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030602MVA_he_ZZT_7860GEhasbecomethe"posterchild"oftheSixSigmamovement19878890929495969899012002CumulativeFortune500programlaunches

EstimatesEra1(1987)QualityEra2(1994)FinancialperformanceEra3(1996)

PerformanceImprovementUmbrellaEra4(2000)StrategicissuesWhydidGEadoptSixSigma?Intensepressureonmarginsandnoroomforpriceincreases–premiumonproductivityMediocrequalityanddisappointedcustomersBillionsofdollarslostincostof

poorqualityReenergizeGE'sproductivitymachineEngineforculturaltransformationEvolutionofSixSigmaGE Source: McKinsey030602MVA_he_ZZT_7860GEhasbe030602MVA_he_ZZT_7861Deliveryexample"SixSigma"hasitsrootsinstatisticalprocesscontrolBeforeAveragedeliverytime:45minutes55minutes(Commitmenttocustomer)Before:

2(i.e.,30.85%deliveredoutsidetargettimes)After:

6(i.e.,only0.0003%deliveredoutsidetargettimes)35minutes Source: McKinseyCritical-to-qualitymetric:on-timedelivery7articleslostperhour1.7incorrectoperationsperweek1shortorlonglandingevery5years68wrongprescriptionsperyear99.99966%Good(6Sigma)99%Good(3.8Sigma)Otherprocesscapabilityexamples20,000lostarticlesofmailperhour5,000incorrectsurgicaloperationsperweek2shortorlonglandingsatmostmajorairportseachday200,000wrongdrugprescriptionseachyearAfter20,000lostarticlesofmailperhour5,000incorrectsurgicaloperationsperweek2shortorlonglandingsatmostmajorairportseachday200,000wrongdrugprescriptionseachyear030602MVA_he_ZZT_7861Delivery030602MVA_he_ZZT_7862TheSixSigmaprogramhasthreekeyelementsBrainstormingAffinitydiagramsMulti-votingHypothesistestingParetochartsFishboneProcessmappingRootcauseproblemsolvingMaster

BlackBelts

(fulltime)SupportkeylineexecutivesResponsibleforprojectselection,training/

coachingofBlackBeltsandreportingprogressBlackBelts(fulltime)LeadimprovementprojectsthroughDMAICcycleReceive4weeksofup-fronttrainingGreenbelts(parttime)ProvideBlackBeltswithsupporttogetprojectsdoneReceivelessintensivetrainingStatistically-focusedproblemsolvingtoolsDedicatedandcertifiedresources3. Focusesonreductioninvariationofkeymetrics2. Drivesmeasurementanddata-drivenanalysisofmetricsthatarecriticaltocustomers1. Createsstandardized,disciplinedproblemsolvingapproachusedacrosscompanyAllSixSigmaimprovementeffortsoptimize

processesbyreducingvariationDefinetheproblemMeasuretheproblemDefineMeasureAnalyzeImproveControlAnalyzeandidentifythegapIdentifyandimplementsolutionsTrackandreviewprogressDMAICPrescriptiveProblemSolvingProcess–"DMAIC"DesignofexperimentVoiceofthecustomerQualityfunctiondeploymentANOVAEtc.030602MVA_he_ZZT_7862TheSixS030602MVA_he_ZZT_7863ImprovementinfrastructureGE'sSixSigmasuccessisbasedonathoughtfulunderstandingofthedriversoflarge-scalechange1243SetaspirationsArchitectprogramImplementchangeBuildmomentumEffective,well-orchestratedlaunchTraintopleadersandsetaspirationsArchitectprogramandbeginmassivecommunicationdriveSelectanddeployhigh-potentialresourcesExecutehighprofileprojectsandmaketeamsheroesRelentlesslycommunicatesuccessesandchangestocomeGEusedseveralcoreelementsofsuccessfultransformationprogramsOrganizationalenablersLeadershipIntenseinvolvementof

