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Sabancı's Six Sigma Journey: Achieving World Competitiveness through Lean Six Sigma Methodology

Learn about Sabancı Holding's implementation of Lean Six Sigma methodology, including the training of Black and Green Belts, deployment phases, and the successful completion of various projects resulting in significant gains.

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Sabancı's Six Sigma Journey: Achieving World Competitiveness through Lean Six Sigma Methodology

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  1. Sabancı’s Six Sigma Journey 10 May, 2008 Ersoy Nisanoğlu , enisanoglu@sabanci.com İrfan Özlem Alikaya , oyurtaydin@sabanci.com Rıza Murat Yılmaz , myilmaz@sabanci.com

  2. Six Sigma has been launched twice, in 2004 and in 2006 • The first Six Sigma Black Belt training (1st wave Black Belt training) was started in May 2005 at Beksa, Brisa, Gidasa Marsa Piyale, Advansa, Akcansa and Bossa. • By the end of the same year 2nd wave Black Belt training was completed(Advansa – 2000; Kordsa – 2002) • With the consideration the portfolio of businesses that Sabanci Holding, the need of additional methodologies arose • Addition of the “Lean Approach” to the Six Sigma methodology • Targeted 30% reduction in the unit costs by the end of 2005 • The start of a continuous improvement journey with the strategic objective of achieving “world competitiveness” or differentiation by the lowest unit cost • The need to provide the organization with the right tools, techniques and methodology was identified “3005 Program” started SABE team initiate new approach to Six Sigma • Formation of a new roadmap • The “Dark” Green Belts : the base of the Six Sigma deployment Lean Six Sigma Methodologyis introduced Six Sigma initiated and initial assessment was done 1st and 2nd Wave Black Belts trained • Initial assessments of Holding companies • Classification the companies by their improvement strategy whetherbeing data driven or knowledge base. 2003 2004 2005 2006 2007

  3. 126 Green Belts, 75 Black Belts Since 2000 3rdSabancı Black Belt & Green Belt Trainings 2ndSabancı Black Belt Training 1stSabancı Black Belt Training Kordsa Green Belt Training

  4. Deployment Phases Preparation - 7 month - 6 month - 5 month - 4 month - 3 month - 2 month - 1 month HR & Finance Integration • HR & Finance Responsibilities • Role Definitions BuildingInfrastructure • Organizational Structure • Communication • Software Standardization • Training Requirements • Documentation

  5. Deployment Phases Initialization Development Deployment Management • Leading change management • Upgrade Trainings • Financial Validation of Projects & Effect on Next Year Budget • Training Cycles • Rewards & Recognition MEASURE • Executive Awareness Building • Desinging Infrastructure • Establish KPI’s • Budgeting • Selecting Candidates • Selection of Projects • Scheduling Trainings • Upgrade Trainings • Financial Validation of Projects & Effect on Next Year Budget 3rd Year • Validation of 2nd Wave Projects • Certification of Belts • 3rd Wave Trainings • Review Financial Benefit & Effect on Next Year Budget • Rewards & Recognition 2nd Year • Include Customers and Suppliers • 2nd Wave Trainings • Rewards & Recognition KICK OFF • 1st Wave Trainings • Rewards & Recognition 1st Year Next

  6. What is Next? • Approval of the Project and the time line of the project • Collecting the feedbacks and integrating it to the project • Appoinment of the necessary resources for the project Preparing the Project report Development of the project time line Preparation Phase Initilization, Development, Deployment & Management Phases

  7. 21 Advansa & 19 Kordsa Projects $ 17.821.000 realized gains from 185 projects since 2000 33Projects including 2nd and 3rd Wave Projects 91 Projects & Gains* will be realized next year 21 Projects including 1st Wave Projects * Expected Gains cover Pilsa and Gidasa projects; however at the moment the progress of these Companies’ projects is unknown.

  8. However Research Show That Only 16 % of Change Programs are Successfully Delivered 53% Underperform (late, over budget and / or deliver less than the requirement) • Lack of Exec. Mgmt. support & comm. • Lack of consistent follow-through • Lack of implementation capacity • Unclear, unrealistic objectives • Incomplete requirements • Poor communications • 16% Successful (delivered on time and on budget) • Clear statement of requirements • User involvement • Exec. Mgmt. support • Proper training • 31% Cancelled • Business Case invalid • Funding • Prioritization Most Transformations Fail Usually Due To Poor Ownership Building CHANGE MANAGEMENT Source: European Lean Six Sigma Summit Amsterdam, Anderson Mannson - Ericson 8

  9. THANK YOU

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