Six Sigma & You14747.pptx
1Six Sigma&YouRay StarkRay StarkCorporate VP,Quality and Six SigmaCorporate VP,Quality and Six Sigma2Power ShiftProduct ProliferationSmall Production RunsShort CyclesGlobal CompetitionService Counts-Product is a GivenIntegrated DesignFew PartsQuality Designed-InCreate MarketsChanging World Requires New Skills,Values,ToolsLimited Product LineLarge Production RunsExtended Product CyclesNorth American Centric Service as an AfterthoughtDesign,then ProduceNon-Standard PartsInspect QualityLate to MarketFrom The Producer.To The CustomerMarket CharacteristicsManufacturing Process3What Is Six Sigma?2.0 3.4 DefectsPer Million308,500 DefectsPer Million30%Cost of Poor QualityHigh Warranty Cost Poor Deliveries,High InventoriesHard-To-Build DesignsLess than 50%Rolled Throughput Yield6 Past:Producer ModelFuture:Customer Model7%Cost of Poor QualityAgile&On-time,Low InventoriesIntegrated with Customer&SupplierFew Facilities,Low Overheads99.9%+Rolled Throughput YieldWell Developed Technologies,Secret Is In ExecutionSystematic identification&elimination of defects in all processes through the use of advanced assessment&statistical tools.4SuccessfulCompanies Respond By Fundamentally Changing Their Approach.Total QualityCycle Time ReductionSupplier ManagementProcess Re-EngineeringAdvanced TQApplied StatisticsLean ManufacturingSupply Chain ManagementHigh Performance Work OrganizationsPlant ClosuresNew Tools&ApproachesAlliedSignal:A Leader In Change5TQ/Six Sigma Has Been Embraced As The Change Process Because It Embodies Three Fundamentals Of A Premier CompanySatisfying customers as a first priorityContinuously improving all work processesHaving highly motivated and involved employeesPeople Driving ToPerfect ProcessesDelighted CustomersDelighted Customers6ProductivityGreat PeopleDrivingSix Sigma ProcessesResultsPremier CompanyAlliedSignal VisionGrowth7Great PeopleOur People Are The Key To Being PremierKnow Our Business And Our CustomersOrganized In Natural Work TeamsAccountable For,And Committed To,Achieving ResultsEmpowered To Apply Six Sigma Tools To Continuously Improve Performance8Employees Managing a Process.Employees Managing a Process.Daily review of process performanceDaily review of process performance Constantly improving their processesConstantly improving their processes Empowered to satisfy customers Empowered to satisfy customers requirementsrequirementsEmployees Accountable for a Process.Employees Accountable for a Process.Engage employees in obtaining unitEngage employees in obtaining unitresultsresults Individual performance based onIndividual performance based onteam performanceteam performanceHigh Performance Work Teams(HPWO)Building BlocksEmployees Organized Around Processes.Employees Organized Around Processes.Define business processes Define business processes Align employees around processesAlign employees around processes Broaden job scope and responsibilityBroaden job scope and responsibilityEmployees Improving a Process.Employees Improving a Process.Employees have tools to improve processesEmployees have time to utilize toolsEmployees have resources to help implement their suggestions and ideasEveryone Is A Process Owner.Everyone Is Involved In Continuous Improvement9Six Sigma ProcessesStriving For PerfectionTo Delight Our CustomersSimplify-LeanEliminate DefectsReduce VariationPerfect Processes10Is A 99%Yield Good?If each activity had a yield of 99%,the“First Time,First Quality Yield”would be Only 86%In other