topandlineleadershipProgramdesignRobustroadmapandprocessesPerformancemanagementGoalsbakedintobudgets

atalllevelsDedicatedresourcesBestresourceswithclearcareerpathsTalent/skilldevelopmentMulti-leveltrainingProgramsupportRuthlessprojectmanage-mentProblemsolvingDisciplineduseofDMAIC

andtools199619961996-971997 Source: McKinsey030602MVA_he_ZZT_7863Improveme030602MVA_he_ZZT_7864SixSigmaprojectsfollowadisciplinedapproach

toroot-causeproblemsolvingClearlydefine

theproblem,thegoal,andtheprocessBaselineandfurtherrefinetheproblemAnalyzetoidentifythe"vitalfew"

rootcausesSelectsolu-tions;testonpilot;imple-mentfullscaleControltheprocesstosustaingainsDefineMeasureAnalyzeImproveControlWhatistheproblem?Goal?Customers?Processtoimprove?Whatistheex-tentofthepro-blem?EfficiencyEffectivenessWhatdatadoweneedtogettotherootcauses?RangeofoptionsSolutionsBestpragmaticsolutionsFullrangeofsolutionsTheselectfewThe"optimalandpragmaticsolu-tion"SmallscalepilotFullscaleimplementationTacticallevelProcessstandardizationProcessthrough-putStrategiclevelDisciplineduseofbusinesspro-cessmanage-mentbysteeringcommitteeKeyelementsDeliver-

ablesClarityonwhatis"inscope"andwhatis"outofscope"In-depthunder-standingofhowbigtheproblemisanddatatogettothebottomofitDatadrivenrigorouscon-clusionsonthevitalrootcausesfortheproblemFullyimple-mentedsolu-tionbasedonlessonsfrompilotStableprocessSystemtokeepitstableFullyintegratedintobusinessgoalsExecutivesfullyinvolved Source: McKinseyDMAIC030602MVA_he_ZZT_7864SixSigma030602MVA_he_ZZT_7865SixSigmahashadhighimpactonservicebusinessesProblemdefinitionReduceaccountsreceivablesto

best-practicelevelsin24weeksOrganizationalenablersandimprovementinfrastructureCFOsponsorwithdivisionheadspresentatprojectlaunchCFOanddivisionheadsattendkeystatusreviewsBlackBeltcoachandguidebutledbyfinancemanagerProjecttrackedbySixSigmastaffandthroughsteeringcommitteemeetingsProblemsolvingmethodology

andtoolsDMAICToolsusedonproject–brain-storming,fishbone,pareto,histo-grams,scatterplots,checksheets,controlchartsis-isnot,forcefieldanalysis,simpleFMEA,poke-yokeResultsReducedARby90%forannualbenefitsexceedingUSD4millionSampletoolsusedFishbone–defectiveinvoiceManMeasure-mentMachineMethodMaterialEnvironmentDefectiveinvoiceTrainingMetricsNocheckagainstPOParetoRecommendationsControlchartPOT&CDeli-veryOtherImproveinvoicequalitybyfollowingactionsMandatorycheckofPOagainstinvoice5-daytrainingofpersonnelbyexperiencedguruswithbestpracticesOneinvoiceperPOwithitemizedlistofallitemsImplementsegmentbasedcontrolsystemforcustomers.SettargetgoalintoannualMBOtoensureaccountability

Setguidelinesforaction,red,yellow,greenflagsforescalatingactionsObservestrict$$penaltiesforlatepayment

