How to Deploy Six Sigma

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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 1
 Keys to Success
Management support &
participation
Sufficient resources
Data-driven decision making
vFocus on value to customer
Measurement & feedback

Developed & distributed by Based on Six Sigma Demystified (Keller, 2011)

How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 2
 Management Support &
Participation
Integrated into business strategy
Executive staff leads program
vMotorola: $7M wasted by bottom-up
training
vGEs Welch to management: Youve
got to be passionate lunatics about the
quality issue This has to be central to
everything you do every day. Your
meetings. Your speeches. Your
reviews. Your hiring
Developed & distributed by Based on Six Sigma Demystified (Keller, 2011)
How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 3
 Leadership Role
Six Sigma program development
vInitial deployment
vInfrastructure for on-going efforts
vApply DMAIC at Business Level
Manage organizational support
vExposure and endorsement
vRealize organizational objectives
through on-going project selection &
sponsorship
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 4
 Sample Deployment Schedule
(ref: Six Sigma Handbook Figure 1.3)

Developed & distributed by Based on Six Sigma Demystified (Keller, 2011)

How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 5
 Initial Deployment Priorities
Define Project Selection,
Assignment & Approval Criteria
Select & Train Deployment Team
v Champions, Black & Green Belts
v Initial project selection
Market program to organization
v Motivate & engage mid-management

Developed & distributed by Based on Six Sigma Demystified (Keller, 2011)

How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 6
 DMAIC at Business Level
Develop strategic solutions
vmarket penetration
vbusiness profitability
vemployee retention
vcustomer-base retention or growth
vpurchasing or selling business units
Longer-term projects broken into
operational-level projects

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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 7
 Business Level DEFINE
Develop business-level projects
focused on key strategic objective
Examples:
vIncrease Inventory Turnover by 30%
vReduce product time to market
vImprove Overall Equipment Eff. 15%
vHR Challenges in Implementing Six
Sigma Program
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 8
 Business Level MEASURE
Establish baselines for business-
level metrics related to customer,
employee and shareholders
vCustomer Surveys, Interviews,
Focus-Groups
vOperational Data
vEmployee Assessments
Map value streams
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 9
 Business Level ANALYZE
Establish relationship between
metric and internal processes
vKey cost of quality opportunities
vQuality Function Deployment (QFD)
Data Mining
vBuying patterns; profitability factors
Competitor Analysis/Benchmark
Organizational barriers to success
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 10
 Business Level IMPROVE
Deploy specific projects at
operational & process levels
Implement tracking & feedback
systems to monitor & disseminate
the benefits & opportunities
Policy Changes

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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 11
 Business Level CONTROL
Developing support infrastructure
for continued program growth
vProject management & feedback
vTracking of metrics
Communication throughout
organization
vTraining

Developed & distributed by Based on Six Sigma Demystified (Keller, 2011)

How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 12
 Test Yourself:
Management Involvement
Managers can have the most positive impact on
Six Sigma deployment by:
a. Delegating program development to Black Belts
b. Sponsoring projects to accomplish
organizational objectives
c. Limiting their personnel to projects that impact
their direct budgets
d. All of the above, plus vocal support

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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 13
 Success: Resource Allocation
Full-time Change Agents
vBlack Belts (1% employees)
vMaster Black Belts (0.1%)
Part-time Change Agents
vGreen Belts (10% - 100%)
vAd-hoc Team members
Processes, labor, material diverted
for focused data collection or
experimentation
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 14
 Black Belts
Trained in problem-solving &
change-management techniques.
Full time Change Agents
vFour to seven projects per year
v$150, 000 to $250,000 per project.
Master Black Belts
vCoach and mentor BB
vExperts in advanced statistical analysis
methods and/or change management
techniques
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 15
 Green Belts
Trained in basic SS concepts:
vProject management, team building,
basic problem solving.
Serve as process experts on
projects affecting functional area
Maintain operational role
Generally lack in-depth training &
available time to lead projects
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 16
 Green Belts as Project Leaders
Can be effective when:
vCollege-educated Green Belt w/
project management experience
vExperienced Black Belt on team
vGreen Belt relieved of operational
duties on temporary basis
o Difficult to manage
Preferred: Fulltime Black Belt
leads projects
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 17
 Project Sponsors
Champions serve as Project
Sponsors.
vFund project, allocate resources
vWith BB: defines scope, deliverables
vBuilds buy-in at upper levels
vClears road blocks at lower levels
Multi-functional Projects
vSponsor from level above functional
managers, or use Co-Sponsors
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 18
 Success: Data Driven Decisions
Proper decision making analysis
Including project selection,
solutions, incentives, resource
allocation, etc.
Avoid crisis du jour
Be faithful to DMAIC problem
solving
Define, Measure, Analyze, Improve,
Control
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 19
 Process Data in Context
Error Rate

Has process Jan

error rate Feb

decreased in
Mar
March?
0 50 100 150 200 250
Number of Units

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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 20
 Understanding Process Data
SPC Control Chart provides context

