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SIX SIGMAINFRASTRUCTURE

DESIGN &IMPLEMENTATION

Jackie Cazar

6/23/04

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Agenda

Six Sigma Success EquationDeployment ChallengesInfrastructure Design & ImplementationInfrastructure Team & Function Design

Information Technology Finance Human Resources

Results, Benefits, Risks

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Six Sigma Success Equation

Y =

The 3R’s of Success

ƒ(RTalent, RProjects, RSupport)Right TALENT: Right Black Belts, Green Belts, Yellow Belts &Master Black Belts.

Right PROJECTS: Well-defined projects with holistic approachfocusing on the bottom line. Proactive Project Pipeline Strategy.

Right SUPPORT: Passionate Champions, Committed Senior Leaders(CEO), Highly Analytical Data Owners, Excellent Subject MatterExperts & Process Owners, Right Financial Reps, Robust FinancialManagement & Reporting System, Excellent HR Support System,Good/Available Data, Correct Metrics & Validated MeasurementSystems, Right Vendor & Customized Curriculum.

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Six Sigma Deployment Challenges

D M

A I

C

Training Starts Q1 Q2 Q3Cycle time

Best-In-Class Common-Case Worst-Case

Best-In-ClassWell-defined Projects with

ICOPQ signed off by Finance

Right Black Belts 100%Dedicated

Strong Support System inPlace

Common-CaseNot all Black Belts have awell-define project or are

100% Dedicated.Financial/Customer Benefit

hard to identify.

Weak Champions & SupportSystem.

Worst-CasePoorly-defined Projects

Poorly selected BlackBelts/Champions

Little to NoFinancial/Customer Benefit

Belt/Champion Attrition

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Infrastructure Design

Assumptions:Operational & Readiness Level Assessment

CEO Ready?Middle Management Ready?Data/Metrics/Process Maturity Not Ready?Internal Talent Ready?

Deployment Model SelectionBuild Knowledge from withinCentralized vs. DecentralizedDeployment Model Speed/Quality1% Rule vs. End-to-End Approach

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Infrastructure Design

RolesDefined

RolesDefined

RolesDefined

RolesDefined

RolesDefined

Well definedProjects

Finance Repon board

CommunicationStrategy

Kick off

Change Mgt.Strategy

Staffingbegins

FinanceTraining ready

Six Sigma Vendorselection begins

CTQ’sIdentification

Strategy

CTQ Manageron board

CompensationStrategy

CareerDevelopment

PerformanceMgmt.Process

Black Beltselection begins

Master BlackBelt on board

Exe/Championtraining begins

Process Mapping& Metrics

Project PipelineStrategy begins

Champions onboard

Financial Mgmt.& ReportingProcess ready

Initial FinancialForecast

(ICOPQ) ready

Green Belts, DataOwners on board

Data AssessmentProject Selection

MINITAB &Visio/iGrafx ready

DataAssessment

Go/No GoChampions

Go/No GoBlack Belts

Green Belttraining ready

Black Belt training startsSIX SIGMA OFFICIAL

LAUNCH

RISK ASSESSMENT

COMPLETED

ON-TARGET

SOME ISSUES

SERIOUS ISSUES

InformationSystems

Finance

CEO

Six SigmaOffice

HumanResources

Go/No GoDECISION4/1 5/1 6/1 8/31

© 2004 End-to-End Consulting, LLC. All rights reserved.

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Information Systems Critical Path

RolesDefined

Well definedProjects

CTQ’sIdentification

Strategy

Exe/Championtraining begins

Project PipelineStrategy begins

Champions onboard

Data AssessmentProject Selection

MINITAB &Visio/iGrafx ready

DataAssessment

Go/No GoChampions

Go/No GoBlack Belts

InformationSystems

Go/No GoDECISION4/1 5/1 6/1 8/31

Data AssessmentWhere’re the Data?Are the Data Available?

When?Cost?

Who are the Data Owners?

© 2004 End-to-End Consulting, LLC. All rights reserved.

Black Belt training startsSIX SIGMA OFFICIAL

LAUNCH

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Finance Critical Path

RolesDefined

Well definedProjects

Finance Repon board

FinanceTraining ready

Six Sigma Vendorselection begins

CTQ’sIdentification

Strategy

Exe/Championtraining begins

Project PipelineStrategy begins

Champions onboard

Financial Mgmt.& ReportingProcess ready

Initial FinancialForecast

(ICOPQ) ready

Go/No GoChampions

Go/No GoBlack Belts

Black Belt training startsSIX SIGMA OFFICIAL

LAUNCH

Finance

Go/No GoDECISION4/1 5/1 6/1 8/31

Financial Validation, Revenue/Cost Drivers?Financial Goal Setting + Audit

© 2004 End-to-End Consulting, LLC. All rights reserved.

