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DESIGN FOR
SIX SIGMA
CUSTOMER & COMPETITIVE INTELLIGENCE FOR
PRODUCT, PROCESS, SYSTEMS & ENTERPRISE EXCELLENCE
DEPARTMENT
OF STATISTICS
[email protected]
OFFICE: +1-208-885-4410
DR. RICK EDGEMAN, PROFESSOR & CHAIR – SIX SIGMA BLACK BELT
S S
IX
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.
DEPARTMENT
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
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. Why “sigma”? The word is a statistical term that
measures how far a given process deviates from perfection.
The central idea behind Six Sigma is that if you can measure
how many “defects” you have in a process, you can systematically
determine how to eliminate those and approach “zero defects”.
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.
“What is Six Sigma? The Roadmap to Customer Improvement”
www.ge.com/sixsigma/makingcustomers.html
Design for Six Sigma at GE:
DFSS is changing GE. 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.
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.
What We Do. GE Corporate Research and Development
Formerly posted at: www.crd.ge.com/whatwedo/sixsigma.html
Another View of Design for Six Sigma:
DFSS is the change in the product design organization from a deterministic to a
probabilistic culture. Our people were trained to incorporate statistical
analysis of failure modes, both in products and processes. 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. The design organization changed from a
“factor-of-safety” mentality to one in which there was a quantitative assessment
of design risk. Four elements of design are most critical to the effort:
•Design for producibility (design for manufacturing and assembly);
•Design for Reliability;
•Design for Performance (technical requirements); and
•Design for Maintainability.
“Design for Six Sigma: 15 Lessons Learned”, Quality Progress, Vol. 35, No. 1, pp. 33-42, January 2002.
Voice of the Customer
Measure
Analyze
Improve
Control
Define
Institutionalization
The DMAIC Model
Define the problem
and customer
requirements.
Define
Measure defect rates and
Document the process in its
current incarnation.
Control
Measure Analyze process data and
Determine the capability
of the process.
Improve the process and
remove defect causes.
Control process performance
Improve
Analyze
and ensure that defects
do not recur.
Six Sigma Innovation & the DMAIC Algorithm
Team Charter & Project Scoping:
Of similar importance & structure as in DMAIC
Team Charter
Table of Contents
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
EXECUTIVE SUMMARY …………………………………………………3
PROJECT OBJECTIVES…………………………………………………3
PROJECT SCOPE ……………………………………………………..…3
BUSINESS CASE …………………………………………………………3
PROJECT ORGANIZATION ……………………………………………3
SCHEDULES……………………………………………………………….4
COMMUNICATION PLAN ……………………………………………...4
PROJECT CONTROL PROCEDURES ……………………...…………4
PROJECT ASSUMPTIONS ……………………………..………………4
CONFLICT RESOLUTION ………………………………………………. 5
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
Eight Steps for Establishing Project Boundaries
1. Identify the customer
– Who receives the process output?
(May be an internal or external customer)
2. Define customer’s expectations and needs
– Ask the customer
– Think like the customer
– Rank or prioritize the expectations
3. 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. Identify CTQ’s for those deliverables
– What are the specific, measurable attributes that are most critical in the deliverables?
– Select those attributes that have the greatest impact on customer satisfaction.
Eight Steps for Establishing Project Boundaries
5. Map your process
– Map the process at it works today (as is).
– Map the informal processes, even if there is no formal, uniform process in use.
6. 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. Define the project to improve the CTQ’s you have selected
– Define the defect to be attacked
The SIPOC Model
Inputs
Process
Suppliers
Outputs
Customers
Steps
Inform Loop
Six Sigma COPIS Model
Outputs
Process
Inputs
Suppliers
Customers
Steps
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.
From Concept to Market: the Voice of the Customer
DESIGN FOR
S IX SIGMA
DFSS LESSONS LEARNED & LEADERSHIP
DEPARTMENT
OF STATISTICS
[email protected]
OFFICE: +1-208-885-4410
DR. RICK EDGEMAN, PROFESSOR & CHAIR – SIX SIGMA BLACK BELT
Design for Six Sigma at GE:
DFSS is changing GE. 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.
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.
What We Do. GE Corporate Research and Development
Formerly posted at: www.crd.ge.com/whatwedo/sixsigma.html
Design for Six Sigma
Define-Measure-Analyze-Design-Verify (DMADV)
Define customer requirements and goals for the process,
product or service.
Measure and match performance to customer requirements.
Analyze and assess the design for the process, product or service.
Design and implement the array of new processes required for
the new process,product or service.
Verify results and maintain performance.
Improvement–Focuses on high priority problems in business
processes. This uses the DMAIC methodology: Define, Measure,
Analyze, Improve, and Control.
Design–Design For Six Sigma (DFSS) addresses new or
fundamentally poor processes. The methodology is called the DMADOV
model: Define, Measure, Analyze, Design, Optimize, and Verify.
Business Process Management –aids in definition and
management of operations and activities in terms of core and enabling
processes. The resulting process management systems provide a
foundation of process definition and baseline data for all process design
and improvement activities.
Define
Measure
Analyze
Design
Verify
the Project
Customer
Requirements
Concepts
The Product
Design
Performance
1 Develop
Charter
1 Understand
VOC
1 Identify Key
Functions
1 Ident. & Prior.
High-level
Design Require.
1 Conduct and
Evaluate Pilot
2 Develop
Project Plans
2 Translate VOC
Needs into Req.
(CTQs)
2 Prioritize the
Functions
2 Develop Design
Requirements
2 Implement the
Design
3 Develop Org.
Change Plan
3 Prioritize CTQs
3 Generate Concepts
3 Develop HighLevel Design
3 Close Project
4 Identify Risks
4 Reassess Risk
4 Evaluate & Select
Concepts
4 Test High-Level
Design
5 Tollgate Review
5 Tollgate Review
5 Review Concepts
5 Ident. & Prior.
Detailed Design
Elements
6 Tollgate Review
6 Develop the
Detailed Design
7 Test Det. Design
8 Develop Proc.
Mgt. Plans
9 Review Pre-Pilot
Design
10 Tollgate Review
STEP
TOOLS
OUTPUTS
DEFINE the
project
Market Analysis Tools:
Project Charter
Develop a clear project
definition.

