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@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Six Sigma Deployment Plan- A Case Study
The purpose of this document is to show an example for Six Sigma Deployment Plan
in an imaginary beverage company called ABC Company. All the assumptions and
needed information about this company will be stated properly. The deployment plan
will follow the framework in figure 1.
Figure 1 Deployment Plan Framework
The deployment plan will be developed by firstly, analyzing the company's
background information in order to perform two types of analysis; Six Sigma
readiness assessment and risk assessment. Secondly, the results of the two
assessments will be qualitatively analysed to form the final deployment plan.
ABC Company's Profile
ABC is a subsidiary of an international company. The main aspects that affect the
elements of the deployment plan are shown in a mind map in figure 2.
2
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Figure 2 Company's Background – Mind Map
ABC Company's Readiness Assessment
In order to assess the Company's readiness for the Six Sigma journey, a questioner,
adapted from the International Institute for Learning, was filled. The results of this
assessment indicated that:
ABC is a doing great job in terms of listening to the voice of the customer,
however, there is still an area for improvement and Six Sigma can help in
that.
ABC needs to assign a Six Sigma champion to speed up this deployment
journey, train Green Belts and Black Belt, and can improve the decision
making process by building employees' capabilities in using advanced
statistical techniques.
ABC has an improvement opportunity in linking the existing performance
metrics with Six Sigma to gain better benefits.
The detailed readiness assessment is shown in Appendix A.
3
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
ABC Company's Risk Management Plan for Six Sigma Deployment
According to the mind map in figure 2, ABC Company is functional- organization with
multiple organizational level. This creates bureaucracy and complicates the
communication channels. In addition, ABC’s local management reports to the
regional office and they are fully loaded most of the time.
ABC has strict financial procedures where the budget is very difficult to be exceeded;
therefore, any extra spending should be requested in advance.
ABC depends on many low- skilled operators with a low- level of education, In
addition, the other highly skilled employees (Engineers, Accountants..etc) lack of
Problem Solving Skills and Statistics. Employees’ turnover is within the acceptable
limit, however, there is always a risk of losing key employees.
Every employee has clear job description, so it is very difficult to be engaged with
extra tasks unless they are aligned with the management and communicated in
advance.
ABC has SAP (Systems, Applications and Products) so it has a good history for five
year go, and all KPIs (Key Performance Indicators) are tracked and communicated
on a timely basis.
In order to seize the fruits of Six Sigma gradually, and to ensure that there will not be
any interruption for the other improvement programs in the company, the Six Sigma
journey will be deployed over three years. Year 1 starts with Kaizen projects since
the company doesn't have a well-established Six Sigma program in place. In year 2,
Green Belt projects will be introduced in addition to resuming the Kaizen project. In
the final year, the company will start Black Belt projects besides the Green Belts and
Kaizen projects.
This approach will help to create a positive culture around Six Sigma and lean
philosophy, reducing the resistance to change and building trust. As a result, ABC
can benchmark its performance against other similar companies with a confidence
that its performance is improving consistently.
According to the readiness assessment and the above discussion, the risks
associated with Six Sigma deployment were grouped under eight categories:
4
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
1. Organization's Culture 5. Time
2. Six Sigma Infrastructure 6. Information System
3. Projects' Selection 7. Communication
4. Cost 8. Monitoring and Control
The detailed risks and mitigation plans for each risk category are shown in table 1.
Table 1 Six Sigma Deployment- Risk Management
Risk Mitigation Activities Related
Documents
1- Organization's Culture
Lack of management commitment
in terms of attending the meetings,
communicating the right message
at the right time, proving the
sufficient resources (financial,
people, time..etc.) and resolving
conflicts.
Provide specific training for
senior management
Provide clear schedule for the
type of support needed from the
senior management
Keep them engaged in all stages
Training plan
Six Sigma
deployment
timeline
Resistance to change and
resistance to implement the new
proposed solutions because of the
fear of losing jobs, unclear
expectations..etc
Provide cultural-change training
to all employees
Communicate clearly the
purpose of the program and the
progress along the journey
Create and communicate a
reward and recognition program
Training plan
Communication
plan
HR plan
Lack of clear roadmap that links
the Six Sigma efforts to the
company's mission, visions and
values.
