Agenda

1. Agenda • Introduction to Six Sigma • Process Improvement—Collaborative Effort • UGA Process Improvement Team • UGA AIM Team Panel Q&A

2. Some “World is Flat” QuotesThomas Friedman & Michael Hammer • “There are two ways to flatten the world…use your imagination to bring everyone up or …to bring everyone down, to the same level • There is one thing…that can never be commoditized-and that is imagination • One thing tells me that an ‘organization’ is in trouble is when they tell me how good they were in the past

3. Change in Your Pocket • The hallmark of a truly successful organization is its willingness to abandon what made it successful and to start fresh • Change for Children and Six Sigma • Empowering “innovation”

4. Lean: Improves Efficiency Six Sigma: Improves Effectiveness Victory has a thousand fathers, but defeat is an orphan. ~ John F. Kennedy Quotes Process Improvement This is just like déjà vu all over again.~ Yogi Berra The People At Toyota, we get brilliant results from average people managing a brilliant process, others get average results from brilliant people managing broken processes. - Toyota

5. Why is Six Sigma accuracy important? • Because at 99% accuracy (4 Sigma): • Two short or long landings at major airports each day • 5,000 incorrect surgical procedures every week • 20,000 lost articles of mail per hour • No electricity for almost 7 hours each month • At least 200,000 wrong drug prescriptions each year • 50 dropped newborn babies each day Source: American Society for Quality

6. Lean Six Sigma: Two Complementary Approaches • Six Sigma… • Emphasizes need to recognize opportunities and eliminate defects • Recognizes that variation hinders ability to reliably deliver high-quality services • Requires data-driven decisions and incorporates a comprehensive set of standard tools for effective problem solving • Provides a highly prescriptive cultural infrastructure effective in obtaining sustainable results • Lean… • Focuses on maximizing process velocity • Provides tools for analyzing process flow and delay times at each activity in process • Removes non-value added steps in process • Provides a means for quantifying and eliminating the cost of complexity

7. Lean Six Sigma Teamwork Customers Processes Process Flow Variation & Defects Speed Quality Data and Facts 1. Customers are important2. Speed, Agility, Quality and low cost are linked3. Eliminate variation and defects, focus on process flow to deliver quality, speed and low cost4. Data is critical to making sound technical decisions5. People have to work together to make improvements that customers will notice

8. DEFINE Measure Analyze Improve Control 1. Project Selection Tools 2. Value Stream Map 3. Financial Analysis 4. Project Charter 5. Stakeholder Analysis 6. Communication Plan 7. SIPOC Map 8. High Level Process Map 9. Non-Value Added Analysis 10. VOC & Kano Analysis 11. QFD 12. RACI & Quad Charts 13. Multi-Generational Plan 1. Operational Definitions 2. Data Collection Plan 3. Pareto Chart 4. Histogram 5. Box Plot 6. Statistical Sampling 7. Measurement System Analysis 8. Control Charts 9. Process Cycle Efficiency 10. Process Sizing 11. Process Capability 1. Pareto Charts 2. Fishbone Diagrams 3. C&E matrix 4. Brainstorming 5. Detailed “As-Is” process maps 6. Basic statistical tools 7. Constraint identification 8. Time Trap analysis 9. Non-Value Added analysis 10. Hypothesis testing 11. Confidence intervals 12. FMEA 13. Regression Analysis 14. ANOVA 15. Queuing Theory 16. Analytical Batch Sizing 1. Brainstorming 2. Benchmarking 3. TPM 4. 5S 5. Line Balancing 6. Process Flow Improvement 7. Replenishment Pull 8. Sales & operations planning 9. Set up reduction 10. Poka-Yoke 11. FMEA 12. Hypothesis Testing 13. Solution Selection Matrix 14. “To Be” Process maps 15. Piloting and simulation 1. Control Charts 2. SOPs 3. Training Plan 4. Communication Plan 5. Implementation Plan 6. Visual Process Control 7. Mistake-proofing 8. Process Control Plans 9. Project Commissioning 10. Project Replication 11. Plan-Do-Check-Act Cycle D-M-A-I-C - Toolbox

9. Collaborative Efforts OIIT and EITS Monthly Meetings Process Improvements Planning Status Project Management

10. UGA Process Improvement Team • AIM: Asset Inventory Management Team • Chartered March 2006 • Issue: Lost Inventory

11. AIM: Asset Inventory Management Team What are the issues? • Lost Assets • Approximately 250 asset inventory pieces lost in 2005 year for a cost of $286,460 (~ 7% of inventory based on 3500 assets) • The value for write-off in the last three years are as follows: • 2003: $75,863 • 2004: $198,312 • 2005: $286,460 • Data are misleading

12. AIM Process Improvement Team& Principles of Six Sigma

13. Ideal Solution

14. Summary • Current Process • Ineffective • Scope of full solution is large and spans departments • Employees are not given enough information • Training • Current inventory information • Requesting Approval and Funding to Implement Proposed Solution • Start small with a foundation to expand • Connectivity to other existing databases • Future reports and functionality • Immediate benefit • Give employees and managers better tools

15. AIM Next Steps • Implement Phase I and Phase II of recommendations • Phase I Project Scope has been completed • Phase II Initiation will be started toward the end of this month

16. UGA Process Improvement Next Steps • Two Additional Process Improvement Team to Report • Planned Outages • Unplanned Outages • Six Sigma Basics Website • Host Additional Training