Resources and Aspects of Six-Sigma

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Resources and Aspects of Six-Sigma
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Programme

• ENBIS and Pro-ENBIS
• ISRUs support for Six-Sigma
• The Words of Soren Bisgaard
• The Words of Ron Kennet
• The Main Speakers
• Irena Ograjensek
• - Opening the Toolbox!
• Tony Greenfield
• - Statistical Methods in Business and Industry

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Dave Stewardson - ISRU Soren Bisgaard -
University of Amsterdam Ron Kennet - KPA Israel
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ENBIS European Network for Business and
Industrial Statistics www.enbis.org
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ENBIS

• Big supporters of Six-Sigma throughout Europe

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Vision
- To promote the widespread use of applied
statistical methods in European business and
industry, - Membership - statistical
practitioners from business and industry, -
Multidisciplinary problem solving - To
facilitate the rapid transfer of statistical
knowhow - Web-based
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Organisation
Working groups

• Design of experiments
• Reliability and safety
• Data mining / warehousing
• General statistical modelling

• Process modelling and control
• Quality improvement
• Statistical consultancy

Local networks

• bENBIS (Belgium)
• nENBIS (Netherlands)
• iENBIS (Israel)

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Organisation

• No membership fee (for the time being)
• 565 members (September, 2002)

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Membership benefits

• ENBIS offers
• Network facilities
• Conferences
• Courses
• Thematic network Pro-ENBIS

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www.enbis.org
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Pro-ENBIS
Aims include Start a European Training
Network Found European Measurement System Audit
Draft new European Journal - web-based Inorgorate
a European Business-to-Business Mentoring
Scheme Publish a State-of-the-Art report on the
use of Industrial Statistics in Europe Access
further funding to promote ENBIS
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Pro-ENBIS
Training Network now has more than 50
participants Push to help implement Six-Sigma
throughout Europe - this is a massive
resource. Including the non-EC states!
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Pro-ENBIS
Planned Workshops for 2003 Sardinia alongside
DEINDE conference on Designed experiments -
February Maastrict (Netherlands) alongside ESREL
reliability conference - June Currently planning
UK based Workshop
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Pro-ENBIS industrial visits
Siemens Electric Heating ASBratsbergvegan
5N-7493TRONDHEIMNorway 21/6/2002 Tel No 47
73 95 90 00
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ENBIS team
Jon Tyssedal, tyssedal_at_math.ntnu.no Professor of
Statistics, NTNU Expert in Statistics Maria
Fernanda Ramalhoto, framalhoto_at_math.ist.utl.pt Pro
fessor of Statistics,Instituto Superior Tecnico,
Lisbon Expert in Reliability and Quality
Improvement Ron Kenett, ron_at_kpa.co.il Internation
al Management Consultant, CEO KPA Ltd. Expert in
Industrial Statistics and Quality Management
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Six-Sigma and ReliabilityFor Nestle

• Dave Stewardson - ISRU with
• Froydis Berke - Matforsk Norway
• Soren Bisgaard - USA
• Poul Thyregod - Denmark
• Bo Bergman - Sweden

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ISRUs Support for Six-Sigma
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Hands-on Support for Champions Black-Belts and
Master Blackbelts Full Six-Sigma programme from
October - Black Belt - Green Belt - Yellow Belt -
training and support This is VERY market /
customer driven Plus - access to on-line support
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Keys to Success Mark II
1. Need to overcome demands on peoples time 2.
Need to overcome reluctance to try new methods -
fear of failure 3. Must be allowed to discover
that the key methods are self correcting! In
other words - you cant really fail at all
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ISRU - On-Line Modules
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ISRUs Courses

• ISRU have 3 certified courses available on
  Blackboard
• DoE (Design of Experiments)
• MQT (Modern Quality Tools)
• SPC (Statistical Process Control)

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Soren BisgaardLeading Industrial Statistician

• Extract from Presentation

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The Success of Change Programs?
Performance improvement efforts have as much
impact on operational and financial results as a
ceremonial rain dance has on the weather
Schaffer and Thomson, Harvard Business Review
(1992)
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Change ManagementTwo Alternative Approaches
Activity Based Programs
Change Management
Result Oriented Programs
Reference Schaffer and Thomson, HBR, Jan-Feb.
1992
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Activity Centered Programs

• Activity Centered Programs The pursuit of
  activities that sound good, but contribute little
  to the bottom line
• Assumption If we carry out enough of the right
  activities, performance improvements will follow
• This many people have been trained
• This many companies have been certified
• Bias Towards Orthodoxy Weak or no empirical
  evidence to assess the relationship between
  efforts and results

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An Alternative Result-Driven Improvement
Programs

• Result-Driven Programs Focus on achieving
  specific, measurable, operational improvements
  within a few months
• Examples of specific measurable goals
• Increase yield
• Reduce delivery time
• Increase inventory turns
• Improved customer satisfaction
• Reduce product development time

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Result Oriented Programs

• Project based
• Experimental
• Guided by empirical evidence
• Measurable results
• Easier to assess cause and effect
• Cascading strategy

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Why Transformation Efforts Fail!

