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DESIGN FOR

SIX SIGMA
OF STATISTICS
OFFICE: +1-208-885-4410

CUSTOMER & COMPETITIVE INTELLIGENCE FOR PRODUCT, PROCESS, SYSTEMS & ENTERPRISE EXCELLENCE

DEPARTMENT
REDGEMAN@UIDAHO.EDU

DR. RICK EDGEMAN, PROFESSOR & CHAIR ± SIX SIGMA BLACK BELT

S S
IX
DEPARTMENT

IGMA

a highly structured strategy for acquiring, assessing, and applying customer, competitor, and enterprise intelligence for the purposes of product, system or enterprise innovation and design.

OF STATISTICS

Design for Six Sigma
Applications of Six Sigma that focus on the design or redesign of products and services and their enabling processes so that from the beginning customer needs and expectations are fulfilled are known as Design for Six Sigma or DFSS. The aim of DFSS is to create designs that are resource efficient, capable of exceptionally high yields, and are robust to process variations. This aim produces a recasting of DMAIC that can be characterized as: Define-Measure-Analyze-Design-Verify (DMADV) or as Invention-Innovation-Design-Optimize-Verify (I2DOV) or as CDOV

ge.Six Sigma from the GE Perspective: Six Sigma is a highly disciplined process that helps a company focus on developing and delivering near-perfect products and services.com/sixsigma/makingcustomers.html . Why ³sigma´? The word is a statistical term that measures how far a given process deviates from perfection. ³What is Six Sigma? The Roadmap to Customer Improvement´ www. Six Sigma has changed the DNA at GE ± it is the way that GE works ± in everything that GE does and in every product GE designs. you can systematically determine how to eliminate those and approach ³zero defects´. The central idea behind Six Sigma is that if you can measure how many ³defects´ you have in a process.

com/whatwedo/sixsigma.ge.Design for Six Sigma at GE: DFSS is changing GE. What We Do. GE Corporate Research and Development Formerly posted at: www. The essence of DFSS is predicting design quality up front and driving quality measurement and predictability improvement during the early design phasesa much more effective and less expensive way to get to Six Sigma quality than trying to fix problems further down the road. With it GE can build on all of its capabilities and take all of its product and process designs to a new level of world-class performance and quality.crd.html .

The design organization changed from a ³factor-of-safety´ mentality to one in which there was a quantitative assessment of design risk. 1. . 35. and ‡Design for Maintainability. ‡Design for Reliability. January 2002. 33-42. Four elements of design are most critical to the effort: ‡Design for producibility (design for manufacturing and assembly).Another View of Design for Six Sigma: DFSS is the change in the product design organization from a deterministic to a probabilistic culture. ³Design for Six Sigma: 15 Lessons Learned´. both in products and processes. ‡Design for Performance (technical requirements). Our people were trained to incorporate statistical analysis of failure modes. No. Then they began to incorporate design changes that modify and eliminate design features with a probability of failure within a predefined range of operating environments and conditions. Vol. Quality Progress. pp.

Voice of the Customer Measure Analyze Improve Define Control Institutionalization The DMAIC Model .

Improve the process and Control process performance Improve Analyze and ensure that defects do not recur. Six Sigma Innovation & the DMAIC Algorithm . Control Measure Analyze process data and Determine the capability of the process. remove defect causes.Define and customer requirements. Define the problem Measure defect rates and Document the process in its current incarnation.

Team Charter & Project Scoping: Of similar importance & structure as in DMAIC .

EXECUTIVE SUMMARY «««««««««««««««««««3 PROJECT OBJECTIVES«««««««««««««««««««3 PROJECT SCOPE ««««««««««««««««««««..Team Charter Table of Contents 1.4 PROJECT CONTROL PROCEDURES ««««««««.««««««4 CONFLICT RESOLUTION ««««««««««««««««««.. 5.««««4 PROJECT ASSUMPTIONS «««««««««««. 7. 9.. 6.. 3.«3 BUSINESS CASE ««««««««««««««««««««««3 PROJECT ORGANIZATION «««««««««««««««««3 SCHEDULES««««««««««««««««««««««««. 10.4 COMMUNICATION PLAN «««««««««««««««««. 8. 4... 5 . 2.