Develop organizational
change plans, risk
management plans, and
project plans.

Mkt. Forecasting Tools;
Customer Value Analysis;
Technology Fore. &
Visioning;
Competitor Analysis.
Process Analysis Tools:
Control Charts;
Pareto Charts.
Project Planning Tools:
Work Breakdown
Structures;
PERT Charts;
Gantt Charts;
Activity Network Diagrams.
DMADV Specific Tools:
Project Charter;
In/Out of Scope Tool;
Organizational Change Plan
Project Plan
Organizational Change
Plan
Risk Management Plan
Tollgate Review &
Storyboard Presentation
STEP
TOOLS
OUTPUTS
MEASURE
Customer Req.
Cust. Segmentation Tree
Prioritized CTQs
Data Collection Plan
Updated risk
management plan and
multistage project plan,
if appropriate.

Collect VOC Data
Translate the VOC into
design requirements CTQs

Identify the most
important CTQs.

Customer Research Tools:
Interviews;
Contextual Inquiry;
Focus Groups;
Surveys.
VOC Table
Affinity Diagrams
Kano Model
Perform. Benchmarking
Revise Risk
Management Plan

If necessary, develop a
multistage project plan.

QFD Matrix
CTQ Risk Matrix
Multistage Plan
Tollgate Review
Tollgate Review &
Updated Storyboard
STEP
TOOLS
OUTPUTS
ANALYZE
Concepts:
QFD Matrix:
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
TOOLS
OUTPUTS
DESIGN the
product
QFD Matrix
Tested and approved
high-level design
Simulation
Develop the high-level
and detailed design.

Test the design
components.

Prototyping
Design Scoreboard
FMEA / EMEA
Prepare for pilot and
full-scale deployment.

