Six Sigma Free Module

6σ+ Six Sigma Plus Black Belt Training Module 1 Introduction All rights reserved. The materials contained in this publication shall not be copied by any means including but not limited to photo reproduction, electromagnetic, or optical transcription nor stored in a retrieval system of any kind without the the express written consent of Adams Associates. [email protected] (979) 297-5198

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Welcome to your New , Improved and FREE Six Sigma Plus Black Belt training module. Have fun and enjoy the power of knowledge. What will you do with your power? And now on to the free module.

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Bench Marking ; List the major components of achieving world class performance. ; Explain meaning of six sigma. ; List key elements of organizational improvement strategy.

; List motivators for organizational change ; List the basic steps of every six sigma project.

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Please take a few moments to answer each questions in the above selfassessment quiz. Notice: these quiz questions are in fact the module objectives. It is the intention of this course design to provide you with the tools and skills for which we will test on regarding certification. œ The purpose of this self assessment is to give you an indication of how well you might know all or part of this material. It should help you to focus on areas where you might need a bit more study.  Please use your self assessment score to compare to your final quiz. ž Write your answers in your personal notebook regarding this module. Ÿ As you proceed through the module, locate correct answer(s) to any question(s) you might have missed. You will discover the identical Quiz at the end of the module. Percentage of improvement over your benchmark quiz is dependent on the amount of effort you apply to learning the module objectives. We hope you will sign up with Six Sigma Plus to complete your Six Sigma Blackbelt training. Have fun and enjoy the power of knowledge!

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Another White Collar “Slave” Process Oh boy!... I have enough on my plate!!

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Layoffs, cutbacks, re-engineering, and such have left most of us have plenty on our work plates. Still our organizations strive to achieve desired business results. As a result, most white collar jobs require us to take up the slack. Most of us work 48 plus hours each week, attempting to stay abreast of these extreme demands. The success of our businesses require more today than any other time in history. How can we balance the needs for improvements for our businesses, and our customers and our internal stakeholders? There are no magic bullets! We invite you to take a look at a proven process, that sustains lasting improvements for businesses, customers and internal stakeholders. A few of top companies such as Motorola, GE, Sun Microsoft, Texas Instruments, Kodak and The Dow Chemical Company are using Six Sigma to gain desired business result performance’s. Some have already reduced defects to 3.4 defects per million opportunities! Our Six Sigma Plus training approach leads to your organizations lasting improvements, freeing up time, energy, costs and other vital resources. Six Sigma Plus increases customer satisfaction, your world class performance, your increased market share and your profits.

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Another Statistical Process?? • Statistics can be defined as; “A branch of mathematics dealing with the collection, analysis, interpretation, and presentation of masses of numerical data”.

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Our Six Sigma Plus process attempts to remove the fear and mystery of using statistics in the improvement process by exploring definitions, interesting facts and providing usable skills training. Ready for a sample? Lets go! Statistics are a vital part of our everyday lives. How so? Most of us use statistics to make important decisions about our everyday lives. We are bombarded by news of statistical reports regarding our society in general, our health, insurance, mortality, birth rates, economic conditions, growth in our communities, and so on. Can you think of some recent statistical reports? Statistics are collections of quantitative data. A statistic is a single term or datum in a collection of statistics. A statistic is a quantity that is computed from a sample, such as mean, average or sigma. A statistic is a random variable ( has variation or is subject to change) that takes on possible value as a statistic. The term “statistical” means to relate to or employ the principles of statistics. And so it is, we use statistics in our daily lives to make better informed decisions. Why not do the same to improve our desired business results?

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What Is Different? • Over the last few decades businesses around the world have used statistics to improve their desired business results, so what’s different about Six Sigma Plus ?

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Most of us, over the course of the last few decades, have been involved in various types of statistical improvements to make our organizations more competitive, to claim larger market share and certainly to improve profits. Many organizations that utilized these programs of the past have experienced some impressive and positive results. But for the most part, organizations found that the “big ticket” items of their desired business results didn’t mature. Why? Was this the fault of programs limitations, lack of skills, or maybe management’s lack of total commitment that denied the desired results? Maybe a combination of each. What makes Six Sigma Plus so much different? Six Sigma Plus melds the business organizations focus through strategy, then binds the synergy of people and process, next it aims these at World Class Performance in the areas that are Critical to the organization’s Customers. Utilization of statistics is certainly a large and important part of the process, but it is only a part of our Six Sigma Plus comprehensive improvement process. Lets take a look at some history of statistics.

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Origin of Statistics • Official statistics are as old as recorded history. • There are several accounts of census taking in the old testament of the bible.