Monitorecontrolchartofkeymetrics

Days(USDdelin-quencydays)=USDinvoicexdayslateUppercontrollimitUpperspec.limitLowerspec.limitLowercontrollimitSpecialcauses Source: McKinseyPROJECT–REDUCEDELINQUENTACCOUNTSRECEIVABLES030602MVA_he_ZZT_7865SixSigma030602MVA_he_ZZT_7866GreenbeltBlackbeltExecutivesponsor/

divisionmanagerPart-time-positionleadingSixSigma.ContinuesfulfillingcurrentjobresponsibilitiesTrainedinSixSigmatools,providesfunctional/divisionalknowledgeandexpertiseMentoredbyablackbeltCommunicatesSixSigmamethodologytoothersintheorganizationFull-timededicationtoSixSigma;LeadsprojectsandsharesresponsibilityfordeliverablesApplies"right"SixSigmamethodologyandtoolstoensurequalityofprocessEscalateissuestomanagementTrainsandcoachesteammembersProposesSixSigmaimprovementprojectsandresponsiblefordeliverablesResolvesissuesPromotesSixSigmastrategyandmethodologyUnderstandsSixSigmastrategy,disciplineandtoolsSixSigmaroles Source: McKinsey030602MVA_he_ZZT_7866Greenbel030602MVA_he_ZZT_7867AlthoughtheimpactfromSixSigmahasbeensignificantforGE...PercentofsalesSixSigmanetfinancialimpact*

USDmGEtotalrevenues

USDbn-205507601,4902,0007990100112130SingleperformanceimprovementthemeCustomerperspectiveCommonlanguageFactbasedproblemsolvingEnhancedcapabilitiesPowerfulengineforcultural

changeFacilitatedsuccessofotherinitiativesHarddollarbenefitsforGESoftbenefitsforGE Source: McKinsey030602MVA_he_ZZT_7867Although030602MVA_he_ZZT_7868WeaknessesProject-centricQuickwinsremovefocusonstrategicmovesContentneutralprocessprescriptiveNeedsstrongorganizationalelementtosucceedDisconnectspossiblebetweenqualityandsavings...SixSigmaisnotapanaceaforallills–ithasitsown

setofstrengthsandweaknesses Source: McKinseyLeancan

complement

SixSigmatoovercome

manyofitsmajor

weaknessesStrengthsCommonlanguageCustomerfocusBottom-lineresultsReallinemanagementinvolvementFact-basedproblemsolvingmethodologyComprehensivesetoftoolsBuildsnewgenerationofleadersTakescapabilityoforganizationtonextlevelStronginfrastructurehelpsotherinitiatives030602MVA_he_ZZT_7868Weaknesse030602MVA_he_ZZT_7869Moreover,fewcompaniesareabletouseSixSigmaeffectivelyduetoasmallnumberofrootcauses Source: McKinseyLackofrealinvolvementbytopandlinemanagement–SixSigmaisaprogramrunbyastafforganizationRewardsandincentivesarenotalignedwithSixSigmaprogram–nobreakdownandassignmentoftargetsforlinemanagementwithaccountabilitytiedtoincentivesStaffingSixSigmawithdeadwoodinsteadoftoptalentIneffectiveprojectselectionsystemIneffectiveprojectmanagementwithnodropdeaddatesforprojectsNoeffectivesystemforbestpracticereplicationRapidtrainingoflargenumbersofpeople–whohavenoprojectstoworkonProcessmeasures,suchasnumberofpeopletrained,numberofprojectslaunchedonlyassessprogressandnotresultsLackofunderstandingofthedifficultiesinherentinchangemanagementTypicalrootcausesforineffectiveSixSigmaimplementation030602MVA_he_ZZT_7869Moreover030602MVA_he_ZZT_78610SixSigmaspaceandourcapabilities Source: McKinseyClientneedsOurcapabilitiesConsideringSixSigmaandneedanobjectiveassessmentofprosandconsSixSigmaisnotdeliveringexpectedresultsandneedarapidassessmentandrecommendationstofixitNeedhelpinacceleratingexistingandunder-performingSixSigmainitiativeNeeddeepsubjectmatterexpertiseandprescriptivesolutionstomovetothenextlevelofperformanceSixSigmaExecutiveAwarenessTraining–objectiveviewofSixSigmaforexecutivesSixSigmaDiagnostic–3-5daySixSigmadiagnosticofSixSigmacompaniesSixSigmaAcceleration–forcomatoseprogramsbybuildinganeffectivetransformationenginetocomplementtheirproblemsolvingandtoolsalreadyinplaceInfusionofdeepprescriptivefunctionalknowledgeintocompanieswithrobustSixSigmaprogramsLeanSixSigmaPricingSourcingSupplychainmanagement030602MVA_he_ZZT_78610SixSigm030602MVA_he_ZZT_78611LeanSixSigmaintegration030602MVA_he_ZZT_78611LeanSix030602MVA_he_ZZT_78612ManycompanieswishtobuildontheirSixSigmaprogramsThecompanyhaslaunchedacompanywideSixSigmaprograminresponsetoexternalpressuresseveralyearsagoAsizeableinvestmentandeffortshavebeenputintoresourceinfrastructurebuilding,andtrainingAftershowingearlyreturns,therateofimprovementhasbeguntoslowThereisinterestinfurthercontentadditionspecificallyaroundembracingleanmanufacturingManagementacceptanceandcommitmenttocontinuingtheSixSigmaprogramremainshighThecompanywouldliketocontinueimprovementsbyseamlesslyintegratingLeanintotheSixSigmaprogram030602MVA_he_ZZT_78612Manycom030602MVA_he_ZZT_78613DespitesomecommonelementsleanandSixSigma

