You are on page 1of 23

Six Sigma Overview

October 13, 2003

Don Carlson
Technology & Operations
Enterprise Solutions

Agenda

What is Six Sigma?


Why Six Sigma?
Why Six Sigma at Bank of America?
Connection to Strategy.

The Many Facets of Six Sigma

Metric
Benchmark
Vision
Philosophy
Method
Tool
Symbol
Goal
Value

More About Six Sigma


Six Sigma Was Developed at Motorola in the
1980s As a Method to Improve Process Quality.
It Was First Used to Improve Manufacturing
Process Capability and Then Migrated to
Business Processes Capability
Companies That Have Deployed Six Sigma:
Bank of America, Motorola, GE, IBM, Kodak
and Many More
The Basic Premise Is, All Processes Have
Variation. Variation Is the Enemy.

What is the Six Sigma Philosophy?

Science

We dont know what


we dont know.

Six Sigma

If we cant measure
it, we really dont
know much about it.

Art

If we dont know
much about it, we
cant control it.

Magic

If we cant control it,


we are at the mercy
of chance.

Focus
Focus on
on the
the Customer!
Customer!

What Is Six Sigma?


Know

Whats Important
to the Customer (CTQ)

Reduce
Center

Defects (DPMO)

Around Target

(Mean)
Reduce

Variation
(Standard Deviation)

GE Company Proprietary
November 1998

Process Philosophy

Six Sigma as a Goal

Defects
Defectsper
per
Million
Million
opportunities
opportunities

308,537

66,807

4
5
6

6,210
233
3.4

Process
Process
Capability
Capability

Sigma is a statistical unit of measure which


Reflects process capability.

Six Sigma -- Practical Meaning


99% Good (3.8 Sigma)

99.99966% Good (6 Sigma)

20,000 lost articles of mail per


hour

Seven articles lost per hour

Unsafe drinking water for


almost 15 minutes each day

One unsafe minute every seven


months

5,000 incorrect surgical


operations per week

1.7 incorrect operations per week

Two short or long landings at


most major airports each day

One short or long landing every


five years

200,000 wrong drug


prescriptions each year

68 wrong prescriptions per year

No electricity for almost seven


hours each month

One hour without electricity


every 34 years

Dissecting Process Capability


Premise of 6 Sources of variation can be:
Identified
Quantified
Eliminated or Controlled
Inadequate
Process
Capability

Defects

Unstable Parts &


Materials

LSL

Inadequate
Design
Margin

USL

Acceptable

Process Capability

Defects

The Strategy
USL

LSL

Characterize

Optimize

Breakthrough

USL

LSL

USL

LSL

T
LSL

USL

Customer Focused - Both Internally & Externally

Agenda

What is Six Sigma?


Why Six Sigma?
Why Six Sigma at Bank of America?
Connection to Strategy.

What is Cost of Poor Quality?


In addition to the direct costs associated with finding and
fixing defects, Cost of Poor Quality also includes:

The hidden cost of failing to meet customer expectations the first


time
The hidden opportunity for increased efficiency
The hidden potential for higher profits
The hidden loss in market share
The hidden increase in production cycle time
The hidden labor associated with ordering replacement material
The hidden costs associated with disposing of defects

For most companies today, the cost of poor quality is likely


to be 25 % of sales.
In almost every company where the COPQ is unknown, the
COPQ exceeds the profit margin.

Which Business Function Needs It?


SERVICE

ADMIN.

DESIGN

PURCH.
6 Sigma
Methods

QA

Marketing

MFG.

MAINT.

As long as there is a process that produces an output, whether it is


a manufactured product, data, an invoice, etc, we can apply the
Six Sigma Breakthrough Strategy. For these processes to perform
to a customer standard they require correct inputs!!!

Ken Lewis Vision


Why Six Sigma?
Six Sigma will enable Bank of America to make the
breakthrough improvements in customer satisfaction and
shareholder value that we must achieve to reach our goal of
becoming one of the worlds most admired companies. Thats
why Im committed to using it as a performance management
discipline throughout our company.
Ken Lewis, Chairman and Chief Executive Officer
Bank of America

Agenda

What is Six Sigma?


Why Six Sigma?
Why Six Sigma at Bank of America?
Connection to Strategy.