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The origin of descriptive statistics is generally traced to census taking by the Babylonians and Egyptians, 4500 - 3000 B.C. During the Medieval period, governments began to keep records of land ownership. In 1086, William The Conqueror ordered the “Doomsday Book” be written. This book was a record of the ownership and value of lands of England. This work was England’s first statistical record. Statistics are used in almost every field of human endeavor, the applications of statistics are endless. Understanding statistical principles can help us in most of our chosen fields and helps us to make more informed decisions in our personal life almost daily. Can you think of some examples of other types of statistics we use to help us make informed decisions?

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Origin of Modern Statistics • Henry VII had a great fear of the plague, and because of this England began to register its dead in 1532.

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At about this same time, French law required its clergy to register all baptisms, deaths, and marriages. During a plague outbreak in the late 1500’s, England began to publish weekly death statistics. By 1632, these “Bills of Mortality” listed both births and deaths by sex. John Grant (1620 - 1674), a store owner, began to study these publications in his spare time. He noticed some unusual things such as the difference between the birth and mortality rate of men and women. Grant published his observations and analysis in 1662 in a work titled, “Natural and Political Observations Made Upon the Bill of Mortality.” For his achievement of using past records to predict future events, Grant was made a member of the original Royal Society. Grant’s works are considered, by many, to mark the birth of modern statistics.

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Origin of Modern Statistics • The word “statistic” was first used (1719 - 1772). • Statistics were first introduced into the English language. • Six Sigma, the latest in the statistical arsenal.

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The word “statistic” was first used by Gottfried Achenwall (1719 - 1772), a professor at Marlborough and Gottingen, Germany. The word comes from the Italian word “statista” meaning “statesman”. Statistics were first introduced into the English language by E.A.W. Zimmerman of England. It was popularized by Sir John Sinclair in his work, “Statistical Accounts of Scotland 1791-1799”. There have been many contributions made to improving the use’s of statistics. More recently are Statistical Process Control, Statistical Quality Control and finally Total Quality Management.

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Origin of Modern Statistics • British Nurse Compiled Mortality Statistics from British Military Hospitals.

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England, France and Turkey were allied against Russia in the Crimean War 1854 1856. This was the first to have War Correspondents at the battle sites using a new technological advance called the telegraph. They would send, home to England, day by day reports regarding battles, numbers of wounded, and conditions. Sir Sidney Herbert, Secretary of War for England, wrote his friend nurse Florence Nightingale asking her to lead a group of nurses to Scutari to care for the wounded. October 1854, at age 34, Ms. Nightingale leading 38 nurses, set out for the battle front. She found conditions deplorable, unsanitary, little food or medical supplies, wounded laying on dirt floors and their were no latrines. Many wounded would continue to die as a result of these conditions. Florence Nightingale produced shocking “histograms” graphically indicating a rapid growth of the death rate of British soldiers, in hospitals as well as on the battlefields. Florence Nightingale’s statistics and effective presentations of same led to improved hospitals conditions and measurable reductions in the death rates.

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Six Sigma Origination » 1980’s Motorola » Early Black Belt Training » Six Sigma Today

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The terms and concepts for Six Sigma Black Belts originated at Motorola in the 1980’s and signified that individuals possessed special expertise in statistics and technical product and/or product improvements methodology. Six Sigma Master Black Belts suggested finely honed skills and discipline, while the Six Sigma Black and Green Belts had recognized depth of designed skills training and experience. Early Six Sigma Black Belt training was developed on a joint venture effort among companies including Motorola, Texas Instruments, IBM and Kodak. This training lead to an almost exclusively technical role that was focused on manufacturing and product related improvements. Today there is no official job description or certification for Six Sigma Black Belts. The role and skills that once defined it have become much more diverse. Six Sigma is used today, for example, in technical, non technical, non profit, service, manufacturing, and safety improvement processes. Our Six Sigma Plus training process generically defines, provides skills training and certifications for Black and Green Belts.

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World Class Performance

Moments of Truth

Internal Customers 6σ+

Systems

People

Strategy [email protected]

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Six Sigma Plus objective is designed to achieve World Class Performance. Six Sigma Plus applies in all areas. Some examples include insurance brokerage services, hospital care, bulk chemicals, training services, commodity fasteners, silicon chips, software, gas turbines, cars, jet airplanes, safety, and everything any of us do to generate income. Six Sigma Plus approach starts with a well conceived and communicated Business Strategy that addresses: ; People and People Development ; Processes and Systems ; Six Sigma Plus approach to projects The result of successful Six Sigma Plus application is the melding of the business organizations focus, through strategy, binding the synergy of people and process that is aimed at World Class Performance in the areas that are Critical to the organization’s Customers.

