Six Sigma

Implementation
Training, Tools and Success
Factors

Lorraine Daniels
Lorraine Daniels
„ Master Black Belt – 9 years
„ Ph.D. in Industrial Engineering
„ Master Instructor for Motorola University
„ Worked in electronics, banking, and information
technology
„ Independent consultant and trainer to Motorola’s
Master Black Belts, Black Belts and Green Belts
„ Co-author of “The Six Sigma Black Belt Handbook”
„ Provide same consulting and training to Motorola’s
clients – from all types of businesses and
organizations
Agenda

„ Developing a Six Sigma Culture

„ Preparing the Six Sigma Methodology
„ Using Six Sigma Metrics
„ Common Mistakes and Misconceptions
about Six Sigma
History of Six Sigma

„ Developed in 1986 by Motorola

„ Answer to quality problems
„ Shared with other companies
„ Grown in application
„ Applied in service, transactional,
government, health care and
manufacturing
 Evolution of Six Sigma
Cultural change
to improve the
business and the
financial results
Methodology to
improve the
Tool to measure ability of the
the ability of the process to
process to perform
perform
IC
DMA

TIME
Shewhart’s PDCA

Plan We will think

about Six Sigma
as a Business
Act Do Culture and
Methodology in
terms of
Planning, Doing
Check and Checking so
that we can Act
Four Examples Will Be Used
„ Compare and contrast:
… Two Divisions - of the same healthcare
company

… Two Different Companies – one in information

technology and one in manufacturing
The Six Sigma
Culture
What is a Six Sigma Company?

6σ
Top Critical Factors*

„ Leadership and commitment from the top

„ Customer is the focus of quality
improvement
„ Providing effective training for
management and employees

*From “Six Sigma: A Framework for Small and Medium-Sized

Enterprises to Achieve Total Quality”, dissertation written by
Tsung-Ling Chang (2002)
Planning a Six Sigma Culture

„ People Issues
„ Tactical Issues
„ Financial Issues
„ Communication Plans
People Issues

„ Job functions of the belts

„ Selecting people for the roles

„ Reporting structure
Planning / Doing / Checking People Issues

„ Planning
… HR needs to develop job descriptions
… Management needs to identify possible belt candidates
„ Doing
… Select people who are enthusiastic about new role
… Consider people who have a quality / process
mentality and have shown leadership potential
… Report project status to champions once a week
… Reallocate resources to free up belts from previous
duties
„ Checking
… Review number of belts and the need for more
Example Six Sigma Implementation at
Two Divisions of a Company
„ Mid-size company
„ Provides services in the healthcare
industry
„ Corporate President was enthusiastic
about Six Sigma
„ Two divisions launched Six Sigma
Bullet Points and Abbreviations

Bullet Points Abbreviations

Ï Good Idea SS = Six Sigma

Ð Bad Idea BB = Black Belt
ÎNeutral Idea GB = Green Belt
MBB = Master Black Belt
The Story of the Two Divisions
Division One Division Two
ÐPart-time;
ÐPart-time; no no ÏJob
ÏJob function
function was
was
lessening
lessening of of being
being aa BB
BB
workload
workload ÏHad
ÏHad displayed
displayed
ÐBosses
ÐBosses from
from quality
quality interest
interest
different
different divisions
divisions ÏWanted
ÏWanted to to be
be aa BB
BB
selected
selected candidates
candidates
ÐRequired
ÐRequired to to be
be aa BB
BB
Tactical Implementation Issues

„ Review format
„ Number of belts
„ Selection of key processes
„ Goal setting
Planning / Doing / Checking Tactical Issues
„ Planning
… Management team decides key process, metrics, goals,
projects
… Select people (belts) to match projects
… Establish review plan for each stage of projects
… Create Scorecards to monitor goals
„ Doing
… Communicate goals to teams
… Conduct reviews in non-threatening manner
… Ensure goals match customer requirements
… Ensure process owners are part of the projects
Planning / Doing / Checking Tactical
Issues - Continued

„ Checking
… Review team charters
… Review baseline results from projects to see
how they relate to goals
The Two Divisions
Division One Division Two
ÐReviewed
ÐReviewed only
only when
when ÏReviewed
ÏReviewed at at the
the end
end of
of
Division
Division president
president each
each phase
phase with
with
asked
asked for
for an
an update
update mentors
mentors
Î14
Î14 people
people selected
selected Ï2
Ï2 people
people selected
selected
ÏProjects
ÏProjects were
were
selected ÏProjects
ÏProjects were
were selected
selected
selected from
from from
management’s
management’s SS SS from management’s
management’s SS SS
planning
planning session
session planning
planning session
session
ÐNo
ÐNo division
division goals
goals ÏSpecific
ÏSpecific division
division goals
goals
were
were set
set were
were set
set for
for cycle
cycle times
times
and
and rework
rework
Financial Issues