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Finance Role for Six Sigma

PROJECT SELECTIONPROCESS

PROJECT PIPELINE

DEFINEMEASURE

ANALYZEIMPROVECONTROL

PROJECT COMPLETION

PROJECT REALIZATION

Partner with Senior Leaders and Champions to identifyRevenue and Operating Cost drivers.

Partner with Champions to validate the Project ICOPQ(80% CL). Report on Project Pipeline Financial Forecast

Sign-off on ICOPQ on Project Charter (80% CL)

Review Project periodically to validate: • COPQ (85% CL)• Pre-Implementation Cost Benefit Analysis (90% CL)• Post-Implementation Cost Benefit Analysis (95% CL)

Sign-off on Project Completion once the Project is officiallytransitioned back to the Process Owner (Control Plan) and the Project Primary metric is under Control (Control Charts)

Book HARD Six Sigma Financial Savings holisticallythroughout the company for 12 months

Partner with Senior Leaders and Champions to identify driversof Revenue and Operating Cost.

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Your & CEO’s Critical Path

RolesDefined

RolesDefined

Well definedProjects

CommunicationStrategy

Kick off

Change Mgt.Strategy

FinanceTraining ready

Six Sigma Vendorselection begins

CTQ’sIdentification

Strategy

CTQ Manageron board

Master BlackBelt on board

Exe/Championtraining begins

Process Mapping& Metrics

Project PipelineStrategy begins

Champions onboard

Go/No GoChampions

Go/No GoBlack Belts

Black Belt training startsSIX SIGMA OFFICIAL

LAUNCH

CEO

Six SigmaOffice

Go/No GoDECISION4/1 5/1 6/1 8/31

StrategyCritical: CTQ/CTCChampion SelectionProject Pipeline Creation & Management

© 2004 End-to-End Consulting, LLC. All rights reserved.

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HR Critical Path

RolesDefined

Well definedProjects

CommunicationStrategy

Kick off

Change Mgt.Strategy

Staffingbegins

CTQ’sIdentification

Strategy

CTQ Manageron board

CompensationStrategy

CareerDevelopment

PerformanceMgmt.Process

Black Beltselection begins

Master BlackBelt on board

Process Mapping& Metrics

Project PipelineStrategy begins

Champions onboard

Green Belts, DataOwners on board

Go/No GoChampions

Go/No GoBlack Belts

Green Belttraining ready

Black Belt training startsSIX SIGMA OFFICIAL

LAUNCH

HumanResources

Go/No GoDECISION4/1 5/1 6/1 8/31

Do not Underestimate the Power of HR

© 2004 End-to-End Consulting, LLC. All rights reserved.

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Critical HR Success Factors

“Put the Right People on the Bus, thenDrive the Bus” - Jim Collins

Low Attrition: Everyone in the company focuses on selectingnew projects, growing the business & enhancing the customerexperience. Rather than dealing with employee attrition &dissatisfaction.

Future Leaders: Clear development & transition plan fromMiddle/Line Managers to Leadership Roles. These Leaders willdevelop new Leaders - New Six Sigma Mindset.

Overcome Poor Support System: Best Black Belts make up forpoor Champion selection and Lack of Support System.

Shorter Cycle Time: Projects & Learning Curve

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Infrastructure Design Capacity Planning

10550100%Black Belts (full-time)

543310%Financial Reps

N/AN/A10%5%5%5%

100%10%100%25%

% TimeAllocation

1100HR Representative40020010050Team Members

1111Deployment Leader

4020105Process Owners

8421Project Workshops

8040200Yellow Belts

2210Master Black Belts

8040200Projects in Pipeline

201053Champions

301555Green Belts (part-time)

4020105Resources Required

“Failing to Plan is Planning to Fail” - John Wooden

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Benefits & Risks

Spending Time on Providing your Company with Direction Minimizesthe Opportunity to Fail and Reduces the Deployment Cost

The ability to deploy Six Sigmaeffectively depends on making

decisions that are critical to yourCustomers and the heath of yourbusinesses. It forces us to think

strategically and critically on“where” to allocate our limitedresources to fix the most critical

issues. It forces us to make Go/NoGo decisions and think about what

is critical vs. what is not.

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Q&A