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World Class Performance

Moments of Truth

Internal Customers Systems

6σ+

People

Strategy [email protected]

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Drawing on the concept that any endeavor should start with the end in mind, we consider World Class Performance as defined by the customer in the market place, to be the objective that all businesses should seek to achieve. With that as the desired objective, the over all business unit strategy must be developed. This strategy will have 6-9 key performance areas at any one time. As one moves down the organization these 6-9 key performance areas will gain more and more specific application to those in a specific part of the organization. Stakeholders should be able to make a direct link between the daily activities they are performing and at least one of these 6-9 key performance areas. Six Sigma Plus Improvements come in two different ways: Systems & People 1. To improve the systems and processes that are in use, using all of the process improvement tools. 2. Development of the capability of people as individuals, in teams and as an organization. Efforts to improve one to the exclusion of the other will not be as effective as an approach as will an approach that considers and includes both.

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Six Sigma Plus 5 Philosophy 5 Statistic 5 Process

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Six Sigma Plus is a philosophy, or understanding, that defects cost money. One way to become more profitable is to eliminate defects. Organizations that do this have a lower cost structure and are more likely to have higher profits and loyal customers. Defects cost money, fewer defects mean less cost to the producer and customer. Lowest cost generally makes for the most competitive producer. Six Sigma Plus is a performance metric. Meaning that the product or service is performing at a level where the chances of a defect are less than 3.4 in a million opportunities. The 3.4 ppm defect rate is for a not what you find if you look at a normal distribution table considering both tails. In a later module we will explore why the 1.5 standard deviation shift of the mean produces no more than 3.4 ppm defective. Six Sigma Plus is a methodology for working on projects utilizing specific phases. These are Strategy, Define, Measure, Analyze, Improve, and Control.

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Project Management

Personal, Team and Organizational Growth Define

Measure

Scope, boundaries, expected results in balanced score-card areas, high level process map, resources, time. Align Strategic Plan, Value, Scope, Document Process, Capability, Measurements, Performance.

Analyze

FTA, FMEA, Root Causes, Test Means & Variances, Cause & Effect, Pareto, Task Force, Cycle Time, Reliability, Confirm Value

Improve

Reduce Cycle Time, Improve Reliability, Design of Experiments, Reduce Complexity Management of Change, Project Management

Control

Specific Skills, Tools, and Techniques

Control Charts, Audits, New Capability, Documentation, Share/Educate, Total Value

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First the strategy of the organization is developed, then progress is made along the two areas of process/system improvement and people development. Six Sigma Plus uses a project approach to make improvements in these critical areas. Strategy, Define, Measure, Analyze, Improve and Control are the six basic steps involved. There are Project Management considerations that need to be applied when using theses basic steps. These skills are appropriate not only to Six Sigma Plus projects but also to any kind of project work. In each step of the project there is a need for the individuals, the team and the organization to add to their development of interpersonal, versatility, leadership and relationship skills. Within each phase of the DMAIC (see above slide) there are specific tools and techniques that can be applied. Some have application in multiple areas and some are very specific. The tools and techniques are much like the tools in a craftsman’s tool box, the best results come when you have learned how to use multiple tools and have the judgement to know when each is best applied. Depending upon the situation there is likely more than one tool that could be used. The mark of a professional is to know which tool to use in which situation. Key is to make the tools work for you, not you working for the tool.

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ement g a n a tM Projec

th Too Tec ls and hni que s

Pe Or rson ga al, niz T ati eam on , Gr ow

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This a three dimensional representation of the areas involved in Six Sigma Plus projects. Expertise in only one dimension produces a single line, while developing in two dimension produces a flat sheet. It is only when all three dimensions are developed that the fullness of Six Sigma Plus potential will be realized. While the first projects may be rather small in both scope and impact. As you become more proficient with the tools and techniques, improve in projects management skills and grow as an individual, team and organization, the impact expands dramatically.

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Six Sigma Plus Why Where What How Who When

Business Strategy World Class Performance Customer Critical Criteria Defect Reduction Projects DMAIC, People Development, Tools Black Belts, Green Belts, Team Members Usually 3-9 months per project

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Six Sigma Plus is more than simple process improvement. While the tools and techniques of process improvement are vitally important, if these tools are not supported by an underlying business strategy and the development of people the gains will not be as big as they could be. Six Sigma Plus Focuses on Customer Critical Criteria and World Class Performance with the process improvements, people development and a sound business strategy to yield results. Six Sigma Plus will provide you with the tools and techniques necessary to support your organizations business strategy. It will show you how to measure, analyze, improve and control processes. You will gain knowledge of people dynamics, including a better understanding of yourself, that is essential for the process improvements to succeed. Too many times there are attempts to focus on process improvement, or people development, to the exclusion of the other. Success with these approaches is almost always transitory. Long term sustained improvement requires both.

