Upload
nguyenkhanh
View
213
Download
0
Embed Size (px)
Citation preview
What is 6 Sigma?What is 6 Sigma?
Near Perfection Goal in Meeting Customer Requirements
Unifying Framework to Achieve, Sustain & Maximize Business Success
Cultural Change to Align Processes, Customer Satisfaction & Profitability
Sigma is a Measure of Process Variation
Goal of 6 Sigma = 3.4 Defects per 1 Million Opportunities
Critical Customer Requirement
Product or Service Output
Mean
Defects: Service
unacceptable to customer
Variation
Variation
Near Perfection GoalNear Perfection Goal
Most Transactional Organizations Operate at 3.5 Sigma or 22,750 Defects per 1 Million Opportunities
Why is 99.5% Defects not Good Enough?(4.1 Sigma/4,600 Defects)
2 Accidents/day at Major Airports210 Minutes/month Without Electricity20,000 Pieces of Mail Lost Every Hour100,000 Wrong Drug Prescriptions Dispensed each Year
Near Perfection Goal, Con’t.Near Perfection Goal, Con’t.
Unifying Framework GoalUnifying Framework Goal
Turn S
trategy into Action
Mea
sure
& D
rive
Acc
ount
abili
ty
Enterprise Strategy / Goals
Global Processes
BU Strategy / Goals
BU Processes
BU 6 Sigma Projects
Personal SMART Goals
Daily Work
Profit
Good Processes
Cultural Chance to Align ProcessesCultural Chance to Align ProcessesCustomer Satisfaction & ProfitabilityCustomer Satisfaction & Profitability
Happy Customers
Of What does the 6 Sigma Of What does the 6 Sigma Deployment Consist?Deployment Consist?
Getting Leadership Commitment
Full Time 6 Sigma Leaders
Deployment Champions (Full Time)Master Black Belts (Full Time)Black Belts (Full Time)Green Belts (Part Time)Yellow Belts (Part Time)
Incentives & Accountability
Measurement
Customer / Market Focused
6 Sigma’s Two Types of Methodologies6 Sigma’s Two Types of Methodologies
Define CharterStakeholder AnalysisVoice of the CustomerProcess Map “As Is”Risk Analysis
Measure Critical Customer RequirementsBaselineMeasurement Plan
Analyze Statistical Analysis of DataProblem StatementRoot Cause
Improve Develop SolutionsEvaluate & Select SolutionsCommunicateNew Process Development
Control Control PlanTransfer to Process Owner
“Think of Yourself as a Navy Seal Parachuted in the Middle of a Conflict.”
DMAIC:
Define CharterStakeholder AnalysisVoice of the CustomerRisk Analysis
Measure Critical Customer RequirementsPerformance CapabilityQuality Function Deployment
Explore Best Fit ConceptsCapability AssessmentProcess Design
Develop Detail DesignProduction DesignValidationsPilot
Implement Complete TestingFull ImplementationTransfer Ownership to OwnerControl Plan
DMEDI
6 Sigma’s Two Types of Methodologies, Con’t.6 Sigma’s Two Types of Methodologies, Con’t.
6 Sigma Benefits to Cat Financial6 Sigma Benefits to Cat Financial
20,000K
15,000K
10,000K
5,000K
0
Comply Commitment Embrace2001 2002 2003
Application ExampleApplication Example
In 2002 Cat Financial acquired FCC Equipment Finance, a small non-captive lender, specializing in constructionequipment. Most of the FCC processes were manual,while Cat Financial had integrated a front-end applicationby Thoughtworks, called “FinancExpress.” A 6 Sigma teamwas chartered to assess FCC’s ability to handle expectedvolume growth. The solution would involve either processchanges, a shift in resources (people) or automation.
FCC Business Platform
Objective: Develop a platform to process business at FCC based upon growth projections.
BRM = 19
High Risk
- Reduce Credit Turnaround to 1 day- Automate Document Processing- Reduce SM administration time- Improve cost/transaction ratio- GROW BUSINESS
Currently• 4-5 days turnaround• $4.6 Million per FTE• 50 total FTE
• $200 Mil Increase in 2 yr• Reduce 5 FTE in 2002
- People- Technology- Processes
Implement FE Front-End – App, Credit, DocsPend FE Back-End Eliminate Credit Approving PurchaseUtilize CFSC DocsAutomate UCCEliminate Renewal Insurance follow-up
Recommendations
1. FE IT Charter2. Training Plan
6 Sigma Challenges6 Sigma Challenges
Managing Resources including Information Technology
Maintaining Active Project Pipeline
Keeping Organization Engaged
Changing Business Needs