Deployment Approach From Initialization to Self Sufficiency

1. Deployment Approach From Initialization to Self Sufficiency

2. Agenda Overview • Six Sigma Described • Quantification and Categorization of Deployment Results • Fundamentals of Initialization and Infrastructure Development • Process Management and Six Sigma • The Path to Self Sufficiency

3. Six Sigma Described • It is the philosophy of breakthrough level improvements, that every process can and should be repeatedly evaluated and significantly improved • In terms of time required, resources used, quality performance, costs and other aspects relevant to the process. • All leading to increased customer satisfaction, market share, revenue, profits, and ultimately shareholder value.

4. Six Sigma Described • It is an enterprise wide strategy that effectively develops a capability and a desire within individuals to: • To effectively manage process activities and performance • To solve business and quality problems • To improve decision-making • To improve the overall performance of the enterprise

5. System – A group of interactive and dependent activities which operate synchronously and in control to repeatedly achieve an expected result with little or no Management intervention required Six Sigma System – An enterprise wide strategy that recognizes problematic areas of the business, defines improvement efforts and projects, determines and implements data driven breakthrough level solutions…..in a predictable and repeatable manner to improve business results Six Sigma Described ManagementSystem Methodology Tools Metrics and Goals + + + Six Sigma is the way you run your business. It is not just about quality, it is a business & process management system, and one of the many outputs is improved quality.

6. Categorization of Results Below Average Above Average TOTAL QUANTITY OF IMPLEMENTATIONS Excellent Inferior RESULTS FROM SIX SIGMA IMPLEMENTATIONS How Six Sigma is Implemented and Applied Will Determine the Results

7. Quantification of Results Multiple Factors Determine the Results Obtained …….. Y=f(X)

8. Initialization Process Management Factors that Influence Results Y(results) = f(X) X1= Senior Executive engagement and commitment X2= Up front planning X3= Infrastructure Development X4 = Proactive Champions that see the power of Six Sigma X5 = Full-time Black Belts from “Among the Best” X6= Process Management through Green and Yellow Belts X7 = Black Belts Project selection that makes an impact on the bottom line of the business X8= Financial evaluation system X9= Metrics and goals linked to corporate strategy for progress tracking X10= Project tracking system to measure progress

9. Six Sigma System – An enterprise wide effort that recognizes problematic areas of the business, defines improvement efforts and projects, determines and implements data driven breakthrough level solutions…..in a predictable and repeatable manner to improve business results Infrastructure – The various elements (activities) of a system that must exist to allow the predictable and continuous operation of that system to achieve expected results Initialization – The process of preparing a company for the development of the necessary infrastructure required to achieve excellent results from a Six Sigma implementation and to achieve self-sufficiency Initialization

10. Initialization - Overall Deployment Planning Initial Launch Planning Train Executive and Top Management Team Define the Six Sigma System to be Implemented Select Core Team 1 2 4 3 Finalize Launch Planning Begin Implementation & Infrastructure Development Core Team Training Release Six Sigma Handbook and Guidelines 5 6 8 7 High Level Implementation Roadmap

11. Initialization - Overall Deployment Planning Apply Infrastructure and Support Systems Select BB’s and Projects for Wave 1 BB’s Begin Green Belt and Yellow Belt Training Train Champions 9 10 12 11 Implement Process Management • Consecutive BB, GB, YB Waves • Master Black Belt Development • Project Tracking & Reporting 13 14 High Level Implementation Roadmap