Provide a framework for projects'
selection and show the link to the
company's' strategy
Projects'
selection
framework
5
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Table 1 Six Sigma Deployment- Risk Management
Risk Mitigation Activities Related
Documents
2- Six Sigma Infrastructure
Lack of resources in terms of:
champion, sponsors, Black Belts,
Green Belts, finance department
representative, HR representative
and IT representative. This will
slow down the implementation of
the deployment plan and will affect
the quality of the outputs.
Designate officially Six Sigma
champion and projects'
sponsors.
Hire full- time Black Belts and
Master Black Belt.
Provide official nomination for
the needed Green Belts and
other departments’
representatives per each project.
Official roles
and
responsibilities
for the
champion and
the projects'
sponsors
should be
mentioned in
the Six Sigma
kick- off
meeting
HR plan
Team's turn- over which may result
in losing the key personnel in the
deployment plan. Eventually, this
will slow down the implementation
and may increase the costs when
looking for replacement.
Provide rigorous hiring and
selection criteria for the Black
Belts and the Green Belts.
Provide clear career- path for
those Belts.
HR plan
Current educational level and skills
which may be insufficient to
implement the Six Sigma journey.
Provide inclusive training
program that includes: Six
Sigma, statistics, project
management and soft skills.
Training plan
6
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Table 1 Six Sigma Deployment- Risk Management
Risk Mitigation Activities Related
Documents
3- Projects' Selection
Unclear projects' selection criteria
which may result in engaging the
tam in different projects that are not
aligned with the company's
strategy, or suffering from scope-
creep during the implementation.
Utilize projects' selection
framework that links the projects
to company's strategy.
Projects shall be approved by
finance manager and champions
in advance.
Ensure that each project has
sponsor who is responsible for
the continuous monitoring for his/
her project.
Projects'
selection
framework
HR Plan
4- Cost
Lack of fund to cover the hiring and
training expenses and the capital
expenditure for the nominated
projects. This will hinder the
fulfilment of the deployment plan or
could slow it down until getting the
fund
Provide detailed cost-benefits
analysis to rationalize the
needed fund for Six Sigma
journey
Provided detailed yearly
breakdown for the needed fund
Ensure getting the financial
manager’s approval for the plan.
Cost benefits
analysis
5- Time
People may be overloaded with
other tasks which will affect the
timeline and the quality of their
outputs
Hire the needed number of
resources
HR plan
7
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Table 1 Six Sigma Deployment- Risk Management
Risk Mitigation Activities Related
Documents
There might be too many projects
to implement without clear priorities
which will affect the implementation
of the plan
Provide timely-phase plan over
three years and have prioritized
list of projects
Six Sigma
deployment
timeline
6- Information System
Lack of data which may create
difficulties in baselining the current
level of performance and figuring
the improved performance later on.
This risk is currently low because
ABC company has SAP
(systems, Applications and
Products) software for five years
ago and all historical data is
available
-
The current measurement system's
capability in terms of bias, linearity,
stability, repeatability and
reproducibility.
Conduct full measurement
system analysis before
commencing the deployment
plan
Accuracy of company's data
capturing system will be checked
one by one according to each
identified project/ initiative
-
7- Communication
Lack of communication about the
deployment plan which may cause
resistance to change, unclear
expectations, receiving wrong
information, distributing project
information to track progress..etc
Develop detailed communication
plan that covers the needed
reports and meetings
Communication
plan
8
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Table 1 Six Sigma Deployment- Risk Management
Risk Mitigation Activities Related
Documents
8- Monitoring and Control
Failing to meet the management
expectations about the Six Sigma
deployment because of the
deviation from the deployment
plan, as a result the financial
benefits will not be granted.
The performance will be
reviewed using a balanced score
card and information will be
shared as per the
communication plan
Champion will review the
deployment plan regularly to
ensure its applicability and
amend it when needed
Conduct benchmark for ABC
performance against similar
companies.
Performance
tracking plan
Communication
plan
ABC Company's Six Sigma Deployment Plan
The Six Sigma deployment plan consists of eight parts which are the critical success
factors for ABC Company as shown in figure 3.
Figure 3 ABC Company's Critical Success Factors for Six Sigma Deployment
9
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Part 1: Linking Six Sigma to Company's Strategy
Implementing Six Sigma in ABC is aligned with the company's vision and strategy in
which it will help in the following:
Productivity: generate saving of 740,000 USD within three years journey.
The detailed financial benefits are illustrated in Appendix B.
