Leading the way in six sigma

Webinar - Leading the Way in Six Sigma
With - Craig M. Hoel
Six Sigma Master Black Belt
APRIL 19th, 2018
11:00 AM ET | 04:00 PM UTC
www.invensislearning.com

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About Invensis Learning
Invensis Learning is a leading certification training provider for individuals and enterprises globally. Our
expertise in providing globally-recognized IT & Technical certification courses has enabled us to be one of
the trusted certification training partners for many Fortune 500 organizations and Government institutions
worldwide. Invensis Learning has trained and certified thousands of professionals across a wide-range of
categories such as IT Service Management, Project Management, Quality Management, IT Security and
Governance, Cloud Computing, DevOps, Agile Project Management, and Digital Courses. Invensis
Learning’s certification training programs adhere to global standards such as PMI, TUV SUD, AXELOS,
ISACA, DevOps Institute, EXIN, and PEOPLECERT.

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Housekeeping
 The webinar will last up to 60 minutes
 You can ask questions throughout the Webinar, using the Chat panel on the right hand side of the
screen. These will be answered during the Q&A session towards the end.
 Post webinar, a recorded copy will be sent to your email

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Speaker Profile
Craig M. Hoel
Six Sigma Master Black Belt
Craig M. Hoel is a Six Sigma Master Black Belt expert with 30+
years of experience. He was a Boeing Certified Six Sigma Black
Belt instructor and training material lead and has retired since
2014. He has worked on many patented and industry best
practices in the form of Geometry Assurance and FA-18 Landing
Gear and Aircraft Program respectively for the US Navy. With over
30+ years of experience, Craig M. Hoel has a vast knowledge of
Six Sigma implementation and how to lead critical Six Sigma
projects and develop training programs for leaders,
project/product managers, and team members.

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Objectives
 Leadership in the use of Six Sigma processes that are coordinated with Lean to improve the
performance of your organizations
 Describing “YOUR” Six Sigma commitment – What it is, What deliverable value to expect from it
 Understand the process in selecting, chartering, and planning either Lean or Six Sigma projects, so
that the most significant and challenging problems are worked first
 Committing the necessary guiding Six Sigma resources for process and product improvement, so that
they will support your improvement projects to deliver the expected value

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Why Six Sigma?
The cause and effect of problems in “Complex Systems” are not closely related in time and space.
Attempting to resolve these problems without use of a “Systems” approach is ineffective.
The Fifth Discipline by Peter Senge

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Core Competencies
 Detailed Expectation, Knowledge and Problem Focus
 Defined Scale, Business Impact and Value Deliverable
 Lean Competency with Six Sigma Integration
F O C U S

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The Tools All Work Together
Production
Preparation
Process (3P)
Value Stream
Improvement
Process
Distribution
Kaizen
Workshop
Total Productive
Maintenance
Six Sigma
Accelerated
Improvement
Workshop
Lean
Manufacturing
Assessment
Critical
Project Mgmt.
Theory of
Constraints
Process
Based
Mgmt.
Autonomous
Maintenance
Workshop

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Decisions Must Be Based on Data to Impact Root Cause
 Ready!
 Fire!
 Aim!
Taking action without fully
understanding the problem
will typically cause further
problems

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Financial Analysis
 The Financial Analysis element in each project assures that improvements can be expressed in
terms of an actual cost savings/avoidance or revenue opportunity for the Company
 The financial analysis is an integral part of each Six Sigma project, because that is where meaningful
VALUE is determined

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Is Six Sigma Only Relevant to Manufacturing?
NO! It is used to significantly improve processes throughout the Business, including office, management,
finance, factory, transportation, supplier coordination, etc.