Strategic
Alignment
From
Strategy
to
Action
Hoshin Plan
Hoshin Strategy
1.1 Provide a world-class customer/client experience through easy
access and efficient, error-free service

2nd Draft

Bank of America
Ken Lewis, Chairman and CEO

Breakthrough Strategies

1.1 Provide a world-class custo mer/client experience


through easy access and efficient, error-free service

C. Goslee / B. De soer

Pro vider of Choice


92% Customer Satisf action

1.2 Attract and reta in profitab le customers/clientsand


continuously rewa rd them for keeping and bringing more
of their business to us G. Taylor / R. DeMartini / A. Brinkley
E. Brown

1.3 Become the trusted ad visor for financial solutions


R. DeMartini
E. Brown

1.4 Develop and deliver inn ovati ve new produ cts and
solutions which make f ina ncial services work in ways it
never has before
A. Brinkley / B. Desoer
E. Brown

S. Alphin

B. Desoer

2.4 Enable Asso ciates to achieve professional growth


balanced with personal goals
B. Desoer
2.5 Reflect the d iversity of the communities and customers
S. Alphin
we serve in our work force

%
S
a
tis
fa
c
tio
n

%
S
a
tis
fa
c
tio
n

%
S
a
tis
fa
c
tio
n

P
e
rc
e
n
tS
a
tis
fa
c
tio
n

%
S
a
tis
fa
c
tio
n

Customer Segment MBF Customer Segment Root Cause


P
R
L
E
T
M
E
N
aBskret'nuas
a
g
eB
gartevc
ru
p
teo
cru
tsto
rstah
i%
sc
fao
cm
tip
o
n1iy
s
,w
hichislow
erthanw
orld
ctlo
am
s9e
e9n
sS
o
fo9
+7.0.4%70.4%81.6%82.5%76.5%76.9%
1. Too many problems (error free banking)
C
u
s
to
m
e
a:tr
is
a
tid
o
n
ch
m
aB
rk-r
T
h
iO
s1B
g
a
pM
ofS
1T
5A
-2
0E
p
rreST
p
efK
sco
e
n
e7o
n
eora
p
tooMrks
n
ir4oem
y
feo
e
a
.at76%
3.2
%
0
%
79.7%
80.%71.3%
71.8% 65u
0
9
de
m
9%
2
6c
4.9
%
.5s
%
rb
S
a3.c
t2i%sh
fm
acatri6o4k.n
6%
r0
e%
O
pto
ni$
t7y61
G
ap2
%N
B
W
rc,eLdeexsus86
%
80
0%
%69% 68%
C
8M
%
50%
% 65.1%C
7
0
%
6
0
%
0
%
5
0
%
ld
M
etK
ric9
:7
O
e
C
u
oa
m
E
9n8*S
K
9* E
K
1Q
0
N
ew
:*vC
ursatlom
esrtS
te
isrfE
aS
cK
tio
core E
Im
provem
ent*O
C
IH
IK
P
R
O
E
ID
&
A
IW
C
SE
K
O
veral
E
9I 1Q
0D
Assigned to Payment and Deposits Golden Thread Teams
O
veralC
usto
m
erS
atisfaction(K
eyD
rivers) O
W
t.u0
5uality/P
W
.5e
0rYS
t&
.G
0
ralP
rod
c.t2Q
erf. 10O
O
veralS
e
rv.2ic5eQ
uality
veralC
u
stt.o0m
atisfaction10%
10%ve
%
10%
P
e
rc
e
n
to
fB
U
's