havesignificantdifferencesWhatis......anintegratedoperatingsystem

ofprinciples,practices,toolsandtechniques...astructuredimprovementmethodologyusingastandardapproachandstatisticaltoolsDrivingprincipleReducewasteSynchronizeflowsManagevariabilityReducevariationOperationalKPIscascadedtofrontlineProjectmetricsPerformancemanagementLeanexpertsTeamleadersNaturalteamsInfrastructure&involvementBlackbelts,MBBs,GBsSixSigmaprojectsupportAdhocteamsPrescriptivesolutionsOnepieceflowPullSystemSMEDStandardizedworkPrescriptiveprocessesDMAICDMADV/DFSSStatisticalapproachesDOEGaugeR&RProblemsolvingSystematicvaluestreammappingCurrentstateandfuturestateDrivenbykeyissuesandproblemsincurrentprocessesProjectselectionRootcauseanalysisProcessmappingBasicanalytictoolsLeanSixSigma030602MVA_he_ZZT_78613Despite030602MVA_he_ZZT_78614SynergiesbetweenLeanandSixSigmaSixSigmaShortfallsProjectcentricElitistRigidprocessKPIdisconnectNoprescriptivesolutionsHoweverLeanandSixSigmacanbehighlycomplementary030602MVA_he_ZZT_78614Synergie030602MVA_he_ZZT_78615SynergiesbetweenLeanandSixSigmaLeanPositivesHolisticandsystemsorientedFrontlineinvolvementStandardpracticesKPIdeployedtoalllevelsEndstatedrivenprojectselectionPrescriptivesolutionsSixSigmaShortfallsProjectcentricElitistRigidprocessKPIdisconnectNoprescriptivesolutionsHoweverLeanandSixSigmacanbehighlycomplementary030602MVA_he_ZZT_78615Synergie030602MVA_he_ZZT_78616LeanShortfallsDifficulttounderstandDifficulttoscaleRigorcansufferWeaktietobottomlineTopmanagementunderstandingsuperficialHoweverLeanandSixSigmacanbehighlycomplementarySynergiesbetweenLeanandSixSigmaLeanPositivesHolisticandsystemsorientedFrontlineinvolvementStandardpracticesKPIdeployedtoalllevelsEndstatedrivenprojectselectionPrescriptivesolutionsSixSigmaShortfallsProjectcentricElitistRigidprocessKPIdisconnectNoprescriptivesolutions030602MVA_he_ZZT_78616LeanSho030602MVA_he_ZZT_78617SynergiesbetweenLeanandSixSigmaSixSigmaShortfallsProjectcentricElitistRigidprocessKPIdisconnectNoprescriptivesolutionsHoweverLeanandSixSigmacanbehighlycomplementarySixSigmaPositivesCommonlanguageScalableinfrastructureFactbasedrigorBottomlineorientedTopmanagementrelatesto