Project Scope  On what process will the team focus on?  What are the boundaries of the process we are to improve? Start point? Stop point?  What resources are available to the team?  What (if anything) is out-of-bounds for the team?  Under what (if any) constraints must the team work?  What is the time commitment expected of team members?  What are the advantages to each team member for the time commitment? .

SMART ‡ Problem & Goal Statements Should be: Specific Measurable Attainable Relevant Time-Bound .

measurable attributes that are most critical in the deliverables? ± Select those attributes that have the greatest impact on customer satisfaction. Clearly specify your deliverables tied to those expectations ± What are the process outputs? (Tangible and intangible deliverables) ± Rank or prioritize the deliverables ± Rank your confidence in meeting each deliverable 4. . Define customer¶s expectations and needs ± Ask the customer ± Think like the customer ± Rank or prioritize the expectations 3. Identify the customer ± Who receives the process output? (May be an internal or external customer) 2. Identify CTQ¶s for those deliverables ± What are the specific.Eight Steps for Establishing Project Boundaries 1.

± Map the informal processes. 6.Eight Steps for Establishing Project Boundaries 5. Define the project to improve the CTQ¶s you have selected ± Define the defect to be attacked . Map your process ± Map the process at it works today (as is). Determine where in the process the CTQ¶s can be most seriously affected ± Use a detailed flowchart ± Estimate which steps contain the most variability 7. Evaluate which CTQ¶s have the greatest opportunity for improvement ± Consider available resources ± Compare variation in the processes with the various CTQ¶s ± Emphasize process steps which are under the control of the team conducting the project 8. even if there is no formal. uniform process in use.

The SIPOC Model Inputs Suppliers Process Outputs Customers Steps Inform Loop .

From Concept to Market: the Voice of the Customer .Six Sigma COPIS Model Outputs Customers Steps Process Inputs Suppliers How does Six Sigma Work? The Voice of the Customer (VOC) is aggressively sought and rigorously evaluated and used to determine needed outputs and hence the optimal process configuration needed to yield those outputs and their necessary inputs for which the best suppliers are identified and allied with.

DESIGN FOR S IX SIGMA DFSS LESSONS LEARNED & LEADERSHIP DEPARTMENT REDGEMAN@UIDAHO. RICK EDGEMAN. PROFESSOR & CHAIR ± SIX SIGMA BLACK BELT .EDU OF STATISTICS OFFICE: +1-208-885-4410 DR.

With it GE can build on all of its capabilities and take all of its product and process designs to a new level of world-class performance and quality.html . The essence of DFSS is predicting design quality up front and driving quality measurement and predictability improvement during the early design phasesa much more effective and less expensive way to get to Six Sigma quality than trying to fix problems further down the road.com/whatwedo/sixsigma.ge.crd. GE Corporate Research and Development Formerly posted at: www.Design for Six Sigma at GE: DFSS is changing GE. What We Do.

Verify results and maintain performance. Analyze and assess the design for the process. product or service.product or service. Measure and match performance to customer requirements. Design and implement the array of new processes required for the new process.Design for Six Sigma Define-Measure-Analyze-Design-Verify (DMADV) Define customer requirements and goals for the process. . product or service.

Design. and Verify. Analyze. Business Process Management ±aids in definition and management of operations and activities in terms of core and enabling processes. Optimize.Improvement±Focuses on high priority problems in business processes. and Control. The methodology is called the DMADOV model: Define. This uses the DMAIC methodology: Define. Measure. Improve. Analyze. Measure. . Design±Design For Six Sigma (DFSS) addresses new or fundamentally poor processes. The resulting process management systems provide a foundation of process definition and baseline data for all process design and improvement activities.