„ Validation of financial savings

„ Hard vs. soft dollars
„ Budget for preparation
„ Rewards for success
Planning / Doing / Checking for Financial
Issues
„ Planning
… Budget for projects
… Include finance people in training plans
… Develop rewards / recognition strategy

„ Doing
… Include finance people on project teams
… Include financial reviews in D,M,I,C stages
… Give rewards and recognition in timely manner
Planning / Doing / Checking for Financial
Issues - Continued

„ Checking
… Review original goals to achieved goals
… Ensure rewards given are consistent with
results
Examples of Six Sigma
Implementation – For Two Companies

„ First company: Large information

technology company

„ Second company: Large manufacturing

company
The Two Companies
IT Company Manufacturing Company
ÏFinance
ÏFinance department
department ÏFinance
ÏFinance department
department
validated
validated results
results validated
validated results
results
ÐDid
ÐDid not
not get
get any
any ÏPercentage
ÏPercentage of of soft
soft
benefit
benefit for
for soft
soft dollars
dollars designated
designated
dollars
dollars as
as benefits
benefits
ÐNo
ÐNo reward
reward forfor ÏReceived
ÏReceived minimum
minimum
achieving
achieving BB BB status
status set
set dollar
dollar amount
amount forfor
or
or project
project completion
completion project
project completion
completion
ÐDeclared
ÐDeclared BB’s
BB’s asas the
the plus
plus additional
additional
only
only people
people whowho amount
amount based
based on
on
could
could be
be future
future Vice
Vice results
results
Presidents
Presidents
Communication

„ Communication methods
„ Communication frequency
„ Target audience
„ Enthusiasm
„ Involvement
Planning / Doing / Checking for
Communication

„ Planning
… Develop communication plan to include all levels of
the organization, suppliers and customers
… Decide the participation level required of
organizational groups
„ Doing
… Communicate often
… Ensure communication is consistent, constructive and
consistent
… Allow for as much involvement as possible
„ Checking
… Provide method for people to give feedback
The Two Divisions
Division One Division Two
ÐNo
ÐNo ÏAll-employee
ÏAll-employee meetings
meetings
showcased
showcased SS SS efforts
efforts
communicatio
communicatio
ÏPosters
ÏPosters around
around business
business
nn strategy
strategy displayed
displayed project
project success
success
ÏNewsletter
ÏNewsletter discussed
discussed SS SS
ÏDivision
ÏDivision president
president
consistently
consistently showed
showed
enthusiasm
enthusiasm
ÏEveryone
ÏEveryone was was encouraged
encouraged
to
to participate
participate in
in teams
teams
Six Sigma
Methodology - DMAIC
DMAIC Methodology

„ Training for DMAIC

„ Selecting / conducting projects for DMAIC
Planning for Training

„ Assess skill levels of people and compare

to those required
„ Providing projects for learning
„ Assess people for the ability to succeed
Tools

Lean / JIT Graphical

Tools Tools
Summed
together Six
Statistical
Tools = Sigma

Project
Basic Quality Management
Tools Tools
Project Management Tools

„ Charter
„ Team Building Skills
„ Communication Plan
„ Project Plan
„ Leadership
Graphical Tools

„ Used to establish potential causes of

problems
… Histograms
… Box Plots
… Pareto Plots
… Scatter Plots
… Multivari Charts
Statistical Tools

„ Used to VALIDATE causes of problems

… Comparative Methods
… Regression
… Sources of Variation
… Design of Experiments
Lean / Just-in-Time Tools

„ Value Added Analysis

„ Poka-yoke
„ Value Stream Mapping
„ 5s
„ Process Leveling
„ Standardized Work
Basic Quality Tools

„ Process Maps
„ Cause and Effect Diagrams
„ Control Charts
Training for Black Belt

„ Project management
„ Change acceleration
„ Presentation skills
„ Creative thinking
„ Statistical tools – intermediate level
„ Team building
Example Daily Activities for a Black
Belt
„ Lead a project meeting
„ Help a GB determine the right tool to use
„ Evaluate new project ideas
„ Conduct statistical analysis
„ Present improvement ideas to management
„ Meet with Champion to update project progress
„ Meet with Process Owner to sell improvement
project idea
Training for Green Belt