People: build employees' capabilities in utilizing different tools and
techniques in their daily operations. By the end of the third year, ABC will
have one Master Black Belt, one Black Belt, 10 Green Belts and 15 Kaizen
Leaders.
Efficiency: streamline the company's operations by reducing the cycle time,
eliminate the non-added value actives and drive the processes to a best
performance.
Customers: sustaining the great customers' results and ensuring agile
response against any changes in the market.
Culture: creating a new mind- set where all employees can participate in lean
Six Sigma implementation because of its nature in adapting a bottom- up
approach.
Part 2: Projects Selection Criteria
The success of this journey depends on selecting the right projects that are linked to
the company's vision and strategy. Pyzdek and Keller (2010, pp. 118) suggested
using Business Process Maps and Flow Charts. In ABC Company, projects will be
selected as per Projects' Selection Framework in figure 4. The company will spot
ideas for Six Sigma and Kaizen projects using Value Stream Mapping and SIPOC
diagram (Suppliers, Inputs, Process, Outputs and Customers).
10
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Top management/ senior management spot the hot
areas that hinder them from achieving their plans
Champion reviews the areas and assign Master Black
Belt and/ or Black Belts for Value Stream Mapping and
SIPOC workshops which are conducted at planned
intervals during the year
Master Black Belt and/ or Black Belts conduct Value
Stream Mapping and SIPOC workshops for each of the
identified processes to pinpoint value/ non-added value
activities/ variation and send their recommended
initiatives to finance team
Finance team along with subject matter experts quantify
the financial impact for each of the suggested initiatives
and form "Projects Shortlisted" for the feasible ones
Champion review the "Projects Shortlisted" with top
management to prioritize them based on a "Decisions'
Selection Matrix" that will be developed for this purpose
Top management formulates the company's strategic
plan that supports the company's vision and mission for
the next five year. The Plan is updated annually
Champion will assign project sponsors and together will
assign the projects managers for each project
Project managers are responsible for selecting the right
team members
Senior managers develop the annual operating plan that
is aligned with the strategic five years plan
Project passed the
decisions criteria
No
Yes
Update
th
e a
nnu
al pla
n a
ccord
ingly
to r
eflect th
e n
ew
pro
jects
Start
End
Figure 4 ABC Company's Six Sigma Projects' Selection Framework
11
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Part 3: Performance Monitoring
The company will utilize Balanced Scorecard to track the performance of the Six
Sigma journey. The four aspects of this scorecard and the detailed matrices are
shown in table 2.
Table 2 ABC Company Six Sigma Performance Scorecard
Objective KPI/ Measure Target Actual Initiatives
Fin
ancia
l
Generating saving out of
the Six Sigma
deployment effort
Total expenses to total saving related to Six Sigma (Ratio)
TBD Lean Six Sigma
projects and initiatives
Total capital expenditure to total saving related for Six Sigma (Ratio)
TBD Lean Six Sigma
projects and initiatives
Total expenses related to Six Sigma training (USD)
225,000 Training program
Total expenses related to Six Sigma reward and recognition (USD)
125,000 Reward and
Recognition Program
Custo
mer
Sustaining the
competitive position of
ABC
Satisfying the company's
management
"time to sell" measure (Minutes) TBD Kizen Project
"go to market" measure (Minutes) TBD
Kizen Project
Green Belt Project
Management satisfaction about Six Sigma implementation
TBD
Questioner designed specifically for this purpose
Inte
rna
l P
rocesses
Implementing the lean Six
Sigma projects and initiatives on time and as per budget
Number of projects on time TBD Time Performance
Index calculations
Number of projects on budget TBD Cost Performance
Index calculations
Cycle time of process X (minutes) TBD Six Sigma green belt
project
Management engagement in the Six Sigma deployment
TBD Questioner designed
specifically for this purpose
Effectiveness of Six Sigma communication and employees engagement
Questioner designed
specifically for this purpose
Learn
ing
&
Gro
wth
Building ABC team's
capability in lean Six Sigma
Number of certified Kaizen Leaders 15 Training program
Number of certified Green Belts 10 Training program
Number of certified Black Belts 1 Training program
Number of training hours per employee (Hours/ Employee)
1 Training program
Part 4: Human Resources (HR)
Implementing this plan effectively depends on having the proper human resources.
