15 Sixsigma 04 4s4j3j

Six Sigma Don Rochester Six Sigma Coordinator, BNI

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 1 used, reproduced or disclosed without Bechtel’s prior written permission.

What is Six Sigma? Six Sigma uses a rigorous set of tools and methodologies designed with one purpose in mind — to produce a dramatic improvement in work quality, profitability, customer and employee satisfaction, and leadership of business enterprises. "Six Sigma is the new way of life for doing business in our company.” Adrian Zaccaria President & Chief Operating Officer Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 2 used, reproduced or disclosed without Bechtel’s prior written permission.

Could Six Sigma Work in Bechtel? 1985-92

1993-94

1994-96

Motorola

ABB

Allied Signal 3M

Texas Instruments

1996-97

1997-99

2000 …

Avery Dennison

AMEX

General Electric

Bombardier

Honeywell

Lockheed Nokia Mobile Martin Phones Praxair USPS Polaroid Corporation

Dow

Crane

Air Products & Chemicals Celanese Citigroup DuPont Ford

Shimano

Home Depot

Sony

Johnson Controls Shell Wal-Mart

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 3 used, reproduced or disclosed without Bechtel’s prior written permission.

Bechtel’s Improvement Framework

Six Sigma

PerformanceBased Leadership (PBL)

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 4 used, reproduced or disclosed without Bechtel’s prior written permission.

Six Sigma Results Investments 5,300 4,500

294

Returns

331

2,500 94

2001 / 2002 / 2003

Six Sigma Team

Plan

2001 / 2002 / 2003

PIPs

Soft

2001 / 2002 / 2003

Soft

Costs

Hard

2003 Accomplishment: Achieved SelfSufficiency

Hard Soft Hard

2001 / 2002 / 2003

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 5 used, reproduced or disclosed without Bechtel’s prior written permission.

Key to Sustained Six Sigma Success

“Beware of generational degradation.”

 Success

= Data-driven, processfocused in the way we do business Results = process performance improvements  Quality = Strategic and tactical elements of Six Sigma

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 6 used, reproduced or disclosed without Bechtel’s prior written permission.

Building Quality into Six Sigma

ss er gor P

20 01

Build Capability and Competency

Institutionalize

 Training in every GBU and key services  Incentives and goals tied to results

Time

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 7 used, reproduced or disclosed without Bechtel’s prior written permission.

Building Quality into Six Sigma

ss er gor P

20 02

Legitimize with Benefits

Institutionalize

 World class PIP returns & cycle times  Opportunistic PIPs to address “pain”  Infrastructure Built (i.e., Roles defined, Financial Reporting in place) Time

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 8 used, reproduced or disclosed without Bechtel’s prior written permission.

Building Quality into Six Sigma

ss er gor P

20 03

Achieve SelfSufficiency

Institutionalize

 14 Master black belts certified  In-house training  Strategic PIPs to address “gain” Time

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 9 used, reproduced or disclosed without Bechtel’s prior written permission.

Building Quality into Six Sigma 20 04

 Strategic Gap Analysis to tie PIPs to the business / for the business  Engage functions to institutionalize & focus on process quality

ss er gor P

Sustain SelfSufficiency

Institutionalize

Time

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 10 used, reproduced or disclosed without Bechtel’s prior written permission.

Key to Sustained Six Sigma Success

“The first five years is about making Six Sigma visible; e next five years is about making it invis

Success = Quality

=

Data-driven, process-focused in the way we do business Results = process performance improvements Strategic and tactical elements of Six Sigma

Acceptance = embedding Six Sigma into our c

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 11 used, reproduced or disclosed without Bechtel’s prior written permission.

How Bechtel’s Deployment Is Organized Deputy COO Team

Black Belt

Champion Yellow Belt

Stakeholders

Executive Sponsor President of Business Line Deployment Sponsor Operations Manager Deployment Champion

Master Black Belt

Functional/ Project Managers Champions

Process Owners Yellow Belts

Deployment Coordinator

Black Belts

All Employees Team

Other Managers Stakeholders

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 12 used, reproduced or disclosed without Bechtel’s prior written permission.