„ Process driven thinking

„ Basic problem solving skills
„ Basic statistical skills
„ DMAIC methodology
Example Weekly Activities for a Green
Belt
„ Attend a Black Belt meeting
„ Lead a team that is an off-shoot of a BB
team
„ Collect data
„ Meet with Champion to report progress on
project
„ Meet with BB to propose project idea
Training for an Master Black Belt

„ Leadership
„ Financial
„ Mentoring skills
„ Advanced statistical tools
„ Team facilitation skills

+ Training for Black Belt

Example Daily Activities for a Master
Black Belt
„ Attend a meeting as facilitator for a team that is
not working well
„ Update financial projections for current SS
teams
„ Identify people for training
„ Meet with upper management on corporate
goals
„ Identify key processes and process owners
„ Help a BB with more complex statistical analysis
Training for Champions
„ Leadership skills
„ Mentoring skills*
„ DMAIC methodology overview
„ Process driven thinking
„ Change acceleration

* Dissertation research from “A Case Study Analysis

of the Effects of Six Sigma Mentoring on Project
Success” by Alice Gobeille (2006) shows that
mentoring has a strong influence on project success.
Example Weekly Activities for a
Champion
„ Meet with key stakeholders to promote
BB’s improvement ideas
„ Monitor key process indicators
„ Meet with BB to review project obstacles
„ Attend a SS strategy meeting
Doing the Training

„ Start small
„ Ensure that trainers have skills to train –
not just the knowledge of the topic
„ Provide coaches to employees
The Two Divisions
Division One Division Two
ÐTrained
ÐTrained 14 14 BB,
BB, one
one ÏTrained
ÏTrained 22 BBBB
dropped
dropped out out ÏBB’s
ÏBB’s volunteered
volunteered
ÐBB’s
ÐBB’s were
were chosen,
chosen, ÏEach
ÏEach person
person had had aa
didn’t
didn’t volunteer
volunteer project
project to
to work
work on
on
ÏEach
ÏEach person
person had
had aa
project ÏHad
ÏHad experienced
experienced
project toto work
work on
on BB
ÐHad BB for
for mentoring
mentoring
ÐHad no no mentor
mentor to
to go
go
to ÏAttended
ÏAttended thethe same
same
to
Motorola
Motorola training
training
ÏHired
ÏHired Motorola
Motorola toto do
do
the
the training
training
Checking that the Training Went Well

„ Provide ways to test (certification)

„ Assess the use of different training topics
„ Check on project results
The Two Companies
IT Company Manufacturing Company
ÐStudents
ÐStudents required
required toto ÏStudents
ÏStudents took took test
test at
at
take
take test
test on
on the
the last
last their
their own
own pace
pace
day
day of
of class
class ÏTest
ÏTest took
took 88 hours
hours
ÐTest
ÐTest took
took over
over 1616 ÏCould
ÏCould do do inin multiple
multiple
hours
hours sessions
sessions
ÐRequired
ÐRequired to to do
do in
in ÎHired
ÎHired Motorola
Motorola to to do
do
one sitting
one sitting the
the testing
testing
ÎMade
ÎMade up up own
own test
test ÐDidn’t
ÐDidn’t require
require
ÏRequired
ÏRequired students
students to to students
students to to interpret
interpret
interpret
interpret analysis
analysis analysis
analysis results
results
results
results ÏStudents
ÏStudents could could see
see
ÐStudents
ÐStudents onlyonly knew
knew which
which answers
answers theythey
Pass/Fail
Pass/Fail Results
Results missed
missed
Project Selection Criteria
„ Project goals support important business goals
„ Resources are available
„ Management supports / is enthusiastic about
project
„ No solution is known
„ Data are available or could be available
„ Will produce a strong financial impact
„ Can be done in 2-6 months
 Planning for the Right Projects
„ The keys to having a successful project are:

… Establishing that the project is a business priority

… Understanding the true requirements for the
process
… Using data to tell the story
… Picking the right tool for the right situation
… Communicating the project goals, accomplishments
and successes
… Building credibility and support for the project
… Having sufficient resources to support the project
Common problems with project
selection
„ Taking on too big a project for the timeframe
„ Assigning a project where the solution is known
or proposed
„ Selecting a problem where a process doesn’t
exist
„ Selecting a problem that has never been solved
before but has been attempted several times
The Two Divisions
Division One Division Two
ÎProjects
ÎProjects were
were in
in the
the ÎProjects
ÎProjects were
were notnot in
in
area
area of
of expertise
expertise the
the area
area of
of expertise
expertise
ÐProjects
ÐProjects were
were ÏProjects
ÏProjects were
were
understaffed;
understaffed; one
one supported
supported atat every
every
project
project only
only had
had thethe level
level
BB
BB assigned
assigned toto itit ÏProjects
ÏProjects were
were self-
self-
contained
contained with
with
reasonable
reasonable goals
goals
The Two Companies
IT Company Manufacturing Company
ÐBB’s
ÐBB’s selected
selected their
their ÏProjects
ÏProjects were
were
own
own projects
projects selected
selected with
with
management
management and and
ÐProjects
ÐProjects were
were large
large MBB
MBB
ÐGoals
ÐGoals were
were ÏProjects
ÏProjects were
were well-
well-
required
required be
be at
at least
least contained
contained
$250k
$250k USD
USD ÏGoals
ÏGoals werewere set
set at
at
ÐProjects
ÐProjects did
did not
not over
over $100k
$100k USD
USD or or
have
have appropriate
appropriate were
were high
high business
business
staff
staff priorities
priorities
ÏProjects
ÏProjects usually
usually had
had
both
both aa GB
GB and
and aa BB
BB
Doing a Project
„ Select the right person to lead
„ Have two SS people work on project where
possible
„ Ensure that key stakeholders have bought in
„ Establish a communication plan
„ First meeting: Champion attends, review of SS
methodology, team guidelines set, develop
charter
Checking that the Project is Going
Well
„ Review with Champions happen on
frequent basis
„ Feedback from key stakeholders
solicited and reviewed
Project Evaluation*
„ Evaluate how project affected:
… Money saved or gained
… Time saved
… Affect on customer
„ Evaluate Three stages:
… Project definition
… Project execution
… Project delivery

* From “Importance of Training Content for Six Sigma Professionals: Perceptions

of Black Belt Trainers”, dissertation written by Bruce DeRuntz (2005)
The Two Divisions
Division One Division Two

ÐProject reviews ÏProject reviews

only occurred occurred with the
when the President BB mentor at timed
asked for updates intervals
ÐChampions of ÏBB’s met with the
projects rarely Champions bi-
asked about the weekly
projects
The Two Companies
IT Company Manufacturing Company
ÐBB’s were never ÏBB’s went through
asked about tollgate reviews
progress with management
at the end of each
phase
ÏMBB reviewed
analysis as project
progressed
Six Sigma Metrics
Garbage In – Garbage Out

Having valid
metrics can
make or
break a
project
Sigma Quality Scale
DPMO Sigma
3.4 6
230 5
6200 4 More
66800 3 complex
tools
308500 2
691500 1
Typical Project Metrics

„ Cycle time
„ Defects
„ Cost
„ Scrap
„ Efficiency
„ Accuracy
„ Sales volume
Good Metrics are….

„ Focused on the customer

„ Focused on key issues
„ Recognize variability – not just the mean
„ Valid
„ Reviewed over time
Metrics for Six Sigma Implementation
Some suggested areas to monitor with
examples:*