iteasilyLeanPositivesHolisticandsystemsorientedFrontlineinvolvementStandardpracticesKPIdeployedtoalllevelsEndstatedrivenprojectselectionPrescriptivesolutionsLeanShortfallsDifficulttounderstandDifficulttoscaleRigorcansufferWeaktietobottomlineTopmanagementunderstandingsuperficial030602MVA_he_ZZT_78617Synergie030602MVA_he_ZZT_78618ThetypicalintegrationapproachesaretoonarrowDonotunderstandfundamentaldifferencesbetweenLeanandSixSigma:viewLeanastoolkitvs.totalsystemapproachDonotincorporateLean'ssystemicvaluestreammappingandendstateviewinprojectselectionprocessDonottakeadvantageofLeanprescriptivesolutionstoavoidreinventingthewheelDonotensurefrontlineinvolvementDonotproviderequiredbreadthanddepthincapabilitybuilding:frontline,topmanagement,practitionersDonotalterperformancemanagementsystemtocascadeKPIstofrontline030602MVA_he_ZZT_78618Thetypi030602MVA_he_ZZT_78619Also,theydonotaddressthetypicalimplementationissuesLeanpitfallsSixSigmapitfallsLacksvisionTopmanagementLacksinvolvementResourcesInadequatecriticalmassEliteresourcemodelProjectselectionNotdrivenbyendstateNotconnectedtolinemanagement'srealprioritiesPerformancemanagementKPIsnotdefinedorcascadedProjectmetricsdisconnectedfromCTQsMiddlemanagementsupportandownershipWeakWeakDeploymentToolcentricProjectcentric030602MVA_he_ZZT_78619Also,th030602MVA_he_ZZT_78620WerecommendafivebuildingblockapproachtointegrationAssesswhethercurrentSixSigmaprogramprovidesarobustenoughplatformforintegrationDriveprojectselectionfromasystemicendstatevaluestreamviewDelineatebestproblemsolvingapproachforeachclassofproblemTriggerdemandbydefiningKPIcascadeMatchandpacecapabilitybuildingtoproposedroles&actionplansandaugmentwithLeanexpertsEnhancebyLeanKPI'scascadeandrealtimedialoguedowntofrontlinesPlanthemulti-yearjourneyonatimelineProgramreadinessProjectselectionandsolutionmethodologydecisionroadmapOrganizationalacceptanceandcapabilitybuildingPerformancemanagementImplementationplans1

2 345030602MVA_he_ZZT_78620Werecom030602MVA_he_ZZT_78621IntegrationofLeanandSixSigma

KnowledgeSessionC

030602MVA_he_ZZT_78621Integrat030602MVA_he_ZZT_78622WerecommendafivebuildingblockapproachtointegrationAssesswhethercurrentSixSigmaprogramprovidesarobustenoughplatformforintegrationDriveprojectselectionfromasystemicendstatevaluestreamviewDelineatebestproblemsolvingapproachforeachclassofproblemTriggerdemandbydefiningKPIcascadeMatchandpacecapabilitybuildingtoproposedroles&actionplansandaugmentwithLeanexpertsEnhancebyLeanKPI'scascadeandrealtimedialoguedowntofrontlinePlanthemulti-yearjourneyonatimelineProgramreadinessProjectselectionandsolutionmethodologydecisionroadmapOrganizationalcapabilitybuildingPerformancemanagementImplementationplans1