words,out of 100 outcomes:14 bad parts14 wrong paychecks14 customer calls not returnedActivity A100INPUTOUTPUT9999%At First Look,This Might Seem Okay,but Consider a Process with 15 Activities:Wasted Time,Higher Cost&Lower Capacity,Unhappy CustomersWasted Time,Higher Cost&Lower Capacity,Unhappy CustomersA 3.85 Sigma ProcessA AB BC CD D.1008611Where Can We Apply Six Sigma Tools?Target Key Business Areas To Maximize BenefitProcurementCycleProductionCycleReplenishmentCycleCustomerOrderCycleSalesCycleProductDevelopmentCycleEnabling Processes(Finance,HR,IS,etc.)AlliedSignal Business Process FrameworkAlliedSignal Business Process FrameworkRequisition To CheckRequirement To ProductRequirement To StockOrder To CashContactTo OrderIdea To ProductWherever Defects Occur:12Six Sigma=Reliability,Customer Satisfaction&Market ShareSix Sigma=Reliability,Customer Satisfaction&Market ShareHigher Auxiliary PowerUnit ReliabilityDesign Of ExperimentsFailure Mode and Effect AnalysisProcess MapsLean ManufacturingTools:80%Improvement In Average Time Between RemovalsImproved SparesFill Rate&Inventory92%Fill 92%Fill RateRateFaster Repair Turnaround&Higher Market Shares29 Days 29 Days TATTAT50%50%ShareShareRoot Cause AnalysisTeamworkProblem SolvingGoal Deployment77%77%37%37%49 Days49 DaysImpact On Customer Satisfaction 96 Days of96 Days ofInventoryInventory150 Days 150 Days 13Six Sigma Process ImprovementBroadening Six Sigma ApplicationsOrder Placed To Cash ReceivedSalesperson Misquote,ErrorSalesSalesAcquisitionAcquisitionOrderOrderFulfillmentFulfillmentInvoicingInvoicingAccountsAccountsReceivableReceivableDiscrepancyDiscrepancyManagementManagementIncomplete ShipmentIncorrect Order FulfillmentInvoice InaccuracyInvoice Missing DataPast-Due ReceivablesMisapplied CashMissing Documentation20%20%15%15%Past Due Receivables$65MCash FlowImpactFocus On Entire Revenue ChainMeasure DefectsIdentify&Flag Defective InvoicesRoot Cause AnalysisMeasure Resolution Cycle Time14Where We Go From Here.Results-Sigma-Savings-Growth-Cycle TimeDepth Of TalentCommitment Of EmployeesCustomer ImpactLots Of Progress,But Need To ProliferateProgress:Progress:To Move To The Next To Move To The Next Level:Level:Better IntegrationAddress All Processes Broaden Talent Completely Aligned GoalsTighter Links To CustomerTighter Links To Supplier Base15Becoming A Premier Company AlliedSignal-1998 GoalsDrive growthImprove competitiveness via learningEnhance processes,productivity and cash flow via Six SigmaCustomer Driven Goals16Goal DeploymentBusiness Objectives Determine Goal Deploymentx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xA Top-Down/Bottoms Up Process.Bottom-upBottom-upreviewreviewTop-downTop-down deploymentdeployment171998 Goal and Objective DeploymentCorporate GoalsSBE Sample Goals and Objectives Voice of the Customer Program Earned Value Schedule Performance Index OEM Sales Cost Performance Index Aftermarket Sales ProfitabilityTarget Improvement At Every LevelSite Customer Satisfaction Eliminate Waste Improve Supply Chain Controlled Design/Disciplined Procedures Capable Organization/Employee SatisfactionSBU GoalsHigh Performance Work Organization Zero Defects On-Time Shipment Update Design Control Procedures 4+Rating On Employee SurveyIndividual 40 Hours Training Certify In Additional Job Skill Improve Process Reduce Cycle Time18Major Investment In Training,Huge ResultsNumber Of ResourcesNumber Of Projects,CumulativeBlackbelts:Blackbelts:2,0002,000Green/Green/Yellowbelts:Yellowbelts:4,0004,000Blackbelts6 