The detailed HR plan is shown in tables 3 to 5 which cover:
The hiring guidelines;
Roles and responsibilities for each one involved in this journey; and
The proposed reward and recognition for the Six Sigma program
12
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Table 3 ABC Six Sigma Hiring Guidelines
Role Quantity Qualifications Needed
Master Black
Belt Manager
1 candidate in the
first year
At least 5 years of experience in the role of a
Black Belt*.
Soft skills: teaching, coaching, mentoring,
communication and innovation.
Advance project management skills.
Black Belt 1 candidate in the
third year
At least 3 years of work experience in one or
more areas of the Black Belt Six Sigma Body of
Knowledge*.
Soft skills: teaching, coaching, mentoring,
communication and innovation.
Advance project management skills.
Green Belt 5 candidates in
the second year
and 5 candidates
in the third year
Soft skills: leadership, problem solving and
communication.
Basics project management skills.
Kaizen Leader 5 candidates
each year
Basics project management skills.
Soft skills: leadership, problem solving and
communication
Projects Team
Members
As per the
projects
Soft skills: communication, time management and
cooperation.
Technical skills as per the assigned projects.
* Source: ASQ (American Society of Quality) available on the WWW at:
http://asq.org/. [Accessed in 1st December 2015].
13
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Table 4 ABC Company Six Sigma Roles and Responsibility*
Role Responsibility
General Manager Communicate the importance of Six Sigma journey in the annual
employees' meeting.
Illustrate the link between Six Sigma journey and the company's vision and
strategy.
Ensure the availability of resources (financial, human resources and
infrastructure).
Approve and authorize the Six Sigma deployment plan.
Approve the assignment of champion and sponsors.
Attend the required training as per the "Training Assignment Matrix".
Departments
Directors
Support the reward and recognition program.
Provide the need support in his/ her department.
Attend the required training as per the "Training Assignment Matrix".
Functional
Managers
Provide the needed resources for the Six Sigma projects.
Act as subject matter expert.
Ensure the implementation of the proposed solutions.
Attend the required training as per the "Training Assignment Matrix".
Champion Develop the Six Sigma deployment plan.
Liaison with finance manager and top management to ensure selecting the
right projects.
Participate in hiring the Master Black Belts and Black Belts, in addition to
selecting the internal Green Belts and Kaizen Leaders.
Monitor the performance of all Six Sigma players.
Communicate the Six Sigma journey internally and externally.
Support the reward and recognition program.
Attend the required training as per the "Training Assignment Matrix".
Sponsors Provide the needed support to his/ her project.
Review the progress of the project to ensure that that is no scope crepe
and the project will deliver its objectives on time.
Coach, mentor, and solve any problems raised by the project manager.
Authorize the project charter.
Attend the required training as per the "Training Assignment Matrix".
14
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Table 4 ABC Company Six Sigma Roles and Responsibility*
Role Responsibility
Master Black
Belts
Mobilize the reward and recognition program.
Coach, mentor, and support any issues raised by the Black Belts.
Certify the Black Belts, Green Belt and Kaizen Leaders.
Attend the required training as per the "Training Assignment Matrix".
Black Belts Implement the assigned Six Sigma Black Belt project.
Coach, mentor, and support any issues raised by the Green Belts.
Attend the required training as per the "Training Assignment Matrix".
Green Belts Implement the assigned Six Sigma Green Belt project.
Work with function heads to ensure the availability of the right team
members.
Attend the required training as per the "Training Assignment Matrix".
Project Team
Members
Participate actively in the assigned projects as per the required tasks (such
as: data collection, analysis, act as a subject matter expert..etc).
Attend the required training as per the "Training Assignment Matrix".
*Source: The Six Sigma Handbook (Pyzdek and Keller, 2010, pp. 19)
Table 5 ABC Company Six Sigma Reward and Recognition Program
Reward and Recognition Type
Audience Criteria
Free lunch inside the facility Team members Other employees who support
the project in his/ her department
As set by the project manager
Celebration in external venue
Kaizen Leaders/ Green Belts/ Black Belts/ Master Black
Belts
Meeting project goals by year end as evaluated by the champion
Monthly nomination for "Employee of the Month" with Free Shopping Coupon
All employees As set by the Master Black Belt and Champion
Professional Certificates Green Belts and Black Belts Implementing the assigned project as evaluated by the Champion and
the Master Black Belt
Part 5: Training
In order to ensure smooth implementation, different training courses and events
should be introduced covering all employees and the detailed training plan are shown
in table 6 and 7 respectively.