12. Initialization - Initial Launch Planning Determining the Scope of the Deployment

13. Launch Planning Phase Implementation Phase Institutionalizing Phase Sustaining Phase • Key Activities • Executive 1:1 Interviews • Key Implementation Leaders Selected • Executive Management Training • Define Year 1 Implementation Plan • Core Team Selected and Trained • Rev 1 Six Sigma System Definition Released • Begin Initialization • Establish Deployment Strategy • Rev 1 Six Sigma Handbook • Develop Communications Plan • Establish Management Commitment Letter • First Employee Announcements letter • Budgeting • Establish Performance Expectations/Goals • Initiate Compensation Plan • Identify Initial Champions • Establish 3 Year Plan SCHEDULE & TIMING • 2 to 3 Months • Key Activities • Communications Plan Executed • Train Champions • Identify First Projects • Train First Waves of BB’s • On-Site Support • Infrastructure Completed • Launch Initial GB/YB Training • Six Sigma Metrics Established • Measurement & Tracking Systems Established • Train Functional Mngmnt • BB Certification Process Established • Champion RefresherTrng • Train Initial MBB’s • Begin All Employee Awareness Training • Six Sigma Handbook Rel 2+ • Quarterly Exec Reviews • First Recognition & Rewards Event • Pilot Customer Engagement ProcessSCHEDULE & TIMING • 9 to 10 Months • Key Activities • Full Scale GB/YB Training • Engage Suppliers • Develop Internal Training Capability • Complete BB & MBB Training Waves to Full Quantity • Second Annual Rewards & Recognition Event • Spot Champion Revitalization Training • System Refinement & Improvement • Quarterly Exec Reviews • Full Customer Engagement • Launch Design for Six Sigma Training • BB Re-Integration PlanningSCHEDULE & TIMING • 12 Months • Key Activities • Continue GB/YB Training • Complete Design for Six Sigma Training • Migrate BB’s & MBB’s Back into Functional Roles • Continue Supplier Deployment • System Refinement & Improvement • Progress Reviews • Annual Rewards & Recognition Event • Quality Performance Improvement • SCHEDULE & TIMING • 12 Months Year 2 Year 3 Year 1 Initialization - Initial Launch Planning

14. Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 CY02 CY03 CY04 Initialization - Final Launch Planning Propulsion Systems Manufacturing Pneumatics and Servos Manufacturing Command Console Systems Integrators Sales And Marketing Administrative Functions Design/Development Engineering Customers and Suppliers Plan the Deployment Sequence

15. Initialization - Final Launch Planning 1 Year Detail Planning for All Needed Events

16. Core Team Training Hard Copy Six Sigma Handbook Core Team Workshop 1 Engage Process Core Team Workshop “N” Six Sigma System Requirements Web Based Six Sigma Handbook Best Practices Defined and Auditable System Templates for Handbook Self Integrating Six Sigma System Client’s Uniqueness System Knowledge & Expertise Experienced Facilitation Consistent Six Sigma Deployment Inputs Infrastructure Development Process Outputs Initialization - Developing Infrastructure Infrastructure is Developed by the Companies Support Organizations and Representatives From Each Major Organization

17. Initialization - Infrastructure Elements • Deployment and Launch Planning • Human Resource Guidelines • Finance Guidelines • Information Technology Requirements • Communications • Project Guidelines • Project Tracking and Reporting • Goal and Objective Establishment Infrastructure Elements Bring Clarity and Certainty to an Organization Implementing Six Sigma

18. Initialization - Infrastructure Deliverables • Deployment & Launch Planning • Six Sigma Management System Definition • 3 Year Long term Plan • Goals and Expectations • Key Participant Selection • Overall Deployment Plan • Detailed Near Term Actions • Initialization Planning • Training Schedules and Logistics • HR Guidelines • Competency Models and Selection • Position/Assignment Descriptions • Reporting Relationships • Graduation and Certification Criteria • Career Planning/Development • Titles, Compensation & Retention • Rewards & Recognition • Employee Status Tracking Requirements • Communications Plan • First All Employee Communications Letter • Overall Communications Strategy • Tactical Plan (Who, What and When) • Message Content as a Function of Time • Integration with Other Initiatives • Frequency of Communication • Method/Mediums of Communication • Definition of Expectations and Effectiveness • Project Guidelines • Recognition and Definition Criteria • Project Type Categorization • Problem Statement and Objectives Criteria • Project Valuation Targets • Project Approval Process • Project Review and Reporting Criteria • Project Completion Requirements • Moving into Realization & Closing Phases