81.0%
B
enchm
ark 50%78%
B
etnchm
ark 50%69%
B
chm
ark
7e
2n
%
7
%
0
50
%
25
5
N
N
0%
P
lo
at0ne2dQ
P
loa
ne
d03Q
0%
0%
0%
Y
E
9
1
Q
0
2
Q
3Q
0ct4Q
0
Y
E
9
1
Q
0
3
Q
0
4
Q
0
Y
E
9
1
Q
0
2
Q
0
4
Q
0
P
r
o
c
e
s
C
a
p
a
b
i
l
t
y
rntiienpo
riteispzcta
tionp&
R
oltyc,oC
au
o
u
tleyurm
M
u
res&
A
ctivties W
h
o
W
henenEexfiptes/cIm
tep
dactTrgetA
chieve0
d?/Im
pa
eubgafo
M
1e
e
nqd
rP
a
d
m
ts
iote
n.s,as 2
1
IO
nfcfe
rerasdiim
e
crlue
ttod
m
rm
pleartd
cie
tC
ih
opin
frn
vpda
p
rote
vpa
ildas
end
2
..ID
a
d
erca
m
sr,rcd
ietra
proe
m
io
p
ifsne
/cteeod
vp
rio
cote
/o
n
sg
C
II,,R
K
P
O
,A
E
D
I thru B
p
rn
cV
eca
ivleiu
ytm
u
skao
te
og
m
ey
/chaio
nunectlsop,m
arto
nfre
sbtio
3...O
fe
ia
ea
rse
p
u,cceitae
sd
K
P
O
,R
D
&
II,,C
IH
12p.
4
f
c
v
e
s
o
f
p
o
m
n
s
v
e
r
t
i
s
n
D
I
5
I
m
p
r
o
v
e
o
p
e
r
a
t
i
n
g
c
o
t
s
n
d
e
f
i
c
e
s
C
&
G
S
2
0
0
2..P
C
icoenrr-s/oT
e
ntdo,ipccraolbrS
pcrueosrtotlum
1
ckas
etotiso
crS
ue
se
tro
m
fo
cc
ush
e
e
trm
uncea
trule
re/crh
en
-ctna
gn
erorpco
rrstg.;tp
oro
m
eem
tnreesdoslu
;co
un
stom
ntg
egratedprocesim
provem
entsK
P
O
,D
A
IS
,D
I,H
I 2t0
hru0
2
L
arrno
csu
fstsm
can
looe
stre
o
e
cm
tO
ro
bltsem
s1
2...R
A
d
lrin
u
H
D
&
A
IO
,&
G
3
te
sv
p
e
lu
ieio
npm
3
C
u-ssrtio
a
p
cehrnfioccaulstre
adiniu
E
II,,R
3..U
P
ouud
m
a
coecatetnpism
1
P
ccu
vicydricefrlo
e
d
rm
utO
rrC
e
e
vte
ep
po
rtossd
clutin
pco
eh
fso
rom
aie
no
crieng
an
dbrrle
ba
iljtoyr;pdtriro
ivde;uctteo
C
K
R
,C
C
&
G
S
,D
&
A
I,to
-g2o0
ing
E
IP
2
P
ro
ord
d
ts/c
s//teP
rvrre
pssre
rfo
orrn
m
cen
erfco
m
oanre
ittoonrV
in
geC
vrssey.qV
d
on
esnotocur1
2..IF
Im
nosp
tiuou
ts-ue
la
m
np
te
fro
aollidam
tisnitxrosdigum
ctaioq
nsalitystandards D
C
K
P
R
O
hn
ru
.2
3
P
r
o
d
u
c
t
e
v
i
c
e
p
e
f
o
r
m
a
e
o
t
a
t
o
u
s
e
3
c
s
o
n
e
a
o
f
u
s
e
a
s
c
t
s
f
o
p
r
u
c
t
d
e
s
i
g
n
D
&
A
I
,
C
I
o
n
grouing0 10p
4...eIInnrS
a
lffe
su/eesaM
agbkrc,nkuoIoe
ttailn
rd.-stuTceptc/hor.tgram
1
sshu
iiccd
n
sM
ee
sd
g
rw
op
h
1
R
ensd
iga
n/ltrte
sn
tnrauicvgteurveS
F
,letrsaionfdg
erelationshipm
anagem
ent C
E
P
R
O
,D
I,H
I, th
de
niw
cg
t-g
nS
eu
purto
o
inform
ation, 2
..E
xe
pd
a
hio
icn
el,ivta
erg
yetkey,custom
I,,H
I,IK
m
ca
nq
ite
3
u
n
t
e
:
B
s
3
r
a
i
E
I
4
C
u
s
t
o
m
e
r
c
o
m
u
n
i
c
a
t
s
D
E
,
C
&
G
S
2
0
0
5.vC
ien
uafsniocneleoasw
1
ta
ss
r.fS
sD
m
retahsro(u
S
ales,O
&
D
,B
ilng&
C
relidm
iti,te
C
.Im
psrpoovn
essibulpityl/yaccho
au
innm
an
agem
einnt(sge,C
IS
C
M
B
F
dsetails)
A
lI,C
B
U
'sI,(G
&
R
egions) thru sU
oh
red
t1r9
a
n
S
cE
.,u
T
eae
choo
uvpo
orfg
t)rB
uS
rv&
e
yvR
sem
o
w
p
p
oC
ne
tr(~
Q
0sa)ction
U
n
e
ith
dust.1
2
e
m
cafto
toiro
n
D
IP
,E
C
S
s2
p
3c..o
U
nersastip
sfancstio
ry,lparcokblo
em
reso-lu
tiongh,functionalsilosw
3...R
R
em
-e
i/nim
eprr,orvee-sptrru
ttua
rb
eilotryg,aT
nra
izationtoom
eru
ten
csiu
m
e,rcnoentd
C
I,,M
K
R
O
,U
S
&
C
R
,E
1p im
E
A
E
ie
pIn
lS
ifgyC
otccae
oslu
tio
n
rascts,acountsm
anagem
ent H
D
IU
,U
&
C
R
,E
A
M
R
,Gthr2u020
C
6.N
P
ro
1
on
-id
nu
tec
gtrA
atv
ea
disla
ub
pilytychainresultsinsub-optim
alorder/delivery4
1.S
S
M
B
Fforde
ilsses,includeproblem
A
lIS
B
'sS
00 B
enchm
ark:90%
+

