special causesSource:McKinseyPROJECT REDUCE DELINQUENT ACCOUNTS RECEIVABLES 030602MVA_he_ZZT_7866Green beltBlack beltExecutive sponsor/division managerPart-time-position leading Six Sigma.Continues fulfilli
23、ng current job responsibilities Trained in Six Sigma tools,provides functional/divisional knowledge and expertiseMentored by a black belt Communicates Six Sigma methodology to others in the organizationFull-time dedication to Six Sigma;Leads projects and shares responsibility for deliverablesApplies
24、 right Six Sigma methodology and tools to ensure quality of process Escalate issues to managementTrains and coaches team membersProposes Six Sigma improvement projects and responsible for deliverablesResolves issues Promotes Six Sigma strategy and methodologyUnderstands Six Sigma strategy,discipline
25、 and toolsSix Sigma roles Source:McKinsey030602MVA_he_ZZT_7867Although the impact from Six Sigma has been significant for GE.00.40.81.21.619969798992000Percent of salesSix Sigma net financial impact*USD mGE total revenuesUSD bn-20550760 1,490 2,0007990100112130Single performance improvement themeCus
26、tomer perspective Common languageFact based problem solvingEnhanced capabilitiesPowerful engine for cultural changeFacilitated success of other initiatives Hard dollar benefits for GESoft benefits for GESource:McKinsey030602MVA_he_ZZT_7868WeaknessesProject-centricQuick wins remove focus on strategic
27、 movesContent neutral process prescriptive Needs strong organizational element to succeed Disconnects possible between quality and savings.Six Sigma is not a panacea for all ills it has its own set of strengths and weaknesses Source:McKinseyLean can complement Six Sigma to overcome many of its major
28、 weaknesses StrengthsCommon languageCustomer focusBottom-line resultsReal line management involvementFact-based problem solving methodologyComprehensive set of toolsBuilds new generation of leadersTakes capability of organization to next levelStrong infrastructure helps other initiatives030602MVA_he
29、_ZZT_7869More over,few companies are able to use Six Sigma effectively due to a small number of root causes Source:McKinseyLack of real involvement by top and line management Six Sigma is a program run by a staff organizationRewards and incentives are not aligned with Six Sigma program no breakdown
30、and assignment of targets for line management with accountability tied to incentivesStaffing Six Sigma with deadwood instead of top talentIneffective project selection systemIneffective project management with no drop dead dates for projectsNo effective system for best practice replicationRapid trai
31、ning of large numbers of people who have no projects to work onProcess measures,such as number of people trained,number of projects launched only assess progress and not resultsLack of understanding of the difficulties inherent in change managementTypical root causes for ineffective Six Sigma implem
32、entation030602MVA_he_ZZT_78610Six Sigma space and our capabilities Source:McKinseyClient needsOur capabilities Considering Six Sigma and need an objective assessment of pros and consSix Sigma is not delivering expected results and need a rapid assessment and recommendations to fix itNeed help in acc
33、elerating existing and under-performing Six Sigma initiativeNeed deep subject matter expertise and prescriptive solutions to move to the next level of performance Six Sigma Executive Awareness Training objective view of Six Sigma for executivesSix Sigma Diagnostic 3-5 day Six Sigma diagnostic of Six
34、 Sigma companies Six Sigma Acceleration for comatose programs by building an effective transformation engine to complement their problem solving and tools already in placeInfusion of deep prescriptive functional knowledge into companies with robust Six Sigma programs Lean Six SigmaPricingSourcingSup
35、ply chain management030602MVA_he_ZZT_78611Lean Six Sigma integration030602MVA_he_ZZT_78612Many companies wish to build on their Six Sigma programs The company has launched a company wide Six Sigma program in response to external pressures several years ago A sizeable investment and efforts have been
36、 put into resource infrastructure building,and training After showing early returns,the rate of improvement has begun to slow There is interest in further content addition specifically around embracing lean manufacturing Management acceptance and commitment to continuing the Six Sigma program remain