Months TrainingFull-TimeMasters Of Defect EliminationGreenbeltsUp To 1 Month TrainingOperational LevelProficient In ToolsRESULTS$1.5B Saved Since 921.8 IncreaseAggressive Six Sigma Deployment19AlliedSignals Six Sigma JourneyUp 1.8 Sigma-$1.5B Savings.And Much More To Do$1.5BManufacturing Quality vs.COPQSavings,Cumulative1992 ALD Avg.1997 ALD Avg.20Process MindsetAccess to Cost InformationUnderstand Impact On Cost&ProfitabilityFact-Based Decisions Process Improvements Evaluated,Prioritized&Measured Process Improvements Evaluated,Prioritized&Measured Using Meaningful Process Cost DataUsing Meaningful Process Cost DataLinking Activity Based Management(ABM)to Six SigmaABM:Analysis of process costs,drivers of costs,&profitability so thatfact-based decisions can be madeSix Sigma:Systematic identification&elimination of defects inall processes usingadvanced tools2192-9798-00Six Sigma$300MAlliedSignal Is Turning Up The HeatSix Sigma-Accelerating PerformanceAverage Savings Per YearCustomer DrivenIntegrated ProcessesEnterprise-WideProductivitySix Sigma$500M7.0%7.0%$20B$20BRevenue($M)22ProductivityBreakthrough PerformanceLean EnterpriseSupply ChainMaterials ManagementEnterprise Resource Planning/SAP23Breakthrough GrowthGrowthCustomer ValueNew Product DevelopmentGlobalizationAcquisitions24AlliedSignalGrowth Overview$14.4B8%4%$20BWe Expect To Be$20B In Sales In 2000Acquisitions Outpace DivestituresPortfolio with Higher Growth RatesImproved Growth Processes Growth1998-200012%Annually25New Product Introduction ProcessNew Product Introduction Starts&Ends With CustomersIdeaIdeaGeneratioGeneration nIdeaIdeaSelectionSelectionNewNewProductProductDevelopmentDevelopmentNew Prod.New Prod.Launch VolumeLaunch VolumeRamp-UpRamp-UpProductProductInformatioInformation nGrowth Teams EstablishedNumber/Quantity Of IdeasStrategic ImpactMarket LeaderCore CompetencyProduct&Technology DevelopmentProduct ApplicationProduct SupportCritical Resource ConsumptionReduce Ramp-Up Cycle TimeStrong Customer DemandIncremental Revenue GenerationCritical Response Consumption26 “PRODUCT SCORECARDS”Utilized on current product linesImproving scorecards Includes ongoing improvement actions(plans)Focuses resources for maximized impact Sample Design Sigma80%+Of Production Costs Are Locked-In During Design Process80%+Of Production Costs Are Locked-In During Design ProcessNew Product Intro.:Improving The Design Process27To Be Premier,We Must:Grow the BusinessImprove Processes Across the CompanyConsistently Meet Our Financial ObligationsShare Best Practices/Lessons LearnedDrive Process IntegrationDriven To Delight Our Customers28ProductivityGreat PeopleSix Sigma ProcessesGrowthPremier-Distinctive&Successful In Everything We DoPremier-Distinctive&Successful In Everything We DoCustomer ValueNew Product DevelopmentGlobalizationAcquisitionsLean EnterpriseSupply ChainMaterials ManagementSix Sigma:Bringing The Strategy TogetherSkill Building-LearningHigh Performance Work Teams(HPWO)SimplifyEliminate DefectsReduce VariationProcess Maturity/Enterprise Resource Planning29Getting Involved With Six SigmaUnderstand Your Goals And ObjectivesUnderstand Your Role In Satisfying The CustomerDetermine Skills Needed To Improve Your ProcessLearn SkillsNetwork And Team With OthersFocus On SBU Priorities To Maximize GainsYou Will Make Us A Premier Company30谢谢观看/欢迎下载BY FAITH I MEAN A VISION OF GOOD ONE CHERISHES AND THE ENTHUSIASM THAT PUSHES ONE TO SEEK ITS FULFILLMENT REGARDLESS OF OBSTACLES.BY FAITH I BY FAITH