Strategic Planning σ Strategic Gap Analysis 

Starts with VOC, Mission and Vision



Strategic objectives and goals identified



Core processes to mission identified



Gaps in core process performance determined



Business Cases developed – PIPs to close gaps

σ PIP prioritization

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 13 used, reproduced or disclosed without Bechtel’s prior written permission.

Process Optimization Methodologies σ Process Improvement 

IMAIC – Black Belt/Green Belt

σ Process Innovation/Redesign 

Design for Six Sigma (DFSS) – Black Belt/ Green Belt

σ Process Management 

Process Owners/Yellow Belts

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 14 used, reproduced or disclosed without Bechtel’s prior written permission.

Acceptance / Leadership of Six Sigma “Highs and Lows” of Change 20 01

Did we select the right people?

no Cl anoi t azi nagr O

I didn’t need a PIP to tell me that!

That’s not a PIP!

Time

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 15 used, reproduced or disclosed without Bechtel’s prior written permission.

Acceptance / Leadership of Six Sigma “Highs and Lows” of Change

no Cl anoi t azi nagr O

20 02

This pain is not worth the gain.

Are our Champions engaged? We’re running out of PIPs -- PIP starved. Time

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 11 used, reproduced or disclosed without Bechtel’s prior written permission.

Acceptance / Leadership of Six Sigma “Highs and Lows” of Change 20 03

I need a black belt NOW!

no Cl anoi t azi nagr O

I want an exblack belt on my project.

Time

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 17 used, reproduced or disclosed without Bechtel’s prior written permission.

Acceptance / Leadership of Six Sigma “Highs and Lows” of Change 20

o Cl anoi t azi nagr O

04

Time

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 18 used, reproduced or disclosed without Bechtel’s prior written permission.

Ea r l y P I Ps B usi nes s ca ses devel o ped f r om

br ai ns t or m i ng

S or e t h um b app r oach t o ea r l y P I Ps S ubj ect m a t t er f ocus ed on r edu ci ng d ef ec t s,

cost o r t i m e

P r i m ar y i m pr o vem en t w a s pr o cess s t abi l i t y Fu t ur e PI Ps B usi nes s ca ses ar e de vel op ed f r om SG A a nd k ey pr o cess m et r i cs S ubj ect

m a t t er

i s f o cused on p r ocess i m pr ov em ent

P r i m ar y i m pr o vem en t i s i n i n cr ease d pr oces s capa bi l i t y

σ

σ

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 19 used, reproduced or disclosed without Bechtel’s prior written permission.

Examples of Success

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 20 used, reproduced or disclosed without Bechtel’s prior written permission.

From February 2001 the Level 2 or 3 Cha gap from the lower c of ~$150,000 per ye A detailed process was not able to mod at the required depth frequency of the def compliance, improp direction to proceed inconsistent guidanc studies were conduct an agreement of onl deemed sufficient fo

Identify:

Measure:

INITIATE: During the Initiate p APM and Functional Management Schedule deviations from the curr in order to afford management tim value should be greater than $100, minimum threshold amount. A pr reasonable target goal. Upon furt

In 2001, the average time for Tren represents $2,100,000 of total cost and a M&M PIP have been compl effort. It was decided that a Desig

"DEFINE: * This is a leveraged

DFSS SUMMARY

Each month, BSC ex Monthly Performanc PIP's objective is to by 20%, saving $57,

A detailed process m was not able to mode were surveyed, as th poor management of details, and possibly quality of EVs/ETCs by communications, variables (xs). An F competency as poten

Identify:

Measure:

Project’s Monthl

END OF MODULE 15 16) PFSR '04.ppt

Bechtel Confidential. Contains information that is confidential and proprietary to Bechtel or its s, clients or suppliers, and may not be 24 used, reproduced or disclosed without Bechtel’s prior written permission.