19. Initialization - Infrastructure Deliverables • Project Tracking and Reporting • Customization for Financial System • Customization for Organizational Structure • Software User Manuals and Training • Email System Integration • Report Generation • Input Reporting Frequency • Information Technology Support • Intranet Development • Final Report Database • Notebook Configuration and Support • Software Installation Templates • Project Tracking System Development • Backup Procedures • Finance Guidelines • Finance Rep Identification and Training • Project Valuation • Project Forecasting Requirements • Methods of Evaluation • Project Completion • Reporting Frequencies • Goal Establishment • Quantity of MBB’s, BB’s, GB’s & YB’s • Rate of Deployment/Training Goals • Quantity of Projects/BB/Year • Financial Expectations per Project • Yearly Financial Contribution • Metrics Goals • Organizational Goals

20. Process Management • Process Management is a structured approach to aligning and optimizing how business processes work together to repeatedly and consistently deliver results/value to a customer • General steps toward process management • Identify core processes, generally 5 to 10 and prioritize for assessment • Designate “Process Owners” • Educate the organization in process management principles and techniques • Assess current end to end process performance and set operating targets • Use process improvement methods, IE Six Sigma, to improve performance to targets

21. Process Management • Education content for Process Management • Voice of the Customer • Organizational and team effectiveness • Flow charting • Workflow and data modeling (X’s and Y’s) • Capability analysis • Measurement systems analysis • Change analysis, solution implementation and change management • Process monitoring and control

22. A Process D E Process Process B C Process Process Process Management & Improvement Key Process Map Key Process Map Enabling Processes Core Processes Senior Management Owned Level 1 Manager 1 Manager 2 Middle Management Owned PCS Summary PCS Summary Level 2 Process Owner and Worker Responsibilities Level 3 Mgr A Mgr B Mgr C Mgr D Mgr E • Process Owners Use Process Management to: Manage & supervise their operation • Track & monitor process and results indicators • Assure predictability and stability of the process • Identify potential improvements • Improve the process •

23. Black Belt Project Q1 P1 P2 P3 Measure Control Analyze Improve Design of Experiment And/Or Solution Determination Process Management & Improvement Process Control P1 P2 Q1 P3 Q1 Indicator Chart P1 Indicator Chart Incapable Process GB Project With YB Support P2 Indicator Chart P3 Indicator Chart Out of Control Process

24. Project Assignment Solving “Fruit on the Ground,” “Logic & Intuition” “Process Control” Type Problems Solving “Process Optimization” “Complex Interaction” “Process Entitlement” Type Problems Quantity of Problems Solving“World Hunger,” “Boil the Ocean” Type Problems GB/YB Projects BB Projects Too Hard - Are Usually Management Caused Too Easy Difficulty and Cost of Problems

25. Achieving Self Sufficiency Goal(Six Sigma System) • An enterprise wide strategy that recognizes problematic areas of the business, defines improvement efforts and projects, determines and implements data driven breakthrough level solutions…..in a predictable and repeatable manner to improve business results • Initialization • Provides the structure for …. A predictable and repeatable enterprise wide strategy to improve business results • Process Management • Provides a method to….Identify potential improvement efforts and projects, improve processes and manage process performance • Six Sigma • Provides the knowledge to…. Determine and implement data driven breakthrough level solutions to problematic areas of the business

26. The Path to Self Sufficiency 3 What is Ultimately Achieved Core Competency Core Competency -The intellectual knowledge and capability of employees to quickly and accurately solve problems, to align and optimize business process and to make better decisions 2 The First Realization Business & Process Management System Business and Process Management -The way we view our business efforts, set our expectations, determine our decisions, and the way we lead the Company to optimally satisfy all of our stakeholders. 1 Where Most Start Quality Management System Quality Management -The set of strategies, tactics and practices collectively used as a Company to competitively achieve business objectives and to satisfy customers. Six Sigma becomes the “Way We Think and Work”