37、s high The company would like to continue improvements by seamlessly integrating Lean into the Six Sigma program030602MVA_he_ZZT_78613Despite some common elements lean and Six Sigma have significant differencesWhat is.an integrated operating system of principles,practices,tools and techniques.a stru
38、ctured improvement methodology using a standard approach and statistical toolsDriving principleReduce wasteSynchronize flowsManage variabilityReduce variationOperational KPIs cascaded to front lineProject metricsPerformancemanagement Lean experts Team leaders Natural teamsInfrastructure&involvement
39、Black belts,MBBs,GBs Six Sigma project support Ad hoc teamsPrescriptive solutions One piece flow Pull System SMED Standardized workPrescriptive processes DMAIC DMADV/DFSSStatistical approaches DOE Gauge R&RProblemsolvingSystematic value stream mapping Current state and future stateDriven by key issu
40、es and problems in current processesProject selectionRoot cause analysisProcess mappingBasic analytic toolsLeanSix Sigma030602MVA_he_ZZT_78614Synergies between Lean and Six SigmaSix Sigma Shortfalls Project centric Elitist Rigid process KPI disconnect No prescriptive solutionsHowever Lean and Six Si
41、gma can be highly complementary030602MVA_he_ZZT_78615Synergies between Lean and Six SigmaLean Positives Holistic and systems oriented Front line involvement Standard practices KPI deployed to all levels End state driven project selection Prescriptive solutionsSix Sigma Shortfalls Project centric Eli
42、tist Rigid process KPI disconnect No prescriptive solutionsHowever Lean and Six Sigma can be highly complementary030602MVA_he_ZZT_78616Lean Shortfalls Difficult to understand Difficult to scale Rigor can suffer Weak tie to bottom line Top management understanding superficialHowever Lean and Six Sigm
43、a can be highly complementarySynergies between Lean and Six SigmaLean Positives Holistic and systems oriented Front line involvement Standard practices KPI deployed to all levels End state driven project selection Prescriptive solutionsSix Sigma Shortfalls Project centric Elitist Rigid process KPI d
44、isconnect No prescriptive solutions030602MVA_he_ZZT_78617Synergies between Lean and Six SigmaSix Sigma Shortfalls Project centric Elitist Rigid process KPI disconnect No prescriptive solutionsHowever Lean and Six Sigma can be highly complementarySix Sigma Positives Common language Scalable infrastru
45、cture Fact based rigor Bottom line oriented Top management relates to it easilyLean Positives Holistic and systems oriented Front line involvement Standard practices KPI deployed to all levels End state driven project selection Prescriptive solutionsLean Shortfalls Difficult to understand Difficult
46、to scale Rigor can suffer Weak tie to bottom line Top management understanding superficial030602MVA_he_ZZT_78618The typical integration approaches are too narrowDo not understand fundamental differences between Lean and Six Sigma:view Lean as toolkit vs.total system approach Do not incorporate Leans
47、 systemic value stream mapping and end state view in project selection processDo not take advantage of Lean prescriptive solutions to avoid reinventing the wheelDo not ensure front line involvement Do not provide required breadth and depth in capability building:front line,top management,practitione
48、rsDo not alter performance management system to cascade KPIs to front line030602MVA_he_ZZT_78619Also,they do not address the typical implementation issuesLean pitfallsSix Sigma pitfallsLacks visionTop managementLacks involvementResourcesInadequate critical massElite resource modelProject selectionNo
49、t driven by end stateNot connected to line managements real prioritiesPerformance managementKPIs not defined or cascadedProject metrics disconnected from CTQsMiddle management support and ownershipWeakWeakDeploymentTool centricProject centric030602MVA_he_ZZT_78620We recommend a five building block a
50、pproach to integrationAssess whether current Six Sigma program provides a robust enough platform for integrationDrive project selection from a systemic end state value stream viewDelineate best problem solving approach for each class of problemTrigger demand by defining KPI cascadeMatch and pace cap
