1、Six Sigma What It is How It Affects Human Resources,Ronald D. Snee K. W. Tunnell Consulting November 13, 2001,What is Six Sigma ?,Measure of how well a process is performing - Six Sigma process produces 3.4 defects per million opportunities - Most companies are at 3-4 sigma level Philosophy of reduc

2、ing defects so we can improve customer satisfaction and reduce costs Business Strategy that increases process performance resulting in enhanced customer satisfaction and improved bottom line ($).,What is Six Sigma?,Improvement Breakthrough Systematic, Focused Approach Right Projects - Linked to Busi

3、ness Goals Right People - Selected & Trained Project Management - Management Reviews Sustaining Gains - Identify New Projects Right Results - Process & Financial($),Process Thinking Process Variation Facts, Figures, Data Define, Measure, Analyze, Improve, Control 8 Key Tools - Linked and Sequenced S

4、tatistical Tools Minitab Critical Few Variables,INITIATIVE METHODS & TOOLS,ROLES OF LEADERS,Management Team,Project Champion,Master Black Belt,Green Belt,Black Belt and Team,Functional Groups HR, Finance, IT Engg, QA, etc.,Six Sigma Improvement Strategy,Phase 0: Process Definition Phase I: Process M

5、easurement Phase II: Process Analysis Phase III: Process Improvement Phase IV: Process Control,8 Key Six Sigma Tools,Maps and Metrics Cause and Effect Matrix Gage R&R Study Capability Analysis Failure Mode and Effects Analysis Multi-Vari Analysis Design of Experiments Control Plans including Statist

6、ical Process Control Advanced tools are used as needed to speed up improvement,Some Manufacturing Black Belt Projects,Increase process yield $300k Increase process capacity $400k Increase dryer throughput $130k Reduce process downtime and scrap $320k Reduce caustic use of Process Z $2000k Material l

7、oss: Reduce scrap & increase yield $150k Reduce wet milling operations costs $300k,Topics of Non-Manufacturing Projects,Billing Energy Reduction Engineering Environmental Finance & Accounting Human Resources Information Technology Internal Audits Inventory Reduction Legal,Logistics - Transportation

8、Customer Service Maintenance Planning and Scheduling Product Design Purchasing QC Lab Safety Sales Shipping,Projects in Human Resources,Reduce cycle time on hiring process Increase “hit rate” on job applicants Employee turnover reduction Overtime reduction Reducing staffing shortages Cycle Time Redu

9、ction for Long-Term Disability Application Process,Long Term Disability Application Process,Improvements,Supplier Processes - Renegotiate sub-contractors terms - New case management reporting - Review of case turn-around time performance Dupont Processes - Greater use of email and intranet - Case tr

10、acking and reporting database added - Use of performance metrics at SBU and sites - Ongoing communication, training and education,Benefits,Average Cycle Time reduced 50-70% Process performance now meeting customer requirements of decisions in 45 days. Hard savings of $192,000. - Reduction in extende

11、d short-term disability payments. - 70% reduction in Independent Medical Evaluation fees paid to Supplier. - Reduction of ongoing administrative fee paid to Supplier.,Recognition and Reward forSix Sigma,Recognition Vehicles - Company T,Written feedback via e-mail Written feedback via recognition boa

12、rd Verbal feedback via - Voice mail - One-on-one - Shift meetings Company totems Gift certificates/luncheons/coffee/donuts Annual recognition program Quiz money Performance evaluation Customer trips Career plans,Recognition and Reward at General Electric,“As with every initiative, we backed Six Sigm

13、a up with our rewards system” Jack Welch, CEO 40% of annual bonus related to Six Sigma activities Stock option grants for Black Belts Green Belt certification required for promotion “With Six Sigma permeating much of what we do, it will be unthinkable to hire, promote or tolerate those who cannot, o

14、r will not, commit to this way of work” Jack Welch, CEO General Electric USATODAY 2/27/98,Black Belt Compensation at Company Z,Base Pay - Potential increase at time of selection - Retain current salary grade - Common job code for full-time participants - Normal group performance review and merit pay