Planning Tools
Process Management
Chart
Tollgate Review Forms
Tested and approved
detailed design
Detailed updated risk
assessment
Plans for conducting the
pilot
Completed design
reviews and approvals
Tollgate Review &
Updated Storyboard
STEP
TOOLS
OUTPUTS
VERIFY Design
Performance
Planning Tools
Working Prototype with
Documentation
Data Analysis Tools:
Control Charts;
Pareto Charts.
Plans for full
implementation
Conduct the Pilot and
Stress Test and Debug
the Prototype.


Implement the Design.
Transition
Responsibility to the
Appropriate People in
the Organization.


Close the Team.
Standardization Tools:
Flowcharts;
Checklists;
Process Management
Charts.
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
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.
DFSS as a Growth
Strategy:
Lesson 2
DFSS grows into program profits in direct
proportion to the size of the initial investment.
The more the initial investment to eliminate
(adverse) design issues, the greater the
life cycle profits that will be realized.
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.
Note: the corporate example that produced the most impressive results was a firm
where DFSS involvement was directly linked to management rewards. This firm
REQUIRED senior management to spend 30% of its time on DFSS activity.
DFSS as a Growth Strategy:
Lesson 4
Leaders, especially middle managers,
need to be selected, prepared and trained
much earlier in the process
to achieve desired levels of commitment.
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, the heart and soul of a business,
then adequate dollars, time and resources must be incorporated
into the annual budget to ensure the company’s success.
Success is rarely the result of unplanned, fortuitous accident.
Serving Customers:
Lesson 1
DFSS as a Means of
Continual customer feedback and ideas are essential to
achieve a partnership with the customer.
In an age where competition for customers is relentless,
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.
DFSS as a Means of
Serving Customers:
Lesson 2
A DFSS must be inclusive, and a conscious effort must
be made to embed it in the fabric of the entire organization.
All employees must understand how it works and why it
benefits the customer, 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.
Substantial elements often come from suppliers
and subcontractors.
If they are not integrated into the DFSS activity,
then the final product is sub-optimized.
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.
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.
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 2
Enlarging the responsibility of design engineering to
follow the product from start to finish creates
ownership that changes the approach to product design.
It accelerates the incorporation of lessons learned
outside the design studio.
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.
The People of Six Sigma
Six Sigma Champions
 Create the vision of Six Sigma for the company.
 Define the path to implement Six Sigma across the organization.
 Develop a comprehensive training plan for implementing the Breakthrough







Strategy.
Carefully select high-impact projects.
Support development of “statistical thinking”.
Ask Black Belts many questions to ensure that they are properly focused.
Realize the gains by supporting Six Sigma projects through allocation of
resources and removal of roadblocks.
Hold the ground by implementing Black Belt recommendations.
Make sure that project opportunities are acted upon by the organization’s
leadership and the finance department.
Recognize people for their efforts.
Master Black Belts
 Understand the big business picture.
 Partner with the Champions.
 Get certified as Master Black Belts.
 Develop and deliver training to various levels of the organization.
 Assist in the identification of projects.
 Coach and support Black Belts in project work.
 Participate in project reviews to offer technical expertise.
 Help train and certify Black Belts.
 Take on leadership of major programs.
 Facilitate sharing of best practices across the corporation.
Black Belts
 Act as Breakthrough Strategy experts and be Breakthrough Strategy