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Six Sigma Plus Comprehensive system for achieving and maximizing business successes of leadership and performances.

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Six Sigma Plus isn’t about theory. It is about actions towards sustainable, near perfect, process improvements. Successes are created by the people, systems, skills and culture for constant renewal of the organization towards desired business results. In your improvement project efforts, the difference between a success and failure will often be determined by leadership and people skills found in our Six Sigma Plus training. Six Sigma Plus can accelerate the development of interdependent collaboration within an organization. It accelerates the rates of improvements. Six Sigma Plus is the vehicle used in executing an organizations strategic change, providing a greater success in ability to carry out minor adjustments and major shifts as dictated by the needs of your business. Six Sigma Plus enhances the organizations value and desire of internal and external customer inputs and satisfactions.

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Six Sigma Plus Process • All processes in an organization including designing products, services, measurements of performance, support systems, delivery and customer improvement systems.

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Six Sigma Plus priorities begin with an focused understanding of your Customers Critical Criteria, expectations, satisfactions and values as they regard your organization. Performances should then be measured against these customer criteria. Customers should be viewed as being both internal, as well as external to the organization. Six Sigma Plus requires management to be data and fact driven. Management must clarify the measurements that are key to determining the success of the organizations desired business results and performances. Six Sigma Plus is a “process” focused management and improvement system. The process helps organizations to build competitive advantages and to deliver value to their customers.

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Synergistic • Six Sigma Plus should be a synergistic, collaborative, and customer focused system that has no organizational boundaries.

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Six Sigma Plus requires the organizations management teams to become “proactive” versus reactive. Management should set clear goals and focus on problem prevention versus fire fighting emergencies. Management should be asking “why do we do what we do” versus just going along because that’s the way its been done in the past. Six Sigma Plus internal customers benefit greatly by gaining knowledge as to how they might fit into the organizations big picture. Internal customer stakeholders, should be able to recognize and measure the interdependence of activities in all or part of a process. In gaining and understanding of the end users needs, how work flows through an organizations process or supply chain, the internal customers are better equipped to meet the needs and Customer Critical Criteria of “external customers”, thus preventing costly mistakes, failures or unwanted waste.

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Six Sigma Projects • Introducing change means to challenge the “old guard” personal and organizational paradigms.

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Six Sigma Plus projects are designed to improve, or to change, to successfully achieve desired business results of the organization. Introducing change means to challenge the “old guard” of both personal and organizational paradigms. Paradigms are our personal beliefs about how things are supposed to be. We as people often filter out and resist incoming data that does not closely match our specific paradigms. We as people, and organizations, get set in our ways, are comfortable, and thus most suggested or required change makes us uncomfortable. As a result some of us will resist making some or all of the needed changes. Once we have personal buy in to the new change, we can begin the slow process of change. We say slow because, those wanting the change to take place generally feel the rest of us aren’t moving towards the change fast enough. You’ve been asked to change and have asked others in the past... How did you feel about their progress towards the desired target? The greater the belief in our paradigms, the more difficult will be the opportunity for making needed change. Much resistance from personnel within the organization is often the result, as change “levels the playing field” and some stakeholders feel they will lose their personal or positional power.

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Improvement Projects Map Components 1. Identify Core Processes and Customers. 2. Define Customer requirements. 3. Measure Current Performance. 4. Prioritize, Analyze and Implement your Improvement Processes. 5. Expand and Integrate your Improvement System.

Strategy Structure

Processes RESULTS

People

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Most products or services that do not change and evolve, will likely have limited success and life in the market place. The auto industry, as example, has locked themselves into a cycle of a new model every year. Frequently there are only minor or cosmetic changes made to these new models. Ever have trouble identifying one year model from the next of a particular vehicle? Six Sigma Plus teaches that redesign of Products and Services should be based on the Measured Value from the Customers and Supplier capabilities. Done correctly, the Redesigned Product and Service should do a better job of meeting and exceeding Customer expectations than did the original product or service. When Six Sigma Plus is applied, the economic return on investment should improve for the Business Unit involved. Better products with fewer defects, cost reduction projects, better understanding of the Customer, improved work flow, employee commitment, supplier involvement and reduced cycle times are but a few of the contributing areas. Good redesign should reduce complexity, have fewer defects, improve reliability, and offer the Customer functionality not in the original product or service. When these objectives are met there is a direct cause and effect relationship to improved margins and larger market share.

