Transcript Slide 1

PMI-MN Breakfast Meeting
Tuesday, March 14th, 2006
Show Me The Business Value
Discover Lean Six Sigma “Best Bets”
for Tangible Improvements Part 2
Presented by: Michelle Goodman
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© 2005 trissential. All Rights Reserved.
[email protected]
3 Part Series Agenda
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Lean Six Sigma and the Big Picture - Part 1
– What Exactly is Lean Six Sigma?
– Corporate Deployments
– Big is Not Always Better
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Individual Execution – Part 2
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Project or Activity Selection and Scoping
Resource Utilization
Metrics & Results
Personal Corporate Citizenship
Beyond the office area – Part 3
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Best Bets in non-traditional business environments
Working with vendors and business partners
What to do with the uninitiated?
How can my community work benefit?
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© 2005 trissential. All Rights Reserved.
Lean Six Sigma Is the Integration of Two
Powerful Business Improvement Approaches...
Six Sigma
Culture+Quality
Lean
Speed+Low Cost
• Goal – Reduce waste and
increase process speed
• Goal – Improve performance on
Customer CTQs
• Focus – Bias for action/
Implementing known solutions
• Focus – Root Cause Analysis/
Developing Solutions
• Method – Kaizen events
• Method – Black Belts dedicated
to projects
Lean Speed Enables
Six Sigma Quality
Six Sigma Quality Enables
Lean Speed
(Faster Cycles of
Experimentation/learning)
(Fewer Defects Means
Less Time Spent on Rework)
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© 2005 trissential. All Rights Reserved.
Michelle’s definition of a “Best Bet”
 Does not require a LSS program
 Does not require LSS certification
 Applicable in various business environments
 Has merit on individual basis
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Project or Activity
Selection and Scoping
Individual Execution
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Know the Heartbeat
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Plan and execute in 90 day cycles
Be aware of prevalent political agendas
Tap into someone’s passion – sponsorship
First choose the visible – the rest will
follow
• WIIFM – What’s In It For Me?
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Project Selection and Scoping
• Have a Written Plan
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Timelines & Deliverables
Shows commitment and dedication
Tangible plan for leaders to track and share
Easy to incorporate into divisional and individual
objectives and reviews
– Drives sense of urgency
– Represents your ability to contribute value
through project management skills
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Resource Utilization
Individual Execution
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Lean & Six Sigma Tools
Define
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Project ID Tools
Project Definition Form
Value of Cycle Time
Net Present Value
Analysis
Internal Rate of Return
Analysis
Discounted Cash Flow
Analysis
PIP Management Process
RACI
Quad Charts
Measure
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Process Mapping
Value Stream Mapping
Process Cycle Efficiency
Lean Six Sigma Metrics
Process Sizing
Kaizen Events
Multi-Voting Techniques
Pareto Charts
C&E/Fishbone Diagrams
FMEA
Check Sheets
Run Charts
Control Charts
Gage R&R
Subjective Measurement
Systems
Analyze
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Cp & Cpk
SupplyChainAcceleratorSM
Time Trap Analysis
Analytical Batch Sizing
Multi-Vari
Box Plots
Interaction Plots
Regression
ANOVA
C&E Matrices
FMEA
Improve
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Control
Brainstorming, Affinity
Benchmarking
Kaizen Events
Pull Systems
• Generic
• Replenishment
Part Stratification
Setup Reduction
TPM, 5S
Process Flow
Line Balancing
DOE
Hypothesis Testing
Force Field
Tree Diagrams
Gantt Charts
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Check Sheets
Run Charts
Histograms
Scatter Diagrams
Control Charts
Visual Control Tools
Poka-Yoke
Pareto Charts
Interactive Reviews
© 2005 trissential. All Rights Reserved.
Desirable Characteristics…….
Not just for Black Belts
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Team Facilitation – Strong ability to lead effective teams
Problem Solving – Proven orientation to be a problem solver
Process Orientation – Demonstrated ability to understand and
identify process vs. functions
Change Facilitation – Demonstrated ability to drive change across
functional boundaries
Communication Skills – Ability to engage a wider audience
through a variety of media, but including presentation
Computer Knowledge – Ability to effectively utilize technology,
including Microsoft Office applications, or applicable, and the web
Financial Skills – Ability to understand basic financial documents
(I.e Income statement and balance sheet) and develop project
based cost/benefit analysis
Program and Project Management – Ability to develop a workplan
and actively lead a team through it’s completion
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© 2005 trissential. All Rights Reserved.