Design 8 Develop Proc. & Prior. Detailed Design Elements 6 Develop the Detailed Design 7 Test Det. Change Plan 4 Identify Risks 3 Generate Concepts 3 Develop HighLevel Design 4 Test High-Level Design 5 Ident. High-level Design Require. Plans 9 Review Pre-Pilot Design 10 Tollgate Review 4 Reassess Risk 4 Evaluate & Select Concepts 5 Review Concepts 5 Tollgate Review 5 Tollgate Review 6 Tollgate Review . (CTQs) 3 Prioritize CTQs 2 Prioritize the Functions 3 Develop Org. Mgt. 2 Develop Design Requirements Verify Design Performance 1 Conduct and Evaluate Pilot 2 Implement the Design 3 Close Project 2 Develop Project Plans 2 Translate VOC Needs into Req. & Prior.Define the Project 1 Develop Charter Measure Customer Requirements 1 Understand VOC Analyze Concepts 1 Identify Key Functions Design The Product 1 Ident.

Activity Network Diagrams. Organizational Change Plan OUTPUTS Project Charter Project Plan Organizational Change Plan Risk Management Plan Tollgate Review & Storyboard Presentation Develop organizational change plans. Pareto Charts. DMADV Specific Tools: Project Charter. and project plans.STEP DEFINE the project Develop a clear project definition. risk management plans. Technology Fore. In/Out of Scope Tool. Forecasting Tools. Customer Value Analysis.  .  TOOLS Market Analysis Tools: Mkt. Project Planning Tools: Work Breakdown Structures. & Visioning. PERT Charts. Gantt Charts. Process Analysis Tools: Control Charts. Competitor Analysis.

 TOOLS Cust. Surveys. Benchmarking OUTPUTS Prioritized CTQs Updated risk management plan and multistage project plan. Focus Groups. if appropriate. VOC Table Affinity Diagrams Kano Model Perform.  Revise Risk Management Plan  QFD Matrix CTQ Risk Matrix Multistage Plan Tollgate Review If necessary. develop a multistage project plan.STEP MEASURE Customer Req.  . Segmentation Tree Data Collection Plan Customer Research Tools: Interviews. Contextual Inquiry. Tollgate Review & Updated Storyboard Collect VOC Data Translate the VOC into design requirements CTQs  Identify the most important CTQs.

STEP ANALYZE Concepts:

TOOLS QFD Matrix:

OUTPUTS
Selected concept for further analysis and design

Creativity Tools: Brainstorming/ Generate, evaluate, Brainwriting; Tollgate Review & and select the Analogies; Updated Storyboard concept that best Assumption Busting; meets the CTQs Morphological Box. within budget and resource constraints. Pugh Matrix Tollgate Review Forms

STEP
DESIGN the product
Develop the high-level and detailed design. 

TOOLS
QFD Matrix Simulation Prototyping Design Scoreboard FMEA / EMEA

OUTPUTS
Tested and approved high-level design Tested and approved detailed design Detailed updated risk assessment Plans for conducting the pilot Completed design reviews and approvals Tollgate Review & Updated Storyboard

Test the design components. 

Prepare for pilot and full-scale deployment. 

Planning Tools Process Management Chart Tollgate Review Forms

STEP VERIFY Design Performance
Conduct the Pilot and Stress Test and Debug the Prototype. 


TOOLS
Planning Tools Data Analysis Tools: Control Charts; Pareto Charts. Standardization Tools: Flowcharts; Checklists; Process Management Charts.

OUTPUTS
Working Prototype with Documentation Plans for full implementation Control Plans to Help Process Owners Measure, Monitor, and Maintain Process Capability. Transition Ownership to Operations Completed Project Doc. Project Closure Final Tollgate Review & Updated Storyboard

Implement the Design.

Transition Responsibility to the Appropriate People in the Organization. 


Close the Team.

.DFSS as a Growth Strategy: Lesson 1 Achieving world-class performance through any set of tools takes careful preparation and a commitment to the foundational change efforts required for world-class capability.

the greater the life cycle profits that will be realized. The more the initial investment to eliminate (adverse) design issues.DFSS as a Growth Strategy: Lesson 2 DFSS grows into program profits in direct proportion to the size of the initial investment. .