enthusiasts.
Stimulate Champion thinking.
Identify the barriers.
Lead and direct teams in project execution.
Report progress to appropriate leadership levels.
Solicit help from Champions when needed.
Influence without direct authority.
Determine the most effective tools to apply.
Prepare a detailed project assessment during the Measurement phase.
Get input from knowledgeable operators, first-line supervisors, and team
leaders.
Teach and coach Breakthrough Strategy methods and tools.
Manage project risk.
Ensure that the results are sustained.
Black Belt Activities
MENTORS: Cultivates a network of Six Sigma individuals at the local
organization or site.
TEACH: Provides formal training of local personnel in new strategies
and tools.
COACH: Provides one-on-one support to local personnel.
TRANSFER: Passes on new strategies and tools in the form of training,
workshops, case studies, and local symposia.
DISCOVER: Finds application opportunities for Six Sigma strategies
and tools, both internal and external (e.g. suppliers and customers).
IDENTIFY: Highlights / surfaces business opportunities through
partnerships with other organizations.
INFLUENCE: Sells the organization on the use of Six Sigma strategies
and tools.
Green Belts
 Function as Green Belts on a part-time basis, while performing
their regular duties.
 Participate on Black Belt project teams in the context of their
existing responsibilities.
 Learn the Six Sigma methodology as it applies to a particular
project.
 Continue to learn and practice the Six Sigma methods and tools
after project completion.
Corporate Six Sigma Leadership
Six Sigma and General Electric
 General Electric CEO, Jack Welch, describes Six Sigma as “the most
important initiative GE has ever undertaken.” GE’s operating income, a
critical measure of business efficiency and profitability, hovered around
10% for decades. In 1995 Welch mandated that each GE operation from
credit card services to aircraft engine plants to NBC-TV work toward
achieving Six Sigma. GE was averaging about 3.5 when it introduced
the program.
 With Six Sigma embedding itself deeper into GE’s processes, they
achieved the previously “impossible” operating margin of 16.7% in 1998
– up from 13.6% in 1995.
 In dollar amounts, Six Sigma delivered more than $300 million to GE’s
1997 operating income and more than $600 million in 1998.
Six Sigma and Raytheon
 Former AlliedSignal executive Daniel P. Burnham,
who became Raytheon’s CEO in 1998, has made Six
Sigma a cornerstone of the company’s strategic
plan.
 By pursuing Six Sigma quality levels throughout the
company, Raytheon to improved its cost of doing
business by more than $1 billion annually by 2001.
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.
How Big is the Service Sector?
 79% of the U.S. Workforce is employed by commercial businesses.
 90% of those employed in manufacturing are actually doing service work –

such as finance, marketing, sales, distribution and purchasing.
So: 79% + (.9)*(21%) = 98% of the U.S. Workforce is involved in “service
work”.
 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.
 BOTH ARE WRONG:
 Customers are more likely to take their business elsewhere because of poor

service than poor products.
Companies like GE have shown that improving internal and external
commercial processes adds to the bottom line and to customer satisfaction
significantly
AlliedSignal
 70,000 Employees
 Chemicals, Fibers, Plastics, Aerospace




Products, Automotive Products.
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
 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.
 Six Sigma Profits in
Service Areas including:
 Order Processing
 Shipping
 Procurement
 Product Innovation
We can’t tell other organizations how to do Six Sigma, but we
can tell them how not to do it. Allied has made mistakes along
the way and, in the process, learned some tremendous lessons.
 Lesson 1: The Organization’s Leadership Must Own
Six Sigma
 Upper management supported Six Sigma, managers below those at the





top saw it as a “flavor of the month”.
Black Belts seen as a nuisance.
Black Belts were using “Six Sigma jargon” while managers were using
business vocabulary. This led to confusion.
SOLUTION: Introduce ALL levels of management to Six Sigma.
Management had weeklong training sessions to understand the methods
of the Breakthrough Strategy and how Black Belt training and experience
could be leveraged. ALSO … how various initiatives “fit together”.
BEGAN TO FOCUS ON PROCESSES – NOT PEOPLE as the source
of problems. Also, understanding of the Breakthrough Strategy provided
a “plan of action”, rather than just a “command” to make something
happen.
Six Sigma Changed the Company Culture and
One of the flaws at Allied is that we had too much vertical
mobility. Managers inch up the same smokestack,
learning more and more about less and less. 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.
Linked AlliedSignal’s Goals, Vision & Activities.