Deposits Golden Thread MBF


%
S
atisfactio
n

P
e
rc
e
n
to
fB
U
's

P
erce
n
tS
a
tisfac
tio
n

%
S
atisfactio
n

P
R
L
E
M
T
A
T
E
M
E
T
:rtie
o
a
k
s
a
g
eB
g
a
o
ru
p
o
ra
te
c
s
to
m
rexs
is
fa
c
tip
o
n1iy
s
,w
h
ichislo
w
e
rth
anw
o
rl6d
am
s9e
e9n
k
sS
o
fo
9
+
.70.4%81.6%82.5%76.5%76.9%
C
u
s
to
m
e
re
S
a
sK
fs
ac
tid
o
n
B
e'n
ch
m
aB
rk-r
T
h
iO
s1B
g
a
p
o
fS
1
5
-2
0
p
rN
p
e
n
tos
a
1
2
rtevc
e
n
e
p
o
rCBu
tM
n
y
fe
o
ta
h
e
c
o
m
a
.at76%
3.2
%
3c
.t2
0
%
79.7%
80.%71.3%
71.8% C
70.4%
0
9
0
o
d
s8
tiM
r4
o
m
L
9
2%
6c
4.9
%
5
u
.5%
sctlo
rb
S
a
i%sh
fm
aca
tri6o
4.n
6%
r0
e%
O
p
rtu
n
i$
t7y
G
ap
7% N
e
rc,e
d
esus86
%
6%
8
0%
%69% 68%
orkW
e
%
50%
% 65.1%
7
60
0%
%
0
%
5
0
%
ld
M
e
trK
icr9
:7
O
e
rsa
C
urstS
oa
m
S
a
E
*vC
E
9
8*S
K
9* E
K
1Q
0
N
ew
u
tlom
e
tie
srfa
cK
tio
n
core E
Im
provem
ent*O
C
IH
IK
P
R
O
E
ID
&
A
IW
C
&
G
S
E
K
O
veral
Y
E
9I 1Q
0D
O
veralC
u
sto
m
erS
atisfactio
n(K
eyD
rivers) O
W
t.u
0
.t2
5
W
tt.e
0
.5
0
te
.e
0
.2
5e
v
e
r
a
l
P
r
o
d
c
Q
u
a
l
i
t
y
/
P
e
r
f
.
O
v
e
r
a
l
S
r
v
i
c
Q
u
a
l
i
O
v
e
r
a
l
C
u
s
o
m
e
r
S
a
t
i
s
f
a
c
t
i
o
n
1
0
%
1
0
%
1
0
%
10
%
8
1
.
0
%
B
e
n
c
h
m
a
r
k
B
n
c
h
m
a
r
k
B
n
c
h
m
a
r
k
7
8
%
7
2
%
6
9
%
7
5
50
50% ty
50%N
20
5
o
tn2eQ
0%
%
P
lat0ne2d
P
lo
a
d03Q
0%
%
Y
E
91Q
02Q
03Q
04Q
0
Y
E
9N
1Q
Q
03Q
04Q
0 0%
Y
E
91
Q
0
04Q
0 0%
V
alu
e/P
rice
C
t..e
S
vS
c
.u
/sT
ch.
u
p
P
ro
d.P
e
rf.
S
ale
/S
s
M
.
up.ktg
E
asB
eu
D
in
g
s
.o
P
r(o
d
.D
vail
O
&
)A