DFSS as a Growth Strategy: Lesson 3 A structured compensations system that substantially rewards leadership cooperation and co-ownership for successfully implementing cross-functional DFSS projects significantly improves the bottom line. This firm REQUIRED senior management to spend 30% of its time on DFSS activity. Note: the corporate example that produced the most impressive results was a firm where DFSS involvement was directly linked to management rewards. .

need to be selected. . prepared and trained much earlier in the process to achieve desired levels of commitment. especially middle managers.DFSS as a Growth Strategy: Lesson 4 Leaders.

then adequate dollars. the heart and soul of a business. . Success is rarely the result of unplanned. fortuitous accident. time and resources must be incorporated into the annual budget to ensure the company¶s success.DFSS as a Growth Strategy: Lesson 5 DFSS should be regarded as a part of doing business and represent of part of reinvesting a portion of the profits into the business to produce even greater profits in the long run. If DFSS is to be the driving force.

DFSS as a Means of Serving Customers: Lesson 1 Continual customer feedback and ideas are essential to achieve a partnership with the customer. . companies that make the customer a partner in the DFSS activity and maintain that partnering throughout the product life cycle have a customer for the product life cycle. In an age where competition for customers is relentless.

All employees must understand how it works and why it benefits the customer. . and a conscious effort must be made to embed it in the fabric of the entire organization.DFSS as a Means of Serving Customers: Lesson 2 A DFSS must be inclusive. the business and themselves.

.Product-Process Fusion Through DFSS: Lesson 1 Drive product and process compatibility across the entire value chain and product life cycle.

.Product-Process Fusion Through DFSS: Lesson 2 The value chain of your customer includes everything incorporated into the final product. If they are not integrated into the DFSS activity. then the final product is sub-optimized. Substantial elements often come from suppliers and subcontractors.

Product-Process Fusion Through DFSS: Lesson 3 Six Sigma activity to reduce variability in the factory is a losing process if the new designs cause new variability. . DFSS is intended to reduce the introduction of new variability and achieve process stability and uniform quality faster.

Product-Process Fusion Through DFSS: Lesson 4 Metrics must tell the story of the organization¶s performance AND must be discussed regularly among the staff in each area. .

.Product-Process Fusion Through DFSS: Lesson 5 DFSS can have applicability in diverse industries ± some that are nontraditional such as pharmaceuticals. if the design and production is integrated and balanced.

. This slows the movement to probabilistic design approaches as there seems to be little time to meet schedules and conduct thorough analysis using statistical tools.The DFSS Engineering Organization: Lesson 1 Design organizations are struggling with the loss of domain knowledge and lack of experience and skills among the DFSS teams themselves.

. It accelerates the incorporation of lessons learned outside the design studio.The DFSS Engineering Organization: Lesson 2 Enlarging the responsibility of design engineering to follow the product from start to finish creates ownership that changes the approach to product design.

.The DFSS Engineering Organization: Lesson 3 The trend toward engineering efficiency in which organizations assign engineers from pools to cover assignments has made engineers a commodity at just the point in time when the loss of domain knowledge makes the need for longevity in an organization essential.

RICK EDGEMAN.EDU DR.DESIGN FOR SIX SIGMA OF STATISTICS OFFICE: +1-208-885-4410 And Lean Management DEPARTMENT REDGEMAN@UIDAHO. PROFESSOR & CHAIR ± SIX SIGMA BLACK BELT .

The People of Six Sigma .

Make sure that project opportunities are acted upon by the organization¶s leadership and the finance department. Hold the ground by implementing Black Belt recommendations.  Develop a comprehensive training plan for implementing the Breakthrough        Strategy.Six Sigma Champions  Create the vision of Six Sigma for the company. . Recognize people for their efforts. Carefully select high-impact projects. Ask Black Belts many questions to ensure that they are properly focused.  Define the path to implement Six Sigma across the organization. Realize the gains by supporting Six Sigma projects through allocation of resources and removal of roadblocks. Support development of ³statistical thinking´.