Having recognized the need to train managers in the Six Sigma Breakthrough
Strategy, Allied dedicated the next year to training 1,000 leaders in the organization
in how Six Sigma worked, and in its potential financial impact.
Training sessions lasted 3.5 days and emphasized Six Sigma’s impact on:
 Profitability through improved processes;
 The Crucial role of Black Belts, RATHER THAN teaching statistical processes
involved in achieving Six Sigma.
Initially trained top managers at each of Allied’s 11 Strategic Business Units and
gradually worked their way down the organization to middle management, line
supervisors, and so on.
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. SO … training had to be ongoing.
Allied is not in the business of measuring activity. We are in the business of
measuring results. IF something doesn’t have a positive impact on customer
satisfaction, our shareholders, and employees, and in the process makes a lots of
money, THEN we just flat out aren’t going to do it.”
RICHARD A. JOHNSON, Director of Six Sigma at AlliedSignal
Lesson Two: A Beginning Without an End
 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.
 40% of Black Belts were promoted to departmental or plant
managers. Others left AlliedSignal for higher-paying jobs at suppliers.
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.
 NOW … BLACK BELTS must work at least 18-24 months on a series
of Six Sigma projects prior to a change of roles. TIME &
EXPERIENCE ARE VIEWED AS CRITICAL TO SIX SIGMA
SUCCESS AND THE MATURITY OF THE BLACK BELT.
Lesson Three: Black Belt Retention
Lesson Three - Continued
 AlliedSignal’s Champions & Master Black Belts
 3.5 Day Executive Overview followed by the traditional Four-Month Black
Belt training process.
 MASTER BLACK BELTS are selected from the best of the Black Belts.
 Each of these trains and mentors 10 Black Belts
 Each Black Belt trains and mentors 10 Green Belts.
 NOW: All Salaried Employees are Expected to Undergo the 26 Hours of
Training Required for Green Belt Certification by 2000.
 CHAMPIONS
20
Master Black Belts
70
 Black Belts
2000+
Green Belts
18,000
 Total # of Employees 70,000
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.
 This prevented the company from realizing the full benefits of Six Sigma.
 AlliedSignal recognized that they needed to view suppliers as their partners.
 AlliedSignal began TRAINING its suppliers and offering other technical
assistance.
 To achieve Six Sigma it is important to minimize the number of suppliers,
limiting these to those that have been trained in the Breakthrough Strategy.
 Not only does AlliedSignal provide training, BUT then follows up by
dedicating ITS OWN BLACK BELTS to mentor and work with critical
suppliers. AlliedSignal estimates that for every 300 Black Belts it trains, 100
are either customers or suppliers.
W. 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.
 This maps to one of Deming’s 14 Points for Management:
“DRIVE OUT FEAR”.
 Focus on Processes implies that people are not accused, but
rather, that they are able to investigate processes and be “part
of the solution.”
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.
 Black Belts, the Finance Department, and Executive Leadership must
work in tandem.
 While Black Belts create opportunities for cost reduction and
increased profitability, the company’s Leadership must make sure
that Black Belts focus on the right projects and take action on the
savings opportunities they generate. Finance provides closure to the
effort by ensuring that the savings are returned to the organization’s
bottom line.
Lesson Seven: Initiative Overload
LARRY BOSSIDY, CEO: One of the things I have trouble with is … nonfinancial objectives. Often they’re just as obscure and vacuous as they sound.
•
FIVE ACTIONS TO PERPETUATE SIX SIGMA:
1. 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.
2. Senior management involvement.
3. Continued on-site leadership training, and alignment of goals among divisions
to reinforce Breakthrough Strategy thinking and goals.
4. Requiring Black Belts to dedicate a minimum of two years to working on Six
Sigma projects.
5. Supplier involvement and improvement in Six Sigma initiatives.
Products and services should be improved ONLY to the degree that customer value is increased. Six
Sigma is a program designed to generate money for the company, either through savings resulting
from reduced costs, or from boosting sales by increasing customer satisfaction.
AlliedSignal:
Hindrances to Six Sigma Success
Working on too many improvements at the same time.
Not having someone accountable for the problem.
Not being a process-based company.
A lack of trained and experienced people.
Middle managers who fear uncertainty about future roles.
Lack of metrics focused on customer value-added
processes.
Lack of integrated information and financial systems.
Fragmented, staff-driven approaches.
DESIGN FOR
SIX SIGMA
End of Session
DEPARTMENT
OF STATISTICS
[email protected]
OFFICE: +1-208-885-4410
DR. RICK EDGEMAN, PROFESSOR & CHAIR – SIX SIGMA BLACK BELT