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Management Leadership Strategy for the Organization Customer Focus Champions in each Business 6σ+ Project Leaders (Black Belts)

Training Allowing only value added projects Monitor Process and Results

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The full benefit of Six Sigma Plus will not be realized without the “active leadership” of the Senior Management which include: œ Well defined, clearly communicated, strategy used in decision making.  Focus on the customer. While internal services and processes may improve efficiency and productivity, customers decide if you stay in business or not. ž Empowering Champions with the ability to access and communicate with senior managers, and directing Black Belts. Ÿ Project leaders, experienced people trained in the Six Sigma Plus methodology to lead improvement efforts in the areas consistent with the organizational strategy.   Project selection for implementation may be the single most important indicator of success. Management must maintain responsibility for the success of the project just as they would for any other significant activity. ¡ Six Sigma Plus projects should be reviewed by management on a regular basis. Success, problems, issues, shared learning and of course results should be part of these reviews.

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Map Business Process 1. Draw process boxes and name the boxes

6.Identify Intermediate Steps

2. Identify output.

5. Identify Inputs 4. Identify Last Step

3. Identify Customer

7. List sub steps [email protected]

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This simplified map of a business process should be done by those assigning a project to the Six Sigma Plus Black Belt. If map is not provided, you should prepare it early on and have a review with the Champion and Process Managers to assure that there is agreement on the scope of the project. This map can help provide a well defined and well scoped project. Process Business Map Steps 1. Draw and label Process Boxes. 2. Identify Output. 3. Identify Customer. 4. Identify Last step. 5. Identify Inputs. 6. Identify Intermediate steps. 7. List Sub steps.

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MACRO Map 20’

3’

P1

P2

P3

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P4

P5

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Once the scope of a project is defined and the basic process map agreed upon, it is time to identify the full detail. There may be many sub processes (more than just the P1-P5) indicated here, required to obtain needed detail. A large work space is needed to get all of the detail of the process defined. We recommend that you use Post Its and a number of taped flip chart sheets or butcher paper to make this MACRO map. Indicate where the sub processes begin and end. It is frequently at the interface of processes where major problems occur. One of the key things here is to make a physical representation of time. You have to decide if the process is driven by work day time or calendar time. If work day time, then a day has 8 hours not 24. For example a 3 inches might represent a week or a day. What ever it is as you put up Post Its, be sure that each activity is represented by the time it takes. If for example there is an aging step that is seven days calendar time and you have decided that 3inches represents a full day, on the map this aging step should be 21inches long(7X3). At the other end a one hour activity with this would be 0.125 “ long. (3/24=0.125).

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Types of Measures • Lagging Measures – After the fact • Financial • Leading Measures – Proactive to achieve the strategy • Behavior and actions

• It is the proactive actions and behaviors that cause achievement of the Strategy

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Some of the measures you want will come after the fact. Financial and reports on the Customer Critical Criteria (CCC) are usually after the fact. These are often the result measures that we are seeking. Frequently we can do little to alter these measures. We must move down in our process to look at the causes and the leading measures. Leading measures are the things that cause the result measure to happen. These are the causes that lead to the results.

Define Performance Measurement

Lagging Measures

Desired Objective Leading Measures

Measure Actions Impacting Performance

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Behaviors 25

Balanced Score Card • • • •

Financial Customers Growth Learning

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Six Sigma Plus recommends that you consider measurements in at least the four areas listed (see slide) for every project. One of the key management responsibilities is to decide how some of these measures will be applied. If you do not have guidelines from you Management, we encourage you to take the lead and propose standard guidelines. Organizations that have achieved great success, utilizing Six Sigma Plus, Plus have very strong rules about tracking financial gains of their projects. Most require a direct link to the bottom line profit before gains can be counted. One year is a common time frame used to see if the improvements are real or transitory. Some Examples

œ Labor savings--allowed only if headcount is reduced or an approved hire is not made and the budget is reduced.

 Space--leases must be canceled and the savings calculated on the money not paid out. An alternate is to sub lease and the income less expenses is counted.

ž Inventory reduction --only time value of the money tied up in inventory is counted.

Ÿ Yield improvement--measure the before and after uses and the difference is counted. Budget should be reduced to reflect the improvement.

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Simplified Sigma Conversion Table Yield 30.9 % 69.2 93.3 99.94 99.98 99.9997

DPMO 690,000 308,000 66,800 6,210 230 3.4

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Sigma 1 2 3 4 5 6

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Sigma levels of performance are expressed in “Defects Per Million Opportunities” or DPMO, which indicates how many errors would show up if an activity were repeated a million times. Sigma levels are another way of communicating the same information. Six Sigma Plus defines customer requirements clearly and thus measures can be used to measure and compare very different processes throughout an organization focusing on defects and defect opportunities. After you clearly define a defect you can measure almost any type of business activity or process. These measures must be applied across an organization with established guidelines. Measures should not remain “static”. Customer requirements change and so should your performances. Process improvement should find targeted solutions so as to eliminate “root causes” of a business performance problem. Our emphasis should be on finding and targeting solutions to address the “vital few” factors that cause the problem. A unique problem is presented for the Six Sigma Project Manager each time he or she starts a new project... “How do I write a well planned project mission statement that is inspiring, clear, accurate, measurable and one that results in action?”