 Participate in project reviews to offer technical expertise.  Get certified as Master Black Belts.  Partner with the Champions.  Facilitate sharing of best practices across the corporation.  Help train and certify Black Belts.  Assist in the identification of projects.  Take on leadership of major programs.  Develop and deliver training to various levels of the organization.Master Black Belts  Understand the big business picture.  Coach and support Black Belts in project work. .

Teach and coach Breakthrough Strategy methods and tools. Determine the most effective tools to apply. Prepare a detailed project assessment during the Measurement phase. . Influence without direct authority. first-line supervisors. Identify the barriers. Solicit help from Champions when needed. and team leaders. Stimulate Champion thinking. Report progress to appropriate leadership levels. Manage project risk.Black Belts  Act as Breakthrough Strategy experts and be Breakthrough Strategy             enthusiasts. Lead and direct teams in project execution. Get input from knowledgeable operators. Ensure that the results are sustained.

INFLUENCE: Sells the organization on the use of Six Sigma strategies and tools. TEACH: Provides formal training of local personnel in new strategies and tools. DISCOVER: Finds application opportunities for Six Sigma strategies and tools. COACH: Provides one-on-one support to local personnel.g. both internal and external (e. IDENTIFY: Highlights / surfaces business opportunities through partnerships with other organizations. TRANSFER: Passes on new strategies and tools in the form of training. workshops. . and local symposia. suppliers and customers).Black Belt Activities MENTORS: Cultivates a network of Six Sigma individuals at the local organization or site. case studies.

 Participate on Black Belt project teams in the context of their existing responsibilities.Green Belts  Function as Green Belts on a part-time basis.  Learn the Six Sigma methodology as it applies to a particular project. . while performing their regular duties.  Continue to learn and practice the Six Sigma methods and tools after project completion.

Corporate Six Sigma Leadership .

they achieved the previously ³impossible´ operating margin of 16.´ GE¶s operating income. . a critical measure of business efficiency and profitability. GE was averaging about 3. In 1995 Welch mandated that each GE operation from credit card services to aircraft engine plants to NBC-TV work toward achieving Six Sigma.  In dollar amounts. Jack Welch. Six Sigma delivered more than $300 million to GE¶s 1997 operating income and more than $600 million in 1998.  With Six Sigma embedding itself deeper into GE¶s processes.6% in 1995. describes Six Sigma as ³the most important initiative GE has ever undertaken.5W when it introduced the program. hovered around 10% for decades.Six Sigma and General Electric  General Electric CEO.7% in 1998 ± up from 13.

Raytheon to improved its cost of doing business by more than $1 billion annually by 2001. company. has made Six Sigma a cornerstone of the company¶s strategic plan.  By pursuing Six Sigma quality levels throughout the . who became Raytheon¶s CEO in 1998.Six Sigma and Raytheon  Former AlliedSignal executive Daniel P. Burnham.

.Six Sigma and the Service Sector Robert Galvin: Former Motorola CEO  Failing to implement Six Sigma in commercial areas with the same force that the company implemented it in its industrial sectors cost Motorola $5 billion over a four-year period.

distribution and purchasing.9)*(21%) = 98% of the U. So: 79% + (.  90% of those employed in manufacturing are actually doing service work ±  such as finance. marketing. Companies like GE have shown that improving internal and external commercial processes adds to the bottom line and to customer satisfaction significantly . Workforce is involved in ³service work´. Workforce is employed by commercial businesses.S.  BOTH ARE WRONG:  Customers are more likely to take their business elsewhere because of poor  service than poor products.How Big is the Service Sector?  79% of the U. sales.S.  MISTAKEN BELIEFS:  Some companies still believe that improving commercial processes is less important than improving industrial processes or that seemingly intangible commercial processes can¶t be controlled.