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So what is Six Sigma?
 Six Sigma is a targeted, business driven, customer based, fact and data approach to process
improvement, reducing costs, increasing profits and customer satisfaction
 Six Sigma is a structured methodology and set of tools for improving processes and increasing
capacity
• Through problem solving, root cause analysis, variation reduction, developing new processes or improving
existing processes
 Six Sigma is part of Lean
Six Sigma is a process improvement methodology used to
identify critical issues, find their root causes and identify preventative solutions

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Basic Sigma Concept
 A measure of variation
 Sigma refers to the standard deviation
Standard
Deviation
of a
Process
Frequency
Measurement

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Statistical Analysis
The Sigma value is a measure of quality, it measures process capability
Too much
Hard to produce output within customer
(specifications)
Low sigma values
(< 2)
Moderate
Most output meets
customer requirements
Middle sigma values
(3–5)
Very little
Virtually all output meets
customer requirements
High sigma values
(6)

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Process Variation and the Goalpost Model
The goalpost model says that just meeting specs or requirement is sufficient
lower
spec
upper
spec
Target
Nominal / target value
All product equally good All product
equally bad
All product
equally bad

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Six Sigma Phased Approach - DMAIC
Define : Identify the customers, their priorities and the underlying problem
Measure : Determine how the process is performing and how is it measured
Analyze : Identify the most important causes of the defects
Improve : Remove the causes of the defects
Control :Develop a strategy to maintain the improvements
Six Sigma makes use of facts and data to identify root causes of defects and
variation, permanently resolving chronic problems

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Roles and Responsibilities
Leadership Team:
Focused on the Business and the Customer
 Establish strategic direction
 Establish priorities for the Business Unit
 Ensure organizational support
Review progress on key metrics to identify improvement opportunities
 Recognize and communicate efforts
 Share and replicate improvements

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The Leader:
Focuses on the Six Sigma Program and People by:
 Identify business goals that should be addressed via Six Sigma
 Communicate Six Sigma methods
 Participate on Leadership Teams
 Assist, initiate and participate in Project selection
 Participate in Project Reviews to set deliverable expectations
 Support projects and team recommendations
 Recognize people and teams for their efforts
EVERY practitioner or supporter is a Leader!

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Project Sponsor(s):
Focused on the Project Deliverable and its Success
 Determine processes to improve/ Problems to resolve
 Identify key process stakeholders and users
 Link project teams to Business Goals and Objectives
 Collaborate with project team leader, stakeholders, and Six Sigma Coordinator to define value
deliverable and scope projects
 Identify needed resources and remove barriers to change
 Review progress in a timely manner implementing all incremental process changes
 Celebrate successes!

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Who should be the project sponsor or leader?
The person with the authority to approve and implement the team’s incremental changes and final
deliverable value and solution
The person that owns the process source of the problem.
Collaboration all of the various integrated or interacting processes may be necessary to change
companion processes that are the source of affecting processes.

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Leader/Sponsor Responsibilities: Business Perspective
 Deployment of Six Sigma methods must be tied either to business value driven goals and objectives
or to opportunities and risks identified
 Understand that time and resources must be allocated to work process improvement projects
• Six Sigma practitioners must be provided as a resources to work projects
• Selected projects are an investment: initial cost, time and resources are the leverage for a future payback

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Leader/Sponsor Responsibilities: Business Perspective
 Select proven performers to become Black Belts as part of becoming effective business leaders
 Set the expectation that employees are to improve processes, reduce variation, waste and defects.
 Lead by example

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Why is a Focused Improvement Strategy Needed?
When Market Forces and
Competition Drive Income
Down
Revenue
Loss
Revenue
Do Nothing
Option One
Do Nothing
Waste
25% to
50%
Profit
Waste
25%
to
50%
Total
Cost
Cost of
doing
right
things
Right
Current State
Profit
Waste
Focused
Improvement
Strategy
Option Two
Eliminate Waste
Potential
State
Waste
25% to
50%
Waste
25%
to
50%
Cost of
doing
right
things
Right
Cost of
doing
right
things
Right
Waste is the result of variation, rework, defects, and nonvalue added effort.