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Unique Marketing Advantage

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Once your customers have developed a low tolerance for defects, you have a unique marketing advantage over your competitors. This is true, provided you continue to focus on the Customer Critical Criteria and improvement processes. In these areas mentioned, it is going to be very difficult for a competitor to match the level of performance your customers have learned to expect from your business organization. Six Sigma Plus focuses on the Customer Critical Criteria (the important variables) that drive a successful redesign of a product or service. Understanding what the voice of the customer is really saying, is of vital importance.

How do you do you get started?

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Loyal Customers

As the business results are achieved there should be an increase in Customer Satisfaction with a Loyal Customer as the objective [email protected]

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True/False Quiz, Circle the Correct Answer. T/F A customer the most important person in any business. T/F Customers dependent upon us. T/F We are dependent upon the Customer. T/F A Customer is an interruption of our work. T/F A customer is the sole purpose for our Work. T/F A Customer does us a favor when he comes into our Business. T/F We are doing the customer a favor by waiting on him. T/F A Customer is an essential part of our business--not an outsider. T/F A Customer is not just money in the cash register. T/F A Customer is a human being with feelings and deserves to be treated with respect. T/F A Customer is a person who comes to us with his needs and expectations and it is our job to fill those needs and expectations. T/F A Customer deserves the most courteous attention we can give him. T/F The Customer is the lifeblood of this and every business.

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Step One Strategy • Identify Core Processes & Key Concepts – Objectives – Outputs

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Step 1. We should first Identify our businesses Core Processes & Key Concepts. Objectives should be to A. Create a clear “Big Picture” of our Core Processes & Key Concepts.. B. Understand Critical and Cross-functional activities in our organization and “how” these interface with our external customers. C. Develop the 6-9 key performance indicators for our business. Outputs should result in 1. A Map of value delivering activities in our organization. 2. Our core value adding processes identified. 3. Core products and services we provide to our customers. 4. Understanding of “How” these processes flow across our entire organization. 5. Measures for the key performance indicators.

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Step Two Define • Define Customer Requirements. – Objective – Outputs

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Step 2. We should then Define our Customer’s Critical Criteria. Objectives should be to 1. Establish standards for performance that is based on actual customers input, so that process effectiveness and capability can be measured. This will allow us to predict our customer’s satisfaction. 2. Develop or enhance systems and strategies to collect on-going Customer input and data gathering. 3. Make the direct link between our key performance indicators and the Customer Critical Criteria. Outputs should result in 1. A clear and complete description of the factors that drive our customer’s satisfaction for each output and process for our organization. 2. These should be tied to end products or services that make it work for our customer’s. 3. “Service requirements” should describe describe “how” our organization should interact with our customers.

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Step Three Measure • Measure Current Performance. – Objectives – Outputs

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Step 3. We should then Measure our Current Performance against our Customer’s Critical Criteria and our key performance indicators. Objectives should be to 1. Accurately evaluate each process’s performance against definable Customer Critical Criteria link to our key performance criteria. 2. Establish a system for measuring key outputs and services features we offer. Outputs should result in 1. Benchmark Measurements that are the quantified evaluations of our current or recent process performance’s. 2. Capability Measurements that are the assessments of our ability regarding our current process or output to deliver on Customer Critical Criteria. These would include “Sigma” scores for each process, thus providing for comparison of very different processes across our organization. 3. Measurement Systems that are the new or enhanced methods and resources to be used for on going measurements for our customer focused performance standards. 4. On going measures of our key performance indicators.

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Step Four Analyze • Prioritize,and Analyze Processes that deliver Customer Critical Criteria. – Objectives – Outputs

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Step 4. We should then Prioritize and Analyze our Processes that deliver the Customer Critical Criteria. Objectives should be to 1. Identify our organizations highest potential improvement opportunities. 2. Develop process oriented options supported by factual analysis, collaborative and creative thinking by our organizations employees. 3. Prioritize the different options for impact on the Customer Critical Criteria and upon the other Balanced Score Card areas. Outputs should result in 1. Improvement priorities that are based on impact and feasibility regarding our organization and it’s customers. 2. Process improvement solutions that target specific root causes to problems. 3. An understanding of how the various solutions impact all of the areas of concern. This allows for a balanced approach that does not sub-optimize one area and actually hurt the organization as a whole.

