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K E K I R. B H O T E

A S S O C I A T E S. K E K I R. B H O T E. Specialists in Quality & Productivity Improvement. The March to the Ultimate Six Sigma – From Quality Excellence to Total Business Excellence Quality/Lean Six Sigma Conference Izimir, Turkey May 9, 2008 Keki R. Bhote

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K E K I R. B H O T E

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  1. A S S O C I A T E S K E K I R. B H O T E Specialists in Quality & Productivity Improvement The March to the Ultimate Six Sigma – From Quality Excellence to Total Business Excellence Quality/Lean Six Sigma Conference Izimir, Turkey May 9, 2008 Keki R. Bhote President, Keki R. Bhote Associates

  2. 100% 90% 80% 70% 60% 50% 40% 35% 30% 25% 20% 15% 10% 6 Leadership A Sigma Continental Divide 6 Employees Overall Effectiveness 6 Organization 6 Customers 6 Services 6 Design 6 Suppliers 6 Lean 6 Quality Time The March to the Ultimate Six Sigma Progressive Effectiveness of 6 Methodologies

  3. Six Sigma History • MOTOROLA • 10:1, 100:1, 1000:1 - Quality Improvement • Cost of Poor Quality (COPQ): $9 Billion Savings in 10 Years • CYCLE TIME REDUCTION • Manufacturing: 100:1 Reduction • Business Processes: 10:1 Reduction • Design: 4:1 Reduction

  4. 1. QUALITY • POWERFUL 21ST CENTURY TOOLS • Design of Experiments - Shanin / Bhote Not Classical or Taguchi • Multiple Environment Over Stress Tests (M.E.O.S.T.) • - Up to 100:1 Reliability Improvement • Voice of the Customer - Mass Customization/Realistic • Specifications/Tolerances • Total Productive Maintenance: OEE > 85% • Poka Yoke - To Prevent Operator-Controllable Errors

  5. 2. COST REDUCTION • POWERFUL 21ST CENTURY TOOLS • Value Engineering • SBU, Product, Model & Part Number Reduction • Group Technology • Early Supplier Involvement • Cost Targeting • Specifications Scrub • Financial Incentives/Penalties

  6. 3A. CYCLE TIME REDUCTION: LEAN SIGMA • MANUFACTURING • Focused Factory • Product vs. Process Flow • Set-Up Time Reduction • Preventive vs. Breakdown Maintenance • First Time Yield Breakthrough

  7. 3B. CYCLE TIME REDUCTION: LEAN SIGMA • DESIGN • Outsourcing • Black Box vs. Piece Part Procurement • Early Supplier Involvement • Parallel Development • Time to Market Reduction (M.E.O.S.T.)

  8. 4. CUSTOMERS • Customer Loyalty, Retention, Longevity • Referrals – A Key Parameter • Customer Differentiation • Customer “WOW” – Delight Features; Bhote’s Law • Infrastructure • Steering Committee • Chief Customer Officer (C.C.O.) – A Czar • SWAT Teams

  9. 5. LEADERSHIP • IMPERATIVES • Release the Genie of Creativity in Every Employee, Currently locked • up in a Bottle of Bureaucracy and Fear • Raise each Employee to the Maximum of his Potential • KEY CHARACTERISTICS • Ethics, Trust, Active Help • Motivation through Inspiration – Not Fear • Granting Freedom and Guidance – Not Micro Management • Leader as Coach, Teacher – Not Boss

  10. 6. ORGANIZATION • Dismantle Taylorism • From Vertical (Departmental) Organization to a Team Organization • From a Tall Pyramid to a Flat One • Train, Train, Train • Egalitarian Gain Sharing • Lowering Ratio of CEO: Lowest Worker Compensation • (Currently over 500:1)

  11. 7. EMPLOYEES • EMPOWERMENT • Worker Teams Take Over Peripheral Areas • Teams Handle Peer Evaluation, Compensation; Hiring/Firing Team Members • Workers Select Leaders; Determine Promotions; Sharing Profits and Losses

  12. 8. SUPPLIERS / DISTRIBUTORS • From a Win-Lose Contest to a Win-Win Partnership with Key Suppliers • Supplier Prices a Ceiling; Supplier Profits a Floor • Infrastructure; Steering Committee; Commodity Teams • Early Supplier Involvement • Financial Incentives / Penalties • Supplier Development: Active, Concrete Help in Quality, Cost, and • Cycle Time improvement

  13. 9. DESIGN

  14. 10. MANUFACTURING • PRE-PRODUCTION DISCIPLINES • Design for Robustness (s/n) • Minimum Variability: Cpk > 2.0 • Product Characterization • Product / Process Optimization • Total Value Engineering • QUALITY DISCIPLINES • Positrol • Process Certification • Mini-MEOST • O.E.E. • Pre-Control • Poka-Yoke • Instrument Accuracy • Failure Analysis

  15. 11. BUSINESS PROCESSES / SERVICES (Cycle Time: The Integrator, The Metric) • Management Steering Committee • Improvement Teams • Next Operation As Customer (NOAC): Principles & Practice • 10 Step Roadmap (Preliminary) • Out-of-Box Thinking: (TRIZ, Total Value Engineering) • Radical Process Redesign

  16. 11. BUSINESS PROCESSES / SERVICES (Cycle Time: The Integrator, The Metric) The NOAC Roadmap – The Improvement Cycle Step 1. Major Project Selection Step 2. Identify Major Internal Customers Step 3. Identify Their Requirements (Compatibility with External Customers) Step 4. Customer/Supplier Agreement on Goals, Measurements, Feedback and Consequences Step 5. Flow Chart the Macro Process (“Is” Chart) Step 6. Determine Cycle Time for Each Step & Total Cycle Time Step 7. Identify the Non-Value Added Steps and Time Step 8. Estimate Cycle Time Reduction by Eliminating Non-Value Step 9. Eliminate/Reduce Non-Value Added Steps and Redraw the Flow Chart (“Should” Chart) Step 10. Innovate Radical Approaches Using Out-of-Box Thinking to Drastically Reduce Cost and Cycle Time

  17. 12. RESULTS

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