„ Leadership and Profitability (ROI,

Profitability)
„ Management and Improvement (Rate of
Improvement)
„ Employees and Innovation
(Recommendations per Employee)
* From The Six Sigma Black belt Handbook; Six Sigma Business Scorecard by Praveen Gupta
Metrics for Six Sigma Implementation
- Continued
„ Purchasing and Supplier Management (Total
Spent / Sales)
„ Operational Execution (Operational Cycle Time;
Defect Rate)
„ Sales and Distribution (New Business Dollars /
Total Sales Dollars)
„ Service and Growth (Customer Satisfaction;
Customer Retention)
The End of Our
Story
The End of the Story of the Two
Divisions
Division One Division Two
„„ President
President of of company
company „„ President
President ofof company
company
retired
retired retired
retired
„„ Division „„ President
President ofof division
division
Division president
president never
never had
found
found SSSS worthwhile
worthwhile had always
always been
been aa
huge
huge supporter
supporter of of SS
SS
„„ Six
Six Sigma
Sigma efforts
efforts died
died „„ Six
Six Sigma
Sigma continues
continues
„„ Two
Two of of the
the 10
10 teams
teams today
today
finished
finished their
their project
project „„ BB’s
BB’s finished
finished their
their
„„ Four
Four ofof the
the original
original projects
projects for
for certification
certification
group and
and continue
continue to to work
work
group went
went to to use
use skills
skills on
at
at other
other companies
companies on projects
projects today
today
„„ Being
Being onon aa SS
SS team
team isis
„„ SS
SS training
training isis just
just aa fond
fond considered
memory considered an an honor
honor
memory
The End of the Story for the
Two Companies
IT Company Manufacturing Company
„„ Two
Two years
years after
after „„ Three
Three years
years after
after
launching
launching SS
SS –– launching
launching SS,
SS, projects
projects
no
no one
one had
had been
been have
have been
been completed
completed byby
certified
certified all
all BB’s
BB’s and
and most
most GB’s
GB’s
„„ Average
Average GB GB ++ $268k
$268k
(range
(range from
from $20k
$20k toto
$641k)
$641k)
„„ Average
Average BB BB == $643k
$643k
(range
(range from
from $450k–
$450k–
$880k)
$880k)
Six Sigma
Misconceptions or
Mistakes
Six Sigma Misconceptions or
Mistakes
„ We need to train lots of people right away
„ Six Sigma projects need to take a long
time
„ Black Belts are an elite group with a secret
language
„ We should give the BB a project with a
goal that no one has been able to achieve
Six Sigma Misconceptions or
Mistakes - Continued
„ Launching a SS project with the goal of
reducing head count
„ Thinking that the statistical analysis will be
the hard part of the project
„ SS can only be applied in manufacturing
„ SS can only be applied in high volume
businesses
Six Sigma Misconceptions or
Mistakes - Continued
„ Thinking that training is the end – not the
means
„ Asking how many BB’s and GB’s should
we train
„ Calling it “Six Sigma” doesn’t make it Six
Sigma
„ Calling it something else, doesn’t make it
less Six Sigma
Research on Critical Success
Factors*
„ Previous adoption of SPC or Lean has a
moderate influence on success
„ CEO’s enthusiasm, full and continued support,
highly visible support has strong influence on
success
„ Project selection has strong influence on
success,
„ Education level, engineering background is not
important

*From “Critical Success Factors of Six Sigma Implementation and the Impact
on Operations Performance”, dissertation written by Kuo-Liang Lee (2002)
Research on Critical Success Factors
- Continued
„ However, BB with project management skills,
managing teams, communication skills, ability to
inspire others to excel and being a good presenter
are very important
„ New BB's can be as successful as experienced BB
„ Full-time is not significantly different from part-time
BB’s (as judged by costs) but have higher
completion rates
„ Teamwork training, project management training,
problem solving training are equally important to
statistical tool training
Research on Critical Success Factors
- Continued
„ Customer complaints, customer retention and
warranty claims are improved after SS
implementation
„ There is a positive change in employee attitude
„ No difference between large and small, medium
sized companies in SS success
„ Frequency in communication between
Champion and BB has significant impact on
success
What a Six Sigma Company Means to Me

„ An organization that uses data, where

feasible, to make decisions
„ With well-supported projects, whether it
has one project or 100 going on at one
time
„ With a focus on the customer and financial
results
Assessment of a Six Sigma
Implementation
„ Key stakeholders / management 1 2 3 4 5
support SS efforts
„ Key stakeholders / management 1 2 3 4 5
set goals that are related to
business objectives
„ SS way of thinking is evident in 1 2 3 4 5
how we do everything
„ SS efforts are funded – not just 1 2 3 4 5
the training

1 = Not Doing; 2 = Doing Poorly; 3 = Doing a Fair Job;

4 = Doing a Good Job; 5 = Doing an Excellent Job
Assessment of a Six Sigma
Implementation - Continued
„ Our suppliers are part of our SS 1 2 3 4 5
efforts
„ Our customers are part of our SS 1 2 3 4 5
efforts
„ We regularly get feedback from our 1 2 3 4 5
customer chain and incorporate that
feedback into our goal setting
„ Everyone in the organization 1 2 3 4 5
understands the corporate goals
„ We share SS successes within the 1 2 3 4 5
organization
Assessment of a Six Sigma
Implementation - Continued
„ People know where to go for 1 2 3 4 5
support in their SS efforts
„ We have an organized 1 2 3 4 5
method for project selection
„ Using data to make decisions 1 2 3 4 5
is part of the way we do
business, as well as part of
our projects
„ Rewards and Recognitions 1 2 3 4 5
have been identified