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Step Five Improve • Implement Improvement Processes. – Objectives – Outputs

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Step 5. We should then Implement our best option for the organization as a whole. Objectives should be to 1. Effectively implement our organizations new solutions and processes. 2. We should also provide measurement proof of our sustainable gains. Outputs should result in 1. New or redesigned improvement processes, activities and work flows created to meet new demands, incorporate new technologies, or achieve dramatic increases that focus on Speed, Accuracy or Cost . 2. Performance Improvements of our organizations desired business results as shown by our key performance indicators. 3. Improvements for the organization as a whole. 4. Greater customer loyalty as we will be meeting specific Customer Critical Criteria better than ever before.

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Step Six Control • Expand and Integrate the Performance Improvement Systems. – Objectives – Outputs

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Step 6. Finally we should Expand and Integrate our organizations Performance Improvement Systems. Objectives should be to 1. Establish control systems that assures the gains will not be lost. 2. Initiate on going business practices that drive improved performances and ensure constant measurement, examination, and renewal of our organizations products, services, processes and procedures. Outputs should result in 1. Process Controls that measures and monitors the sustain performance improvements our organization has gained. 2. Process Ownership & Management of our organizations cross functional support processes, having input from our “Customers”, “Markets”, and “Internal Customers”. 3. Response Plans to be used as the mechanisms to act. These are based on key information so as to successfully adapt our strategies, products, services and processes. 4. Improvement Culture that uses statistical tools as our organizations position of continuous renewal as a part of our everyday business environment

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Essential Improvement Themes 1. Focus on the Customer. 2. Data Fact Driven Management 3. Process Improvement Focused Management.

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1. Focus on your customers. Make this “real” and back it up with training skills for utilizing the desired attitudes and behaviors that place the customers needs first. Tie your organizations business systems and strategies to your “Customers” expectations and desires. 2. Data and fact driven management must provide effective measurement systems, tracking both results and outcomes, as well as process input and related predictive and preventive data. 3. Process improvement focused management is the driving force for growth and success of the organizations desired business results. Improvement processes should be documented, communicated, measured and refined on an on-going basis.

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Six Essential Improvement Themes 4. Proactive Management. 5. “No Boundaries” Collaboration. 6. Drive for World Class Performance and Perfection.

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4. Proactive management involves habits and practices that anticipate problems and changes, applying facts and data, that questions assumptions about your organizations goals and “how you do things”. 5. “No Boundaries” collaboration requires cooperation between internal customers, external customers, suppliers, and other stakeholder partners. 6. World Class Performance and Perfection requires a tolerance for failures, giving internal customers, (stakeholders) in the organization, the freedom to test new approaches, even while managing risks and learning from mistakes. Successfully embracing these essential improvement themes will lead to raising the performance and customer satisfaction bars for your organization. Gaining continuous and incremental improvements will put a firm into a better position to successfully achieve the organizations desired business results of gaining and maintaining “Loyal Customers”, Improving Market Share and Increasing Profitability.

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Elements

Structure Process People

Vision Strategy

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Implementing Six Sigma requires taking a new and closer look at many of the essential parts of your organization. Six Sigma implementation must have some structure within your organization, it cannot be a bolt on activity that is managed outside of the normal business. The business units of your organization should create Champions and Blackbelts to insure successful achievement of your organizations desired business results. Senior management of the business units must maintain responsibility for the success of Six Sigma. Champions must have ready access to the senior management and be knowledgeable of the activities of the Blackbelts in their business. Six Sigma projects should not be started until the Blackbelt and Champion agree the scope and parameters of the project are adequately defined. It is then up to the Blackbelt to lead the project to its completion. People development is more than teaching tools and techniques. Leadership and team building skills are essential for the Blackbelts. Understanding behaviors and motivation are equally important development areas.

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Information and Analysis

Business System

Re-Design Products & Services Leadership Suppliers

Measure Value

Products Services Work Processes Distribution

Visions Values Strategic Direction

Employee Development Involvement

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Competitors

Customer Satisfaction

Business Results

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Each component of your Business System is an integrating factor on each and every other component within the system. First evaluate your business system as a “whole”, then move to exploration of the components. Linkage between each component is as important as the component itself. Complexity can overwhelm and undermine your efforts. Seeing the patterns behind the events, can lend to simplification and understanding. This, in turn, can allow you to provide needed leverage for your actions aimed at improvement changes. This should also help you to identify limits to your success or growth problems within your organization. Without complete, appropriate information and analysis of the entire system, you set yourself up for failure. You should explore the discipline of your “Systems” thinking, viewing your business world as a whole, a framework of patterns and inter-relationships, in order to successful achieve your organizations desired business results.