90% Associate Satisf action

2.1 Attract a nd retain a world-class work force

2.2 Define a nd align Associate roles, measures and re wards


to our strategy
S. Alphin
2.3 Provide the support a nd tools Asso ciate s need to excel

V
a
lu
e
/P
rice
C
te
S
vS
c
.u
/sT
h
.
u
p
..c
P
ro
d
.P
e
rf.
S
a
le
s
/p
M
.
S
u
.ktg
E
a
sB
e
D
in
g
u
.o
P
r(o
d
.sD
va
il
O
&
)A

ASSOCIATE

Employer of Choice

%
S
atisfactio
n

CUSTOMER

Be Recognized As One of the Worlds Most


Admired Companies

%
S
atisfactio
n

VISION

GOALS

Deposit Golden Thread Root Cause


2.1 Complexity of Teller Processes
contributes to processing errors

rgtiieo
tnio
n
&
R
o
tC
au
en.s,as 21.O
C
o
u
te
repM
ea
u
res&
A
ctivites C
W
h
o
W
h
enenE
x
ted
arg
etA
ch
ieved
?
/Im
p
act
e
fp
ite
sc
/Im
p
actT
a
e
fo
rcauM
o
ysrrr,ic/dtecihpsz
1e
e
cid
iu
n
g
rsP
ka
p
ta
io
d
tio
m
tis
nfcfe
rra
crlu
to
m
e
pe
rtd
cie
p
o
n
fn
a
lyu
ro
ids
ed
2
..ID
a
q
ub
a
e
rn
n
ca
,m
o
ie
tra
ltyc,op
roe
m
otio
sdiim
p
ifsn
d
/cte
ord
m
p
rio
co
e
/vp
trvp
sg
II,,D
K
O
,A
E
D
I thru B
p
rn
cV
e
vle
d
ytm
te
o
m
e
nu
ectlso
p
ap
rta
nfre
sb
3..IIO
e
fee
ta
ia
a
re
stih
im
p
p
d
sd
K
P
R
O
,R
D
&
II,,C
IH
4
fre
cr/e
e
frva
p
o
tircm
o
n
su
,cctm
a
vn
e
tli;sacn
n
IP
5
m
p
rso
vu
e
o
p
e
tv-in
g
clsio
to
se
n
d
etfo
e
ite
se
C
&
G
S
2
0
0 12p.
2
C
u
s
t
o
m
e
r
S
e
r
v
i
c
e
/
T
e
c
h
n
i
c
a
l
S
u
p
o
r
t
.3
1
P
r
o
c
e
s
n
o
t
c
u
s
t
o
m
e
r
f
o
c
u
s
e
d
1
.
R
e
t
r
c
t
u
e
r
e
e
n
g
n
e
o
r
g
.
e
n
d
s
u
s
t
o
m
e
r
f
o
c
u
s
e
d
i
n
t
e
g
r
a
t
e
d
p
r
o
c
e
s
i
m
p
r
o
v
e
m
e
n
t
s
K
P
R
O
,
D
&
A
I
,
D
I
,
H
I
t
h
r
u
2
L
a
crso
kad
ca
lotP
se
o
p
rn
tf,o
cm
tO
crC
u
m
re
on
blem
s3
2..C
A
d
n
a
to
h
cp
u
p
rstce
H
&
A
IO
,G
S
to
isftsc
rvyd
e
p
o
n
so
ism
rortb
leV
esrto
lu
te
iio
np
u
srtio
ovm
e
rlre
scu
a
la
ta
oln
p
o
co
e
;a
pn
ro
b
le
re
trio
n
;tecsh
iscia
lm
traiq
nua
g E
II,,D
20
0
3...U
P
m
a
coecae
1
P
rrn
o
d
cfrlo
e
srse
d
ttp
e
re
op
rco
m
q
u
rrC
e
m
e
p
cn
tin
rsfm
o
rro
m
a
elm
lia
b
ilsjo
tyo
;lu
d
ivd
e
itxn
g
C
K
R
,C
C
&
G
S
,D
&
A
I,to