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Taguchi Loss Function
 The Taguchi Loss Function relates “cost (losses)” to “variation”.
 Fundamental concepts:
• Any loss in quality is defined as a deviation from a target, not a failure to conform to specification.
• High quality can only be achieved economically by being designed in from the start, not by inspection and
screening.
 More variation will add more cost to the user (customer): Examples
• Modifying product for acceptance
• Misunderstandings, bad or incomplete data
• Researching for data that could have been provided
• Ambiguity
• Misalignment
$Cost“L”
(LossinQualityperunit)
TargetLower
Spec
Upper
Spec

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Project Selection
“We once conducted an informal poll of colleagues who have been involved in Six Sigma and other
process improvement initiatives, and found an unanticipated consensus: Each person identified project
selection as the most critical, and most commonly mishandled, activity in launching Six Sigma.”
Peter S. Pande, Robert P. Neuman, Roland R. Cavanagh
Authors of The Six Sigma Way

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Project Selection
The goal is to identify and work the best projects that support specific business and organizational goals
 Who cares about this project enough to drive it to completion, and why do they care? (Business Goals
& Objectives, Role Authority Accountability, etc.)
 Potential to identify Return on Investment (ROI) thresholds
 Business level projects focus on strategic goals and objectives
 Operations level projects focus on important technical and operational problems that have a link to our
strategic goals and objectives

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The Significance of Project Selection
Properly Selected Improperly Selected
Completion Time Fast (1-4 months) Lag, stall, or die
Results Realized and verified Little ROI, late
Morale High Low
Motivation High Low
Future Impact Look for next one Unwilling to volunteer

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Select Projects
Three ingredients of a Six Sigma project are:
 There is a gap between current and needed performance
• Ask: Is there a problem or opportunity?
 The cause of the problem clearly understood
• Ask: Is the cause known?
 The solution is unknown or not apparent
• Ask: Is the solution pre-determined or obvious?
If your answers are Yes, No, No, you have a qualified Six Sigma project. Now, is it a project you want to
invest your resources in?

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Prioritize Projects
 Bottom-Line Impact
 Organizational Strategy
 Customer Focus
 Critical Process
 Push Leverage
 Complexity
 Resources
 Intangible Impact
Use criteria with a basis in data or facts, such as:
What causes you the most stress?
What is your largest source of rework?

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Authorize the Project
 Assign Black Belt or Green Belt as team leader or project executer
 Clearly provide and bound RAA (Who is going to make it happen)
• Hold sponsor and Six Sigma practitioner accountable for project progress and success
 Resource the team – people and funding

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Project Strength Matrix (example)
Project Name:
Rank the potential impacts of the project across the 8 criteria:
9=High (direct, strong, significant)
3=Moderate (indirect)
1=Weak (minimal)
High
(9 Points)
Moderate
(3 Points)
Low
(1 Points) Rank
1
Is there a Defined "VALUE" as a deliverable aligned with the
Goals
Greater than $500K.
100 to 200K. Less than 100K
2
Is there a definable relationship to the Business or Department
Goals?
Directly related.
Indirectly related.
Slight relationship.
3 Is there a deliverable VALUE Benefit to ALL of the external VALUE would meet or exceed Some external customer Value and
There is some minimal Value or
benefit.
4
Is there existing DATA that define the process and can
applied?
Higher level tools: statistical methods
applicable
Descriptive Data: mean, median, standard
Very basic tools: data charts
Flowcharts
5 Can other Business Units, groups, and/or processes benefit?
Potentially applicable to multiple
services
Potentially applicable to more than a single
opportunity.
Single opportunity.
6
The project be completed in a time frame that supports the
Goals and is in reasonable for existing resources
Implement is direct; - few, if any,
6 months max.
Implementation will be difficult - 6-12
maximum.
Implementation will be extremely
greater than 12 months.
7
What is the investment level (people, capital, opportunity and
required?
Budget and People are available in/or
timeframe.
Some Budget and Resources with some
Budget and Resources are currently
unavailable
8
How much will the potential Process, Product improvement and
impact.
Direct and/or significant impact Moderate impact (30% - 69%)
Little to no impact (9% - 30%)
Score Ideal (>72%) Strong (71% – 42%) Moderate 41% – 24% Weak (23% - 8%)