Larry Bossidy came from GE to become CEO in 1991 Market Value = $4 billion in 1991 Market Value = $29 billion by the end of 1998 Market Value = $38 billion by 2000.AlliedSignal  70. . Plastics. Fibers.000 Employees  Chemicals. Aerospace     Products. Automotive Products.

 Six Sigma Profits in Service Areas including:  Order Processing  Shipping  Procurement  Product Innovation .AlliedSignal  TODAY¶S GOALS:  6% productivity increase  Reduced Inventory  Full-Capacity Utilization  Little or no Overtime  Reliable Products  5s Manufacturing  5s Designs  Predictable Cash Flow  5s Suppliers  BY END OF 1998:  Total Impact of Six Sigma Within AlliedSignal Reached $2 Billion.

.  Lesson 1: The Organization¶s Leadership Must Own Six Sigma  Upper management supported Six Sigma. Also. ALSO « how various initiatives ³fit together´. rather than just a ³command´ to make something happen. understanding of the Breakthrough Strategy provided a ³plan of action´. in the process. but we can tell them how not to do it. Allied has made mistakes along the way and. This led to confusion. Black Belts were using ³Six Sigma jargon´ while managers were using business vocabulary. SOLUTION: Introduce ALL levels of management to Six Sigma.We can¶t tell other organizations how to do Six Sigma. BEGAN TO FOCUS ON PROCESSES ± NOT PEOPLE as the source of problems. Management had weeklong training sessions to understand the methods of the Breakthrough Strategy and how Black Belt training and experience could be leveraged. Black Belts seen as a nuisance. learned some tremendous lessons. managers below those at the      top saw it as a ³flavor of the month´.

But companies that train promising individuals as Black Belts circumvent the vertical flow and move people around horizontally. having them serve time in as many major businesses or divisions as possible to give them a kaleidoscopic view of the organization and the benefit of being mentored by a variety of new blood. Managers inch up the same smokestack. learning more and more about less and less. Vision & Activities. . Linked AlliedSignal¶s Goals.Six Sigma Changed the Company Culture and One of the flaws at Allied is that we had too much vertical mobility.

 Having recognized the need to train managers in the Six Sigma Breakthrough    Strategy. JOHNSON.000 leaders in the organization in how Six Sigma worked. Allied is not in the business of measuring activity.  The Crucial role of Black Belts. and so on. Director of Six Sigma at AlliedSignal Lesson Two: A Beginning Without an End . and in the process makes a lots of money. line supervisors. THEN we just flat out aren¶t going to do it. We are in the business of measuring results. our shareholders. SO « training had to be ongoing. Allied dedicated the next year to training 1. Training sessions lasted 3. COMPLAINTS FROM BLACK BELTS WITHIN SIX MONTHS: Management turnover and too much promotion of Black Belts into management before benefit from the training and skills could be realized.´ RICHARD A. and in its potential financial impact. and employees. IF something doesn¶t have a positive impact on customer satisfaction. Initially trained top managers at each of Allied¶s 11 Strategic Business Units and gradually worked their way down the organization to middle management. RATHER THAN teaching statistical processes involved in achieving Six Sigma.5 days and emphasized Six Sigma¶s impact on:  Profitability through improved processes.

 40% of Black Belts were promoted to departmental or plant managers. AlliedSignal¶s goal: send Black Belts with a minimum of 18-24 months experience mastering the Breakthrough Strategy back into the organization to create Six Sigma behavior & thinking.  NOW « BLACK BELTS must work at least 18-24 months on a series of Six Sigma projects prior to a change of roles. Others completed only one or two projects before they were pulled back into their previous assignments with leadership not properly reviewing projects and properly acting upon financial opportunities created by Black Belts so that managers felt that Six Sigma wasn¶t particularly important.  50% of Black Belts were absorbed back into the organization within six months. TIME & EXPERIENCE ARE VIEWED AS CRITICAL TO SIX SIGMA SUCCESS AND THE MATURITY OF THE BLACK BELT. Others left AlliedSignal for higher-paying jobs at suppliers. Lesson Three: Black Belt Retention .