n
g2
o
ing
E
IP
2
P
o
du
ucccu
s//tee
rvrre
ivciire
p
rfo
o
rfm
n
cn
e
n
io
to
rio
n
g
vasse
O
oetssnotocur1
2..IF
Im
n
scp
tiuu
te
p
o
sd
ts-e
la
u
ce
h
ie
tn
o
rtisng
frd
op
rrra
m
re
p
o
ucto
tin
ro
d
u
cta
ion
slitystandards D
C
K
P
R
O
h
r--u
0
0
3
...P
ra
o
d
u
tt/s/e
e
cn
e
sn
p
e
rg
o
rm
a
cm
e
a
ro
e
n
ta
e
y.fV
to
ua
std
e
3
o
sn
o
n
e
a
o
fe
u
sve
eh
a
scn
p
ca
fd
o
o
d
u
cta
tkd
sircg
n
D
&
A
I,,K
C
IR
o
n
gro
ing
4
S
a
l
e
s
M
a
r
k
e
t
g
S
u
p
o
r
t
1
s
u
f
i
c
n
b
u
s
i
e
s
r
o
w
t
h
s
p
t
1
R
e
d
e
s
i
g
n
/
r
s
t
r
u
c
u
r
S
F
,
t
r
i
n
n
g
,
t
a
r
g
e
e
y
,
u
s
t
o
m
e
r
e
l
a
t
i
o
n
s
h
i
p
m
a
n
a
g
e
m
e
n
t
E
I
P
O
,
D
I
,
H
I
,
t
h
u
I3
2
n
d
e
q
u
a
t
e
c
o
t
a
c
t
n
e
w
p
r
o
d
u
c
t
/
p
r
g
r
m
i
n
o
r
m
i
o
n
,
2
.
E
x
p
a
d
a
l
t
e
n
a
t
i
v
i
l
e
s
o
f
e
l
i
v
e
y
C
I
,
H
10p
m
e
rcsh
a
n
die
sntg
,n
Io
M
.1
I5
n
u
f
i
c
k
w
l
e
d
g
e
:
B
u
s
.
T
e
c
h
.
3
t
r
a
i
n
i
g
E
I
4
.
C
u
s
t
o
m
e
r
c
o
m
u
n
i
c
a
t
i
o
n
s
D
,
E
I
,
C
&
G
S
2
0
0
E
a
e
o
fnS
iive,n
o
u
iofocn
s
e
s
.2.vcC
tnrT
u
se
rspo
a
ssD
e
rla
fg
o
rckB
m
a
n
e
rlow
a
e
a
s
(
S
a
l
e
s
,
O
&
D
,
B
i
l
n
g
&
C
r
e
d
i
t
,
C
u
s
t
.
1
.
I
m
p
r
o
v
e
s
u
p
l
y
c
h
a
i
n
m
a
n
a
g
e
m
e
n
t
(
s
e
I
S
C
M
B
F
f
o
r
d
e
t
a
i
l
s
)
A
l
B
U
'
s
(
&
R
e
g
i
o
n
s
)
t
h
r
u
S
&
C
oh
re
d
e
t1
r9
ap
n
.sco
S
,U
c
h
.
u
p
o
t
)
sU
u
rp
ve
yvR
sem
o
w
o
n
tr(~
Q
0sa
)ction
t
h
r
o
u
g
h
,
f
u
n
c
t
i
o
n
a
l
s
i
l
o
s
w
i
t
h
l
i
m
i
t
e
d
2
.
R
e
s
p
o
n
s
i
b
l
i
t
y
/
a
c
o
u
n
t
a
b
i
l
t
y
,
T
r
a
i
n
n
g
,
C
o
m
m
u
n
i
c
a
t
i
o
n
s
D
I
,
C
I
,
E
I
,
G
C
S
p
e
3.U
nsatisfactoryproblem
resolution 4
3.R
e
-e
ep
rr,orve
-sp
trru
tu
reorganizationtom
ertecsu
to
e,rcn
e
scts,acountsm
C
I,,D
K
P
O
,U
S
&
C
R
,E
1p im
E
A
M
E
ie
m
pIn
lS
ifg
yi/n
im
e
otcca
e
oslu
tim
on
o
ntrd
a
anagem
ent H
IU
,R
U
&
C
R
,E
A
M
R
,Gthr2
020
C
6.N
P
o
cgtraA
1
orn
-id
nu
te
tv
ea
disla
ub
piltyy
chainresultsinsub-optim
alorder/delivery1..S
S
C
M
B
Ffo
rd
e
ilsses,includeproblem
A
lIS
B
'sS
u
00 B
en
ch
m
ark:90%
+
P
ro
cesC
ap
ab
ilty

