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Even slow progress is better than none at all
Daniel S. Carroll version 1.0
April 13, 2012
99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
+ 2σ
+ 1σ
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- 1σ
Average
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Is a data driven quality improvement methodology structured to reduce product or
service failures rates to near perfection. ∑
= 99.73% = Six Sigmas outlining normal distribution = for 1M opportunities, there are 3.4
mistakes
In statistics, a bell-shaped curve represents the
distribution of values, frequencies, or probabilities of
a set of data. The middle is the “norm”
(normal distribution / “norm” = a good thing!)
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
+ 2σ
+ 1σ
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Average
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Methodology for improvement
Management philosophy
Strategy for running a business
Creates a common language throughout an organization (small, medium or large)
Method to transform culture (paradigm shift)
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
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Average
Like most “quality management” programs, it started in manufacturing / industrial
Has been adopted in practically all verticals
Major modern day focuses: Financial Services, Healthcare, Information Technology
Baseline: mistakes are costly
Effectiveness – the degree to which you meet and/or exceed customer needs or
requirements
Efficiency – the amount of resources consumed in being effective
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
+ 2σ
+ 1σ
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Average
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What it is What it is NOT
Scientific in nature
Hypotenuse applied to business (think HS
science class)
Discovery, asking questions, challenging the
methods (investigative practice)
Team participation
Listening to the customer (VOC – voice of
the customer)
Leaving no stone unturned, enterprise wide
High level, top-down approach
Anecdotal
Deviation in delivery (e.g. service delivery)
Bandaid fix approach / “one size fits all”
Independent assumptions
Lack of understanding of culture, evolution
A sliver bullet solution
Subjected to just one entity of an
organization
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
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Average
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What it is What it is NOT
De facto standard
Just because you’re not sick doesn’t mean
you can’t get better
Use of tools
Knowledge workers
Method acting
A Team*
Quick, Complete Project Adoption
Status quo
If it ain’t broke don’t fix it
Lacking a valuable apparatus
For everyone
Single act show
Solely an individual process
*Six Sigma defines a team as “A group of motivated people with complementary skills and knowledge who are
committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually
accountable.”
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
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Average
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SS defines “customer” as…
A customer is a recipient of a product or services – internal or external
SS’ six recommendations to identify VOC…
1. Interviews* (formal, direct, small)
2. Focus Groups (informal, direct, medium)
3. Market Research (informal, indirect, large)
4. Surveys (formal, direct, large)
5. Customer Observations* (formal, direct, small)
6. Complaints* (formal, direct, small)
* Ideal opportunities to seek “pain points”
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
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Using VOC tact, we become more valuable in the marketplace
Professional, Consultative
Knowledge Experts, Thought Leaders
Less commoditized!
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99.73%
99.73%
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68.26%
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Using VOC tact, we analyze client situations
Customer Needs vs. Requirements
Needs establish the relationship between the organization and the customer
Requirements are the characteristics that determine whether or not the customer is
happy
Q. what makes a client unhappy?
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
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Average
A. Variation – deviation in service delivery, or a large step away from the “norm” (average)
Caused by factors that can be in your control (Machines, Materials, Methods, Measurement,
People) or the one not in control (Mother Nature)
Variation
Problem identification
Norming
Get control
Average
Improve using VOC
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
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Average
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Define
Measure
Analyze
Improve
Control
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99.73%
99.73%
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68.26%
68.26%
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Define phase
Identifying there’s a problem
Develop a “problem statement”
Identifying the solution (the target)
Work with the knowledge experts
+ 3σ
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
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Average
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Problem statement (pain point): reduce the amount of indexing performed by a 3rd party in
their mail scanning workflow
Take a large problem and make it more granular
1. Process Map
2. Use VOC
Case Study 1
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
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Analyze phase
potential area of process improvement
Case Study 1
99.73%
99.73%
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68.26%
68.26%
+ 3σ
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
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Average
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Microproblem statement (pain point): how do we control file tracking on-and-off site
Take a large problem and make it more granular
1. Began with VOC
2. Enabled controls to ensure accountability and upkeep of related information
Case Study 2
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
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Combined Improve and Control
SOPs
Continuity
Consistency
Case Study 2
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99.73%
99.73%
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68.26%
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Problem statement (hypotenuse): what is the most important factor that yields a new sale?