Know the Heartbeat
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Fewer people – better engagement
WIIFM Factor – who has the most to gain?
SMEs – best utilized in small doses
Focused work on fewer subjects (Little’s Law)
It’s not always about capital spending
Give a solid cost/benefit case – funding will
follow
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Comprehensive Communication
• Be your own PR whiz, because it is about buzz,
motivation, and excitement
• If they don’t know, they can’t support you
• Stakeholder communication – your strongest
(but most underutilized) asset
• A written plan speaks the loudest
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Metrics & Results:
Think Data and Process
Individual Execution
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What if I’m not a Finance Specialist?
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Introduce proposed costs/benefits
Remember the 90 day rule!
Detail the measurement approach
Make it concise and user friendly
Establish baseline
Follow through on status reports
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Types of Benefit Measures
Process Requirements Measures
• Quality
• Speed or Cycle Time
• Cost or Efficiency
• Safety
• Regulatory Compliance
Financial Measures (measured in dollars)
• Revenue Improvement
• Cost Reduction
• Asset Reduction
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Types of Financial Benefits
• Revenue Growth
– Volume increases
– Price increases
• Cost Reductions
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Purchased items and services
Waste elimination
Make vs. Buy
Labor reduction
Productivity improvements
Scrap/Rework reductions
• Working Capital Reduction
– Inventory
– Receivables
– Fixed asset reduction
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Keep the information flowing
• Report on Key Performance Indicators (KPIs)
– formal or informal*
• $$ Savings
• Revenue Increase
• Customer satisfaction / loyalty
(internal or external)
• Risk Management Success
• Project duration reduction
• ROI
• Break-Even Point
• IRR
• Resource Utilization Levels
• Give your boss or sponsor something
good to talk about
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Personal Corporate
Citizenship
Individual Execution
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Celebrate Success
• Give Recognition and Acknowledgement
– Key Milestones and accomplishments that are truly
deserving
– Highlight benefits and value to organization
– Be generous in sharing acknowledgments
– Inclusive rather than exclusive
– Make sure to reach beyond the
“car-ride employees”: (sales,
decentralized locations, customers,
suppliers, overseas, etc.)
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Individual Contributions
• Research and Introduce Best Practices
– Keep up with industry news and research
– Utilize PMI’s and other professional associations’
resources fully
– Represent your company at events, summits, conferences
– Introduce new practices as appropriate through various
company communication channels
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Individual Contributions
• Internal Collaboration
• Embrace and be knowledgeable about a variety
of methodologies
• Help stakeholders understand how various
project tools, reporting requirements, teams, and
methods can work together and enhance results
• Work with leaders to identify possible
discrepancies or redundancies and propose
solutions for bridging these differences
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© 2005 trissential. All Rights Reserved.
Individual Contributions
• External Collaboration
– Create a “Pull environment” where customers,
suppliers, and vendors are requesting to work
with a professional with your skill sets
– Be active in professional associations for your
networking and skills enhancement
– Volunteer your skills in your community
– Participate on Company outreach teams
and boards
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© 2005 trissential. All Rights Reserved.
Sneak Peek
•
Lean Six Sigma and the Big Picture - Part 1
– What Exactly is Lean Six Sigma?
– Corporate Deployments
– Big is Not Always Better
•
Individual Execution – Part 2
–
–
–
–
–
•
Project or Activity Selection and Scoping
Resource Utilization
Comprehensive Communication
Metrics & Results
Personal Corporate Citizenship
Beyond the office area – Part 3
–
–
–
–
Best Bets in non-traditional business environments
Working with vendors and business partners
What to do with the uninitiated?
How can my community work benefit?
23
© 2005 trissential. All Rights Reserved.
Conclusion
Michelle Goodman, MBA, PMP
Senior Process Consultant
O 952-595-7970
C 651-261-9422
[email protected]
www.trissential.com
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© 2005 trissential. All Rights Reserved.