15、 Incentive Compensation - Special plan for Black Belts - Target award at 15% of base pay - Performance rating on 0 - 150% of scale - Measured against key project objectives - Participation ends at end of Black Belt assignment,Six Sigma Recognition Program,Company K,Black Belt Recognition,Selection -

16、 Six Sigma Pin Certification - $5,000 Certification Bonus - Six Sigma Diploma/Plaque Project Completion Bonus Awards - $500 to $5,000 in cash or stock options available Granted by Project Champion Approved by Six Sigma Recognition Committee,Black Belt Recognition (cont.),Six Sigma Spirit Awards - Ma

17、de by Project Champion - Recognizes and rewards efforts and achievements during projects with individual and team awards theater/movie tickets,dinners, t-shirts, spot cash bonuses, etc. Six Sigma Success Plaque - Awarded at completion of first project Engraved placard for project Plaque designed to

18、add multiple projects as completed,Company K - Recognition Program(Contd),Green Belt Recognition - Similar to Black Belt recognition - No certification bonus Project Team Member Recognition - Similar to BB and GB Recognition - No certification awards Annual Six Sigma Recognition event - Presentation

19、 of key projects - Dinner reception with senior leadership,Summary,Six Sigma - It is different - It works if you follow the process - Produces significant bottom line results Change is required by all persons who get involved with the initiative Six Sigma will last as long as it produces bottom line

20、 results ($) SHOW ME THE MONEY($),Show Me The Money ($),References,Blakleslee, J. A., Jr. (1999) “Implementing the Six Sigma Solution”, Quality Progress, July 1999, 77-85. Breyfogle, Forest W. III (1999) Implementing Six Sigma Smarter Solutions Using Statistical Methods, Wiley-Interscience, John Wil

21、ey and Sons, New York, NY. Breyfogle, Forrest W., Cupello, J. M., and Meadows, B. (2001) Managing Six Sigma, John Wiley and Sons, New York, NY. Eckes, G. (2001) Six Sigma Revolution, John Wiley and Sons, New York, NY Hahn, Gerald, J., Hill, William J., Hoerl, Roger W., and Zinkgraf, Stephen A. (1999

22、) The Impact of Six Sigma Improvement-A Glimpse into The Future of Statistics The American Statistician, August 1999.,References,Harry, Mikel J. (1998) “Six Sigma: A Breakthrough Strategy for Profitability”, Quality Progress, May 1998, 60-64. Harry, Mikel and Schreoder, Richard (2000) Six Sigma The

23、Breakthroygh Management Strategy Revolutionizing the Worlds Top Corporations, Currency Doubleday, NY, NY Hoerl, R. W. (1998) “Six Sigma and the Future of the Quality Profession”, Quality Progress, June 1998, 35-42. Hoerl, R. W. and Snee, R. D. (2002) Statistical Thinking - Improving Business Perform

24、ance, Duxbury Press, Pacific Grove, CA Maguire, Miles (1999) “Cowboy Quality Mikel Harrys Riding Tall in the Saddle as Six Sigma Makes its Mark.” Quality Progress, October 1999, 27-34. Pande, P., Neuman, R., and Cavanuagh (2000) The Six Sigma Way, McGraw-Hill, New York, NY.,References,Pyzdek, T. (19

25、99) The Complete Guide to Six Sigma, Quality Publishing, Tucson, AZ Pyzdek, T. (2000) The Six Sigma Handbook, McGraw-Hill, New York, NY Quality Engineering (2000) Volume 12, No. 3. Five articles on Six Sigma. Snee, R. D. (1999) “Statisticians Must Develop Data-Based Management Systems as Well as Create Measurement Systems.” International Statistical Review, 67, No.2, August 1999, 139-144. Snee, R.D. (1999) “Why Should Statisticians Pay Attention to Six Sigma?” Quality Progress, Sept. 1999, 100-103. Snee, R. D.(199