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Success with Six Sigma Sustained Effort • • • • • •

Strategy Leadership People Development Systems Improvement Project Work Training and Development

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The best Six Sigma Plus implementation strategy would be to opt for the start up and training of the organizations Senior Management, Champions, Black Belts, Green Belts and Internal Customers. Six Sigma Plus starts at the very top of the organization with management, requiring their active support and participation in the process. Senior Management’s duties include project, people selection, project reviews, rewards, and recognition. Six Sigma Plus success results in the completion of various projects. Projects are lead by a Project Manager (Black Belt) that understands how to apply needed tools and techniques at various stages of the project. If change is not welcome in your organization, Six Sigma will be of little value. People development activities must occur through out all of your organization. Six Sigma Plus tools and techniques should be taught to internal customers, lending to their collaboration skills for successfully achieving the organizations desired business results. Leadership, understanding behavior, team skills, and utilizing Six Sigma Plus tools are essential ingredients for all project stakeholders for achieving success of your organizations Six Sigma Plus project.

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Bulk of Opportunities

Low Hanging Fruit Blinding Obvious

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If your organization is considering implementing Six Sigma Plus, you likely have already taken care of your organizations blinding obvious issues and problems. These likely will not require any special talent to find or address. Not to say that they are all easy to resolve. This low hanging “fruit” can be addressed with very basic problem solving tools and techniques. In most organization’s, the bulk of the improvement opportunities are going to be more difficult to resolve successfully. These improvement opportunities maybe a little harder to reach and will likely require more specialized training, tools, and techniques such as those found in Six Sigma Plus training. It is these areas of improvement opportunities where Six Sigma Plus will return huge benefits to your organizations and provide the ability to successfully achieve your desired business results.

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Synergy • No magic bullets. • Linear approaches yield additive improvements. • Collaborative and synergistic approaches yield exponential improvements. • Continuous learning is required to advance.

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As you start preparing for Six Sigma Plus, please realize that there are no magic bullets. This effort is applied in a planned and intelligent fashion. As projects are completed, one at a time, there is an additive effect. Improvements will tend to be linear with each project that is completed. As more projects are completed the benefits grow and the synergy of multiple improvements begins to yield more than the sum of the individual projects. When attempting to complete your first Six Sigma Plus project you may find the process is somewhat slow. Take heart as with any new set of skills you will improve with practice. Exponential growth is possible as the synergy between projects develop and the project pace is increased. This will happen as Management, Champions, Black Belts, Green Belts and the organization as a whole gains more project experience and success. A truly successful Six Sigma Plus project effort shares the success and challenges. This not only gives encouragement to others, it also allows people with success stories to receive some of the recognition they deserve. Every project is a learning experience. Leadership, Champions, Black Belts, Green Belts, and internal customer stakeholders must each continue to learn and grow with the Six Sigma Plus process in order to continue the successful achievement of the organizations desired business results.

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Introductory Module Final Quiz 1. List the major components to achieving World Class performance. 2. Describe the meaning of Six Sigma. 3. List key elements in an organizational improvement strategy.

4. List motivations for an organization to change. 5. List the four steps found in every Six Sigma project once it is defined.

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Complete the following to strengthen your personal learning process and growth: œ Complete the above quiz. Compare your answers to objective benchmark questions you answered at the start of this module. Did you significantly improve? We suggest that you correct answers to quiz questions missed.  What are the key learning items you personally gained from this module? ž List and Explain how this training will impact your personal or business life. Thank you for participating in this Six Sigma Plus Free Introductory Module. We hope you will join the many others who will begin their “Six Sigma Plus Black Belt Training” using our new, faster and cheaper, distance learning process. Visit our web site often to see our latest training releases. Please tell your friends to join you in our chat groups, to drop us a question, sign up for our e-mailed newsletter, and about our growing training program offerings.

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What Next?? • Have you decided to continue your learning about Six Sigma Plus ? • If so answer the final quiz on the previous page and send by e-mail to: [email protected]

• Send payment by snail mail to: Cary W. Adams Adams Associates 10A Bayou RD Lake Jackson, TX 77566 [email protected]

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When we receive you final quiz answers we will:

œ Open a file for you.  Respond to let you know the answers were received. ž Comment if any answer is not as fully developed as we expect. Ÿ Wait for payment, and when received   Direct you to a URL to continue your training.

Payment Options: Black Belt Training is five (5) Blocks of training. Each is $990 or $4390 for the entire program. Visit our web site for a full description of the modules contained in each major block of training.

Green Belt Training is three (3) Units of training. Each is $890 or $2390 for the entire program. Visit our web site for a full description of the modules contained in each unit of training.

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