Key considerations
1. Use VOC
2. Identify their pain points of dealing with similar providers
3. Gather feedback from decision makers on their needs and requirements
Case Study 3
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99.73%
99.73%
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EXAMPLE ONLY
Created 3 top-level categories to classify the type of question asked by a prospect: (1)
about the company, (2) about our products, (3) about our services
Timeframe Fall 2011 – Spring 2012
Prospects 5
Total Questions collected 47
Categories 3
Questions about the Company 28 (60%)
Questions about its Product 5 (11%)
Questions about its Service 14 (30%) Surprisingly, decision makers seemed
to be more concerned with their
potential business partner as a whole,
verse impressing them with superior
product and/or service
Case Study 3
Areas:
Zero variation: tighter control with standard, universal procedures
Team participation
Listening to the customer (VOC – voice of the customer)
Leaving no stone unturned, enterprise wide
Quick, Complete Project Adoption
High level, top-down approach
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
+ 2σ
+ 1σ
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- 1σ
Average
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Controls aren’t just tools used to govern and regulate
Develop consistencies behind routine, “course setting” actions
Standard procedures offer ways to control, benchmark, and study outcomes
You can’t improve upon something that varies each and every time it’s preformed
The analysis of result-driven outcomes cannot be compared against varied
performances
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
+ 2σ
+ 1σ
- 3σ
- 2σ
- 1σ
Average
Areas:
Zero variation: tighter control with standard, universal procedures
Team participation
Listening to the customer (VOC – voice of the customer)
Leaving no stone unturned, enterprise wide
Quick, Complete Project Adoption
High level, top-down approach
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
+ 2σ
+ 1σ
- 3σ
- 2σ
- 1σ
Average
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Now, more than ever, organizations must be dynamic to face tomorrow’s challenges
Expertise isn’t the only thing that should lend itself sideways, backwards and forwards
With raised expectations of select knowledge workers, there should be more contributions of
other individuals as well
Eliminate “silos” while broadening partial and central ownership
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
+ 2σ
+ 1σ
- 3σ
- 2σ
- 1σ
Average
Areas:
Zero variation: tighter control with standard, universal procedures
Team participation
Listening to the customer (VOC – voice of the customer)
Leaving no stone unturned, enterprise wide
Quick, Complete Project Adoption
High level, top-down approach
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
+ 2σ
+ 1σ
- 3σ
- 2σ
- 1σ
Average
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Organizations rely on business intelligence from all facets within
Cross-account analytics for benchmarking (prospecting)
Multilevel TQM Reporting analysis (current clients)
Marketing Analytics (external)
We have data to become industry thought leaders and shape customer wants
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
+ 2σ
+ 1σ
- 3σ
- 2σ
- 1σ
Average
Areas:
Zero variation: tighter control with standard, universal procedures
Team participation
Listening to the customer (VOC – voice of the customer)
Leaving no stone unturned, enterprise wide
Quick, Complete Project Adoption
High level, top-down approach
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
+ 2σ
+ 1σ
- 3σ
- 2σ
- 1σ
Average
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A Lean Six Sigma organization has everyone’s participation
Everyone identifies an opportunity to leverage Lean or Continuous Improvement
Craft a problem statement (a “pet project”)
Identify key team resources, execute
Create a heightened sense of cause effect execute realize improve
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
+ 2σ
+ 1σ
- 3σ
- 2σ
- 1σ
Average
Areas:
Zero variation: tighter control with standard, universal procedures
Team participation
Listening to the customer (VOC – voice of the customer)
Leaving no stone unturned, enterprise wide
Quick, Complete Project Adoption
High level, top-down approach
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
+ 2σ
+ 1σ
- 3σ
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- 1σ
Average
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A Lean organization is one that is agile, reliant on firm leadership and decision making
Build solid business cases using business intelligence
Carve out time to listen, understand and react
Do not let initiatives fall by the wayside
Project/program adoption and group participation should never take longer than
development which usual involves high level information gather, preparation, etc.
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
+ 2σ
+ 1σ
- 3σ
- 2σ
- 1σ
Average
Areas:
Zero variation: tighter control with standard, universal procedures
Team participation
Listening to the customer (VOC – voice of the customer)
Leaving no stone unturned, enterprise wide
Quick, Complete Project Adoption
High level, top-down approach
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99.73%
99.73%
95.46%
95.46%
68.26%
68.26%
+ 3σ
+ 2σ
+ 1σ
- 3σ
- 2σ
- 1σ
Average
30
Pres./
CEO
VPs EVPs
Divisions Departments Internal
Customers
External
Departments
sacred cows
traditional thinking
unchanged mindset
satisfactory silo adoption
short-term gains
Committees