15
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Table 6 Six Sigma Training Plan in ABC Company
No. Course Name Description Delivery Method Duration Frequency
1 Six Sigma Awareness Event General awareness about Six Sigma and lean philosophy covering all employees. The training should introduce the concepts using fun activities and will be delivered in the local language (Arabic)
Event in internal venue
3 Hours Monthly to cover all employees in the first six
months
2 Master Black Belt Course Dedicated training for Master Black Belts candidates that cover the body of knowledge in that area, and advance soft skills
Class One month Once and whenever there is a change in that role
3 Black Belt Course Dedicated training for Black Belts candidates that cover the body of knowledge in that area, project management skills, and soft skills such as mentoring and coaching.
Class 20 days For each new wave
4 Green Belt Course Dedicated training for Green Belts candidates that cover the body of knowledge in that area and project management skills
Class 5 days For each new wave
5 Basics Statistics and Problem Solving Tools
Introduction to the basic statistics and problem solving tools. The training will be provided in the local language and cover all employees who need data analyse in their daily work. In addition, all Kaizen Leaders/ Green Belts/ Black Belts should attend if they don't have those basics.
Online 3 days Semi Annual
6 Advanced Statistics and Problem Solving Tools
Advanced statistics and problem solving tools dedicated for Black Belts and Green Belts if they don't have this knowledge. The training will be provided in English.
Online 3 days For each new wave
7 Management by- in Event An event to introduce the Six Sigma and lean philosophy to the management to ensure management by-in, support and continuous engagement.
Event in external venue
4 Hours Annually
8 Champion Training Dedicated training for the champion covering soft skills such as: mentorship, conflict management, and communication skills
Online or by external training
provider
2 days Once and whenever there is a change in that role
9 Sponsors Training Dedicated training for the sponsors covering project management skills, mentoring, and coaching
class delivered by the champion and/or external training provider
5 hours Once and whenever there is a change in that role
16
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Table 7 ABC Company Six Sigma Training Assignment Matrix
No. Course Name
Employees Groups
Top
Management
Master
Black
Belts
Black
Belts
Green
Belts Champion
Projects
Sponsors
Process
Owner
Projects
team
Members
All other
employees
1 Six Sigma Awareness Event √ √ √ √ √ √ √ √ √
2 Master Black Belt Course √
3 Black Belt Course √
4 Green Belt Course √
5 Statistics Basics and Problem Solving √ √ √ √
6 Advanced Statistics and Problem Solving √ √
7 Management by- in Event √ √ √
8 Champion Training √
9 Sponsors Training √
17
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Part 6: Communication
Different information will be aggregated from weekly and monthly meetings. This
includes:
Six Sigma Dashboard
Projects Status Reports
Balances Scorecard
Financial Tracking
Tone from the top about vision, strategy and Six Sigma.
Detailed communication methods, responsibilities and frequency are in table 8.
Table 8 ABC Company Six Sigma Communication Plan
Communication
type
Audience Form of communication Responsibility Frequency
Six Sigma
Dashboard
Project Team Billboard in a meeting room to
be discussed by each project
manager with his/ her team
during the weekly team
meeting
Project
Manager
Weekly
Projects Status Sponsor and
Master Black
Belt
A3 report to be discussed by
the project manager during the
weekly meeting with his/ her
sponsor and the Master Black
Belt
Project
Manager
Weekly
Balances
Scorecard
Top
Management
PowerPoint presentation to be
discussed in a meeting
Master Black
Belts
Monthly
Financial
Tracking
Top
Management
Excel Sheet Report to be sent
via e-mail
Financial
Manager
Monthly
Tone from the
top about visions,
strategy and Six
Sigma
All
employees
Speech and E-mails to be
circulated regularly to ensure
engagement
Top
Management
and
Champion
During the kick
off meeting
and Quarterly
e-mails
Part 7: Leadership Role
The engagement of the company's leadership in Six Sigma deployment is one of the
main critical success factors, whereby It is not a single event; it is a continuous
mission starts early in the initial phase and continues throughout the journey.
18
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As outlined in the previous parts, the engagement is fulfilled in two directions. On the
first hand, managers shall play specific roles and responsibilities as defined in the HR
plan including but not limited to: setting tone from the top about the benefits of Six
Sigma, providing the needed resources whether the financial, human resources or
even the infrastructure, providing official nomination for the Six Sigma champion and
projects' sponsors, supporting the reward and recognition programs, attending
specific training as per the "training assignment matrix" and participating in the
"projects selection framework".