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Opportunity
BG&O’s – Are they being met? Can they be improved
upon?
- Gaps between Value Stream current and future states
- Chronic issues such as rework, late parts
BG&O’s - If you have process data, where is it
directing you?
- If you don’t have process data, Six Sigma can identify
what data should be obtained.

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Business Alignment Planning
– Identifying Potential Projects
Remember to ONLY identify the potential projects, NEVER suggest any solution!
Process owners and Teams should be the ones responsible to develop the possible solutions, actions to
be taken or the tactics to be used for each of the defined actions….

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Six Sigma Project Selection Summary
 Leadership teams choose the project areas or even the projects themselves
 Sponsors base project selection on solid criteria
 Launch a reasonable number of projects
 Scope projects
 STAY ENGAGED!
• Review progress

Let the Project Begin!
Project Charter

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The Project Charter
 The Leadership Team identifies the need and rationale for the project
 The Green or Black Belt refines the project and develops the charter
 The /Sponsor reviews and suggests changes, and reaches mutual agreement with the project team
 The charter transfers the project from s or sponsors to project team
 It is updated as the project develops, and is the key milestone that starts the project

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What Does the Charter Tell the Team?
 What process or problem to study
 Why it is important to customers and to the organization
 Project and organizational boundaries
 Improvements and the deliverable value expectation
 When to begin the project, and timeline target completion date

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Key Definitions for Charters
Business Y (Need)
Define metric driven by project results – something on which the
leadership is measured or is measuring.
Defect(s)
The defect should define an unacceptable level or variance in the
Business Y. It should be measurable (hopefully easily). It should drive
one of the sponsor’s metrics.
Goal/Objective
Contains QUANTIFIED target for improvement of the Y. Make sure it
does NOT contain a preconceived improvement.

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Project Reviews
 Forces people to do “big picture” thinking
 Gives time to delve into details at points selected by reviewers (requires team to have backup details
for all major points)
 Allows reviewers to hear full logic of team’s work
 Allows both team and reviewers to check for understanding before team departs to continue work, and
agreement on what direction the team will proceed
 Provides opportunity to address barriers, problems, and systems’ issues impeding improvement
efforts

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Who Should We Involve in Reviews?
 Sponsor(s)
 Team leader
 Team members
 Green Belt Navigator
 Coach (Black Belt Navigator)
 Key Process stakeholders

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Typical Report Out Format
 Each project report is to be 15 minutes long with 5 minutes of questions after the presentation
 Questions from the audience are held until after the presentation
 Each report phase has a template of required information
• Define/Measure
• Analyze
• Improve/Control
 Sponsors are expected to attend the report outs

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Closing Out Projects
 Recognition is important for everyone
 Recognition should reinforce intrinsic sources of satisfaction and motivation
• A small souvenir related to the project work
• Company Award
• Special Lunch or dinner

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Summary
 You now have a clearer understanding of what Six Sigma is
 You have seen that applying Six Sigma practices in your process improvement efforts will generate
quantifiable improvements
 You have been exposed to the roles and responsibilities of the Leaders, Sponsors, and Leadership
Teams
 You have learned how to select and charter projects, and what to expect from them

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Exclusive Offer for Webinar Attendees
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and Black Belt) training. Click on the ‘Offer link’ in your chat window and
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For On-site Group Training requests, email us at
corporate@invensislearning.com

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Questions
 Now the Session is open for Question and Answers
 Please drop your questions in the Q & A panel
 Incase you would like to ask any questions directly with the speakers kindly
use the “RAISE HAND” option.

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Thank you for joining us...
Thank
you!

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