Six Sigma Change Process

Green Belt Project


Green Belt Project Application
Problem Definition (What is the Defect?

What is the magnitude of the defect?


goal (at least 50% improvement) and timeframe for this project?):

Primary Metric (measure of defect):

What is the improvement

Secondary Metric (counterbalancing measure):

What will be the impact of the improvement from a customers standpoint?


What is the expected savings or revenue increase?
High Level Process Map and Multilevel Pareto are attached. _______
Financial Director Signature: _____________________________________________________________
(Agrees that the potential financial benefits can be achieved and measured)

Date:

Customer Segment Leader Signature_______________________________________________________

Date:

Champions Signature: __________________________________________________________________

Date:

Complete after project is approved for class enrollment


Name of Green Belt Candidate:
Project Team Members:

Green Belt Project Definition


Improve number of counter deposit slips
presented for processing but did not post in
time in _____________ (Mid-Atlantic, Kansas
City, or Tampa) from ________% to ______%.

Two Approaches
Change Integration
Ownership & Commitment

GB/BB Improvement (Current)


Define
Define

DFSS

Measure
Measure

Development (New)

Analyze
Analyze

Improve
Improve

Project Management
Two approaches to reaching the Six Sigma goal:
- Improving existing products and processes
- Developing new products and processes
Different tools and steps, but focus and flow is the same

AACommon
Common Tollgate
TollgateApproach
Approach

Control
Control

Education

Champions

Master
Black
Belt

Black Belts

Mentor, trainer, and coach of Black Belts and oth


in the organization.

Leader of teams implementing the six sigm


methodology on projects.

Green Belts

Team Members
Quality Fundamentals/ Kaizen Now

Deployment
Champions

Delivers successful focused projects u


the six sigma methodology and tools.

Participates on and supports the


project teams, typically in the
context of his or her existing
responsibilities.

Responsible for supporting the Deployment


Strategy within Line of Business/Customer
Segment or Golden Thread

What Makes Six Sigma Different?

Leadership Commitment, Competence, &


Involvement
Methodology & Tools
Data Driven
Statistically Validated
Best People 100% Dedicated to Defect
Reduction
Project Focused
Aligned to Strategic Goals (Hoshin, MBF)
High ROI Expectations

Six Sigma & Leadership


Six Sigma only works when Leadership is
passionate about excellence and willing to change.

Fundamentals of Leadership

Challenge the process


Inspire a shared vision
Enable others to act
Model the way
Encourage the heart

Six Sigma is a catalyst for leaders

Executive Commitment
The Bank of America executive officer team are all
certified Green Belts
Bank of America Executive Officer team
Ken Lewis certified Green Belt
Jim Hance certified Green Belt
Amy Brinkley certified Green Belt
Ed Brown certified Green Belt
Rich DeMartini certified Green Belt
Barbara Desoer certified Green Belt
Gene Taylor certified Green Belt

Results
Sustaining the intensity of our Six Sigma work is critical for Bank of
America to achieve its strategic goals. Six Sigma has enabled us

to generate more than $300MM in first-year productivity


gains for the company. It has also had a significant impact upon
the leadership team with our personal education and certification as
Six Sigma Green Belts. As we look to the future, our leadership charge
is to keep Six Sigma a top priority and use it to produce organic
customer revenue growth.
Ken Lewis (10/9/02)

Questions?