Cindy Seaver Six Sigma Blackbelt and Honeywell Six Sigma Plus Muskegon Site Leader

1. The POWER of Six Sigma Cindy Seaver Six Sigma Blackbelt and Honeywell Six Sigma Plus Muskegon Site Leader

2. How Six Sigma Relates to Project Management • Tools for projects • Relates to other management disciplines • Related tools • Resource management • Process maps-work breakdown structure Similarities Differences • 6 changes the culture • Every employee trained • Every project uses 6 tools • Benefits captured & reported

3. History of Six Sigma Began in 1987 when Motorola published it’s Six Sigma quality program. Developed by Mikel J. Harry. Motorola won the Malcom Baldrige Quality Award

4. What is Six Sigma (6 )? 6 =3.4 defects per million opportunities 99.9997% error free operation Methodology/tools to move toward this target Combines the right people with the right projects using the right tools

5. Statistical Sigma Level Defects per million Typical Industrial Company Operates at 4 5 Sigma Results at Shanghai Garrett PlantE-News, January 3, Company-wide News Section -- Achieving a 5 Sigma for any operation is a notable accomplishment. Achieving this high level of performance for an entire plant is an even more impressive feat. That's what occurred at Garrett® Engine Boosting Systems' plant in Shanghai, China, which is performing above a 5 Sigma level by providing customers with the highest level of quality and customer service. The "5 Sigma" means the plant is maintaining a 99.977% error-free performance -- a defect rate of less than 233 parts per million.

6. Telephone Companies • 4 Sigma = No phone service 4 hours/month • 6 Sigma = No phone service 9 seconds/month Examples of Sigma Electric companies operated at • 4 Sigma = no power 1 hour/week • 6 Sigma = no power for 2 seconds/week

7. 6 Evolved - Incorporation of Business Related Goals Company leadership that sees the vision and supports from the top Team members use Six Sigma methodology to resolve issues “Bottom line” focus, target $ savings Projects start/link with company goals

8. Improvement strategies for: • Reducing Variation • Variation is the enemy! • Reducing Cycle Time • In order to be quicker, we must simplify! • Reducing Costs • Reducing total life-cycle cost requires improvements in all processes associated with the product or service!

9. Key Benefits - Dollar Gains • New ideas and products that come from Six Sigma effort • Increased productivity • Increased sales • Increased customer loyalty • 1 in 5 projects at Dupont is creating revenue as well as cost cutting

10. X X X X X X X X X X X X X X X X X X X X X Variation- Which Pilot Would You Choose? Airplane landing’s example

11. Who is Using Six Sigma? Dow trained thousands since 1999 Dupont 1,139 Blackbelts, >$1 billion/year savings • >$1.5 billion savings in 2000, • $188 million in 1998 • Motorola has been doing since the 80’s Honeywell saved $1.5 billion 1993-1997, >$500 million in 1998

12. Wall Street’s Response to Six Sigma • Companies started touting increases in earnings as results of Six Sigma initiatives “Companies get more than statistics with Six Sigma”

13. Six Sigma’s Secret • Fact’s oriented • Statistics improve the decision-making process • Statistics instill confidence in changes • Build a team of problem solvers • Greenbelts, Blackbelts, Master Blackbelts • Intense company wide training • All employees • Management is trained to understand and support • Cultural company-wide change

14. Structure of Six Sigma Projects-DMAIC 5 Steps of Project Management 5 Steps 6 Define Measure Analyze Improve Control Initiating Planning Executing Controlling Closing

15. Company Need Company Vision Project Definition No Project Approval Yes Form Team The Six Sigma Process Define • What are the company goals? • What is the actual issue/project? • Does it need a Six Sigma Team • Cross functional team members • Problem solving, process improvement or development • Leadership approves team & needed resources • Define customer requirements

16. The team gets together and completes a team charter. They all agree on the goals. Team CharterReturnable Container Process Team