• John Kotter, Professor, Harvard Business School
• Leading scholar on Change Management
• Lists 8 common errors in managing change, two of
  which are
• Not establishing a sense of urgency
• Not systematically planning for and creating
  short term wins

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Six Sigma Demystified

• Alignment of customers, strategy, process and
  people
• Significant measurable business results
• Large scale deployment of advanced quality and
  statistical tools
• Data based, quantitative

Adapted from Zinkgraf (1999), Sigma Breakthrough
Technologies Inc., Austin, TX.
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Keys to Success

• Set clear expectations for results
• Measure the progress (metrics)
• Manage for results

Adapted from Zinkgraf (1999), Sigma Breakthrough
Technologies Inc., Austin, TX.
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Six Sigma

• The precise definition of Six Sigma is not
  important the content of the program is
• A disciplined quantitative approach for
  improvement of defined metrics
• Can be applied to all business processes,
  manufacturing, finance and services

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Focus of Six Sigma

• Accelerating fast breakthrough performance
• Significant financial results in 4-8 months
• Ensuring Six Sigma is an extension of the
  Corporate culture, not the program of the month
• Results first, then culture change!

Adapted from Zinkgraf (1999), Sigma Breakthrough
Technologies Inc., Austin, TX.
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Six Sigma Reasons for Success

• The Success at Motorola, GE and AlliedSignal has
  been attributed to
• Strong leadership (Jack Welch, Larry Bossidy etc.
  personally involved)
• Initial focus on operations
• Aggressive project selection (potential savings
  in cost of poor quality gt 50,000/year)
• Training the right people

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Ron KennetRising Industrial Statistician

• Extract from Presentation

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General Electric

• In 1995 mandated each GE employee to work
  towards achieving 6 sigma
• The average process at GE was 3 sigma in 1995
• In 1997 the average reached 3.5 sigma
• GEs goal is to reach 6 sigma by 2001
• Investments in 6 sigma training and projects
  reached 45MUS in 1998, profits increased by
  1.2BUS

the most important initiative GE has ever
undertaken.
Jack Welch Chief Executive Officer General
Electric
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MOTOROLA
At Motorola we use statistical methods daily
throughout all of our disciplines to synthesize
an abundance of data to derive concrete
actions. How has the use of statistical methods
within Motorola Six Sigma initiative, across
disciplines, contributed to our growth? Over the
past decade we have reduced in-process defects by
over 300 fold, which has resulted in a cumulative
manufacturing cost savings of over 11 billion
dollars.
Robert W. Galvin Chairman of the Executive
Committee Motorola, Inc.
From the forward to MODERN INDUSTRIAL STATISTICS
by Kenett and Zacks, Duxbury, 1998
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The Six Sigma Initiative integrates these efforts
Problem Solving Teams
SPC
Improvement Teams
Strategic Planning
ISO 9000
Knowledge Management
DOE
Benchmarking
ISO 14000
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How is Six Sigma deployed? Six Sigma is deployed
via project teams launched and supported by Black
Belts. Projects can be of different size and
duration. We define projects asa structured and
systematic approach to achieving Six Sigma levels
of improvement. Depending on the scope of the
project, they can be defined as Business
Process Projects large-scale improvement of a
business process that extends across an
organization. For example, order taking. Six
Sigma Quality Improvement Project aimed at
solving chronic problems crossing multiple
functions of an organization. Work Team
Project a project within one department.
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Black Belt training program

• 6 sigma principles
• Quality Improvement
• Quality by Design
• Quality Control
• Teamwork
• Effective presentations
• QFD/VOC
• Statistical thinking
• Process mapping
• Barriers to breakthroughs
• JMP, MINITAB..

• Gage RR
• SPC
• SPC Strategy
• Risk Management
• FMEA
• Statistical Inference
• Design Of Experiments
• DOE Strategy
• Bootstrapping
• Robust Designs
• System Thinking

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Barriers to implementation
Barrier 1 Engineers and managers are not
interested in mathematical statistics Barrier 2
Statisticians have problems communicating with
managers and engineers Barrier 3
Non-statisticians experience statistical
anxiety which has to be minimized before
learning can take place Barrier 4 Statistical
methods need to be matched to management style
and organizational culture
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MBB
Master Black Belts
BB
Statisticians
Black Belts
Technical Skills
Quality Improvement Facilitators
Soft Skills
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The 6 Sigma Project Structure
MBB
BB
KPA ISRU ENBIS
BB
BB
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The right way!

• Plan for quick wins
• Find good initial projects - fast wins
• Establish resource structure
• Make sure you know where it is
• Publicise success
• Often and continually - blow that trumpet
• Embed the skills
• Everyone reports success

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Pro-Enbis
All joint authors - presenters - are members of
Pro-Enbis and ENBIS. This presentation is
supported by Pro-Enbis a Thematic Network funded
under the Growth programme of the European
Commissions 5th Framework research programme -
contract number G6RT-CT-2001-05059