On the other hands, by linking the Six Sigma deployment with the company's vision
and strategy, managers can rest assure that this effort will advance the company's'
performance. Accordingly, managers shall receive regular updates about Six Sigma
progress through the balanced scorecard in table 2 and the detailed roadmap over
three- year’s journey.
Part 8: Cultural Change
Employees' resistance to change is avital obstacle in Six Sigma deployment. The
proposed deployment plan shall overcome this by addressing three points. Firstly,
implementing specific actions such as cultural-change training, a reward and
recognition program dedicated to reward the Six Sigma performance, providing clear
communication for the expectations in terms of their roles and responsibilities, and
empowering employees to be part of the Six Sigma projects and its career path.
Secondly, the proposed plan will be implemented over three years so everyone can
be engaged at the right pace. Finally, the projects are always linked to the company's
strategy to ensure that there is no contradiction with the other projects and initiatives
in the company.
Part 9: Implementation Roadmap
The timeline for the major events is shown in figure 5 and the detailed timeline is in
table 9.
19
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Figure 5 ABC Company's Six Sigma Plan
20
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Table 9 ABC Six Sigma Implementation Timeline
Year Q1 Q2 Q3 Q4
2016
Communicate the
following:
Projects selection
framework
Training agenda
Roles and
responsibilities
Conduct first VSM
sessions
Conduct management
training topics
Kaizen Leader Training
Communicate the reward and
recognition program
Awareness and cultural- change
training
Kaizen Leaders
Implementation
VSM Workshop
Award kaizen Leaders
Certificates
2017
Hire Black Belt
Green Belt Training
VSM Workshop
Kaizen Leader Training
Green belt Implementation
Kaizen Leaders Implementation
Refresh training
VSM Workshop Award Green Belts and
Kizen Leaner Certificates
2018
VSM Workshop
Green Belt Training
Kaizen Leader Training
Green Belt Implementation
Kaizen Leaders Implementation
Black Belt implementation
Refresh training
VSM Workshop Award Black Belts, Green
Belts and Kizen Leaner
Certificates
21
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
References
American Society for Quality. Available at the WWW on http://asq.org/index.aspx [Accessed in
1st December 2015].
Pyzdek, T. and Keller, P. (2010). The Six Sigma Handbook. 3rd ed. New York: McGraw-Hill
Companies.
22
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Appendix A- ABC Company's Six Sigma Readiness Assessment
Source: International Institute for Learning, Inc. available at the WWW on:
https://www.iil.com/leansixsigma/getlean/Six_Sigma_Readiness_Assessment_Tool.xls.
[Accessed in 1st December 2015].
23
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Appendix B- ABC Company's Six Sigma Cost- Benefits Analysis
This appendix shows the costs and benefits associated with the Six Sigma journey
First: Expected Benefits
The company will launch 5 Kaizen projects in the first year. Each one is expected to
save 25,000 USD. In the second year, the company will start Green Belt projects,
each one is expected to generate saving of 50,000 USD alongside the other five
Kaizen projects. In the third year, the company will implement two Black Belts
project, each is expected to save 100,000 USD, in addition to implementing another
five Kaizen projects and five Green Belt Projects. The total saving by the end of the
third year is as the following:
Table 0.1 ABC Six Sigma Deployment Financial Benefits
Year Kaizen Projects (25,000 USD
Saving)
Green Belt Projects
(50,000 USD Saving)
Black Belt Projects (100,000 USD
Saving)
Expected Saving (USD)
1 5 0 0 125,000
2 5 5 0 375,000
3 5 5 2 575,000
Total benefits by end of third year 1,075,000
Second: Expected Costs
The costs needed for the Six Sigma journey are shown in the below table:
Table 0.2 ABC Six Sigma Deployment Financial Costs
Item Required from Yearly Costs (USD) Total Cost (USD)
Consulting and training costs
First year to third year 50,000 USD in the first year 75,000 USD in the second
year 100,000 USD in in third
year
225,000
Hiring Master Black Belt in the first year
First year to third year 60,000 180,000
Hiring Black Belt in the third year
Third year 35,000 35,000
Reward and recognition program
First year to third year 20,000 USD in the first year 40,000 USD in the second
year 60,000 USD in in third year
120,000
Total costs by end of third year (USD) 335,000
Total expected revenue by end of the third year is 740,000 USD