 MASTER BLACK BELTS are selected from the best of the Black Belts.  NOW: All Salaried Employees are Expected to Undergo the 26 Hours of Training Required for Green Belt Certification by 2000.000 .000  Total # of Employees 70.  CHAMPIONS 20 Master Black Belts 70  Black Belts 2000+ Green Belts 18.  Each of these trains and mentors 10 Black Belts  Each Black Belt trains and mentors 10 Green Belts.5 Day Executive Overview followed by the traditional Four-Month Black Belt training process.Continued  AlliedSignal¶s Champions & Master Black Belts  3.Lesson Three .

.  To achieve Six Sigma it is important to minimize the number of suppliers. W.  AlliedSignal recognized that they needed to view suppliers as their partners. 100 are either customers or suppliers.  This prevented the company from realizing the full benefits of Six Sigma. BUT then follows up by dedicating ITS OWN BLACK BELTS to mentor and work with critical suppliers.Lesson Four: Supplier Capability is Critical to the Success of the Breakthrough Strategy  The Majority of AlliedSignal¶s Suppliers were operating at about three sigma. limiting these to those that have been trained in the Breakthrough Strategy.  AlliedSignal began TRAINING its suppliers and offering other technical assistance.  Not only does AlliedSignal provide training. AlliedSignal estimates that for every 300 Black Belts it trains. Edwards Deming: End the Practice of Awarding Business on Price Tag Alone.

Lesson Five: There is No Such Thing as Operator Error  It is PROCESSES ± not PEOPLE that Fail.  Focus on Processes implies that people are not accused.´ .  This maps to one of Deming¶s 14 Points for Management: ³DRIVE OUT FEAR´. that they are able to investigate processes and be ³part of the solution. but rather.

the Finance Department. and Executive Leadership must work in tandem.  Black Belts. . the company¶s Leadership must make sure that Black Belts focus on the right projects and take action on the savings opportunities they generate.  While Black Belts create opportunities for cost reduction and increased profitability. Finance provides closure to the effort by ensuring that the savings are returned to the organization¶s bottom line.Lesson Six: Focus on Bottom-Line Improvement  The number one source of failure in deploying Six Sigma is the result of Lack of Commitment FROM THE Organization¶s Leadership.  The Finance Department must be involved so that the impact of Six Sigma Projects on the Bottom-Line is apparent.

Requiring Black Belts to dedicate a minimum of two years to working on Six Sigma projects. 2. TRAINING: Allied¶s employee base changes enough every nine to ten months that maintenance of Six Sigma culture requires that new employees be trained in the Breakthrough Strategy. and alignment of goals among divisions to reinforce Breakthrough Strategy thinking and goals. 3. Six Sigma is a program designed to generate money for the company. 4. CEO: One of the things I have trouble with is « nonfinancial objectives. Senior management involvement. either through savings resulting from reduced costs. ‡ FIVE ACTIONS TO PERPETUATE SIX SIGMA: 1. Supplier involvement and improvement in Six Sigma initiatives. . Continued on-site leadership training. or from boosting sales by increasing customer satisfaction. 5. Often they¶re just as obscure and vacuous as they sound. Products and services should be improved ONLY to the degree that customer value is increased.Lesson Seven: Initiative Overload LARRY BOSSIDY.

Lack of integrated information and financial systems. Fragmented. staff-driven approaches. Lack of metrics focused on customer value-added processes. A lack of trained and experienced people. Not being a process-based company.AlliedSignal: Hindrances to Six Sigma Success Working on too many improvements at the same time. Middle managers who fear uncertainty about future roles. Not having someone accountable for the problem. .

EDU SIX SIGMA OF STATISTICS OFFICE: +1-208-885-4410 DR. RICK EDGEMAN.DESIGN FOR End of Session DEPARTMENT REDGEMAN@UIDAHO. PROFESSOR & CHAIR ± SIX SIGMA BLACK BELT .