17. What are the REAL customer requirements and rank them! Customer Requirements

18. Measurement Phase Collect existing data Run DOE’s Need more Data? Collect data Yes No Analyze Data Yes The Six Sigma ProcessMeasure • Identify “key” characteristics that can be measured • Collect/review statistically • Develop detailed process map • Use other tools • ie. Cause & Effects Diagram • Gage R&R • Process Capability • Benchmarking

19. NOWpak® Process Map How is the process done, step by step.

20. Cause & Effect Diagram Steps taken from Process Map and rated as importance to customer requirements

21. NOWpak® II Process FMEA-Critical Issues

22. Analysis Phase Statistically analyze data Review data and draw conclusions Brainstorm and propose solutions The Six Sigma ProcessAnalyze • Understand the root cause driving defects (why-why-why-why-why) • Brainstorm • Use tools • FMEA • reduce process waste • eliminate scrap • eliminate rework • Prioritize & Plan Proposed Solutions

23. Change the process Monitor the process Modify the process The Six Sigma ProcessImprovement • Change the process • Acquire appropriate approval • Create new process map • Train appropriate people • Purchase equipment • Implement new process • Monitor & Quantify the improvement • Run chart • Control charts • Histograms • Modify process as needed based on data collected

24. NOWpak® Improvement Recommendations Equipment Improvements Short Term • Install bar coding equipment ASAP, priority project • Purchase scale and cart for NPII filling process • Storage area designated for NPIIs • Install dual manifold for filling Long Term • Dedicated NOWpak® filling room with appropriate conveyors for moving containers safely and in a “flow” • Filling by weight is timely, develop better/faster ways to fill containers

25. Control Phase Develop plan on maintaining the improvements Process working Team returns to analysis phase Becomes standard operating procedure Communicate & Reward The Six Sigma Process Control • Ensure that the modified process now enables the the key variables to stay within acceptable ranges

26. Exercise: Applying DMAIC • Think of the things you value doing on a day off • Select one that is most important to you

27. Example: Achieving What’s Important USING THE PROCESS IMPROVEMENT MODEL

28. Capture the $$Benefits of Six Sigma • Capacity increase • Fixed cost takeout • Variable cost takeout • System cost takeout • Product mix improvement • Sales growth • New product sales growth

29. Six Sigma Throughout An Organization • Manufacturing & Engineering • Maintenance • Administration & Support • Technology • Planning & Design • Sales & Marketing

30. What it takes to be a Six Sigma Organization • Not a spectator sport • Leadership commitment • Cultural Change • Customer Focus & Driven

31. Levels of Training • Introduction - 2 days, terms and tools • Fundamentals - 3 days, how to use tools • Greenbelts - 3 days, leaders of projects • Blackbelts - 4 weeks, site expert & trainer • Master Blackbelts - 8-12 weeks +, mentor & teach

32. Six Sigma Intangibles • Cross functional teams • Document actual processes • Use project data for training • Find & utilize talent throughout the organization One focus throughout the entire organization

33.   11UncontrolledInputs High Level Process Map         Tasks  Result/Output  Controls/Settings

34. Process Map What: A picture of what we do in each step (the tasks, process controls), the results (outputs) produced and inputs which we don’t control, like room temperature. Why: The map gives all team members a common understanding of key potential sources of variation and defects. Conceptual Example: Restaurant Process for Toast Steps Right D’kness Right Spread Hot Del. in 5 Min. Take Order Toast Bread Add Spread Deliver to Customer Appetite Bread Ask Customer Get Bread Spread to Order Get Toast Write Order Load Toaster Jelly to Order Deliver to Table Take to Kitchen Start Toaster Cut Toast Get Feedback Turn Off Toaster Arrange on Plate Remove Bread Put on Pickup Shelf Call Server Order Neatly Written Butter at 90° F Age of Bread Darkness to Order Spreads match order Toaster Power Toasting Time Temp. at Start Time to Order P/U Line Voltage Age of Elements Tasks Result/Output ControlSettings UncontrolledInputs (“Noise”)

35. Summary 6 =3.4 defects per million opportunities 99.9997% error free operation Methodology/tools to move toward this target NOT another Quality Program, it’s a way of doing business!