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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 21
 Success: Measurement &
Feedback
Customer feedback of impact
Continuous flow of information
Local control & empowerment
Customer service enhanced w/data
Categories of metrics
Critical to Quality (CTQ)
Critical to Schedule (CTS)
Critical to Cost (CTC)
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 22
 Big Ys and Little-ys
Big Ys & Little ys = your metrics
vBig Ys provide the big picture
vLittle-ys provide the details
Each Big Y driven by a set of Little y
through a transfer function
Y1 = function of {y1, y2, . . ., yi}
Y2 = function of {y1, y2, . . ., yj}

Yn = function of {y1, y2, . . ., yk}
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 23
Flow-down of Big Ys & Little-ys
(source: Six Sigma Deployment by Paul Keller, QA Publishing, LLC. 2001)
Operational
Metrics
Stakeholder
Metrics

Business
Process
Level Metrics
Matrix
Operations
Operational Level
Metrics
Key: Process
Drivers
Matrix
Little ys Process
Big Ys

Process
Metrics
Org. Level
Level Matrix
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 24
 Big Ys at the Business Level
(source: Six Sigma Deployment by Paul Keller, QA Publishing, LLC. 2001)

Business Level Big Ys:

vUsed as Dashboard Metrics
vRelate to key stakeholder groups
o Customer, Shareholder, Employee
vExample: Restaurant Big Ys:
o Y1 = Satisfaction Score
o Y2 = Customer Retention Rate
o Y3 = Cost of Poor Quality
o Y4 = Sigma Level
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 25
 Flow-down to Operations Level
(source: Six Sigma Deployment by Paul Keller, QA Publishing, LLC. 2001)

Business-level Big Ys broken into

Little ys
vBig Ys provide high-level view, but
not enough detail for improvement
vCustomer feedback relates Business
Level Big Ys to Little-ys
Business Level Little-ys become
Operations Level Big Ys
Developed & distributed by Based on Six Sigma Demystified (Keller, 2011)
How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 26
 Big Ys at Operations Level
(source: Six Sigma Deployment by Paul Keller, QA Publishing, LLC. 2001)

Each Business Level Big Y is

broken down:
vCustomer Satisfaction function of
o Service Quality
o Culinary Satisfaction

o Restaurant Availability

o Pricing,

Operations Level Big Ys useful for

project selection criteria
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Quality America, Inc. rev2014.1
Based on Six Sigma Demystified (Keller, 2011)
How To Deploy Six
Copyright McGraw-Hill Companies, Inc.
Sigma 27
 Flow-down to Process Level
(source: Six Sigma Deployment by Paul Keller, QA Publishing, LLC. 2001)

Operational Level
vEx: Service Quality function of:
o Wait Time
o Friendliness of Staff

o Cleanliness of Facility

o Order Accuracy,

Operations Level Little-ys become

Process Level Big Ys.
vUseful for Process Level Metrics
Developed & distributed by Based on Six Sigma Demystified (Keller, 2011)
How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 28
 Big Y / Little-y at Process Level
(source: Six Sigma Deployment by Paul Keller, QA Publishing, LLC. 2001)

Process Level Big Ys / Little ys

vEx: Wait Time function of:
o Cycle Time for Cooking
o Number of Staffed Registers
o Time of Day,

Resulting Little-ys used for:

vprocess optimization
vvariation reduction
vSix Sigma project metrics
vmetrics for on-going process control
Developed & distributed by Based on Six Sigma Demystified (Keller, 2011)
How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 29
 Management Dashboards
Key business-level metrics only
vStrong correlation to quality,
performance & customer satisfaction
Provide real-time feedback
vOrg. baseline; improvement feedback;
data driven decisions
Present a clear graphical display
vDrill-down for detail
Language of new culture
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 30
 Dashboard Metrics: Examples
(source: Six Sigma Deployment by Paul Keller, QA Publishing, LLC. 2001)

Customer Retention/Growth Rate

Sigma Level/DPMO/Quality Costs
Inventory Turns
% Shipments Past Due
Employee Retention Rate
Earnings per Share
Working Capital Turns
Overall Equipment Efficiency
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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 31
Results of Effective Feedback
Empowered employees
vRecognize impact of decisions
Employees continuously
improve processes with eye on
system-wide improvements
Improved Customer, Employee
& Shareholder satisfaction

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How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 32
 Test Yourself:
Deployment Responsibilities
All levels of management must commit to Six
Sigma because:
a. Resources are needed for successful projects
in reasonable timeframe
b. Project teams need authority vested by
management sponsor
c. Projects need to focus on critical business
needs
d. All of the above.

Developed & distributed by Based on Six Sigma Demystified (Keller, 2011)

How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 33
 Managing for Six Sigma
Summary
Walk the Talk; Lead
Develop & support meaningful
projects
Allocate sufficient resources
Use data effectively
Measure, provide feedback &
improve the system
Developed & distributed by Based on Six Sigma Demystified (Keller, 2011)
How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 34
 Workshop
Using groupings from earlier
Workshop:
vDevelop Matrix Diagram to
show how well deployment
strategies meet issues
identified.
vDiscuss how outliers (if any)
can be addressed
Developed & distributed by Based on Six Sigma Demystified (Keller, 2011)
How To Deploy Six
Quality America, Inc. rev2014.1 Copyright McGraw-Hill Companies, Inc.
Sigma 35