2 345030602MVA_he_ZZT_78622Werecom030602MVA_he_ZZT_78623Thediagnosticwillfocuson

threecriticalelementsElementsFinancialOperationalCultureCapabilitybuilding&trainingCommonoperatinglanguagePerformanceethicOrganizationCorefoundationsProgramleadership&

actionsChangeagents/talentmanagementRewardsandincentivesProvenimprovementapproachesandanalyticaltoolsCommunicationsystemSME/programadditionsPerformancemanage-mentandtrackingsystemKeyquestionsWhataretheconcreteresultsachievedsofar?Howhavetheculture,mindset,andbehaviorsoftheorganizationbeenchangedbySixSigma?Howrobustandwell-designedistheinitiativearchitecture?ConcreteresultsSoftbenefitsProgramarchitectureandimplementation030602MVA_he_ZZT_78623Thediag030602MVA_he_ZZT_78624ThediagnosticwillestablishoneofthreepathsgoingforwardMakesignificantimprovementstoSixSigmapro-gramandholdoffonaddingLeanAddLeantoexistingrobustSixSigmaprogramMakeimprove-mentstoSixSigmaprogramandaddLeanSixSigmaprogramisintroubleandneedsamajoroverhaultodelivermeaningfulresultsOverhauloftheprogramshouldbeginimmediatelywithcloseoversightfromthetopAddingLeanwillnotbeeffectiveatthispointSixSigmaisrunningwellanddeliveringresultsTheinfrastructureishealthyandthetimingisrighttosuccessfullytakeonanewinitiativeLeancanquicklyrealizesubstantialbenefitsbyapplyingprescriptivesolutionstoexistinghighyieldopportunitiesSixSigmaisperformingbutnotatitsfullpotentialTheprogramcanbetuneduptobestin

classwithoutamajoroverhaulAdditionofLeancanrealizehighpotentialopportunitiesthroughprescriptivesolutions030602MVA_he_ZZT_78624Thediag030602MVA_he_ZZT_78625Programreadiness–keyquestions

1.Doestheoverallapproachandframeworkmakessense?

2.Couldthistoolbeusedforclienteledevelopment?

030602MVA_he_ZZT_78625Program030602MVA_he_ZZT_78626ValuestreammappingshouldbeakeyelementinprojectselectionCompanyXValuestream1Valuestream2Valuestream9...ImportanceofvaluestreamtobusinessManufacturingstrategyOperationsassessmentBrainstormingideasComprehensivelistofimprove-mentideasforeachvaluestream030602MVA_he_ZZT_78626Valuest030602MVA_he_ZZT_78627Leanbasic

toolsLeansystem

designSixSigma

DMAICJustdoitForeachproblemtheoptimalsolutionsmethodology

shouldbeselectedExamplesRationaleWhererootcausesareveryclearandcanbeaddressedbytime-testedLeanprescriptivesolutionsChange-overreductionOverallequipmentefficiencyStandardizedworkWheretheproblemandsolutionsaresystematicandinvolveredesignofmultiplesteps,complexprocesses,orflowsPlantlayoutredesignSchedulingsystemsMaterialandinfor-mationflowchangesWhererootcausesareunclearandlikelytorequiresignificantdata-drivenana-lysisanduniquesolutionsinacross-functionaleffortCycletimevariationScrapandreworkProcessfluctuationsWheretheproblemrequiresnofurtheranalysisandcanbeaddressedbysound,well-definedpracticesJobinstructionVisualmanagementKeymetricsdisplayandtracking030602MVA_he_ZZT_78627Leanbas030602MVA_he_ZZT_78628Projectselectionandsolutionmethodologydecisionroadmap–keyquestions

1.Istheproposedprojectselectionmethodologycomprehensiveandhowimportantshouldvaluestreammappingbe?

2.Isasolutiondecisionroadmapnecessary?

3.Istheproposedroadmappracticalandrelevanttoyourclientsituations?030602MVA_he_ZZT_78628Project030602MVA_he_ZZT_78629TherearesixbasicimperativesinaddingleancapabilityCreateasequenceddeliveryUsemultipletrainingdeliverymethodsMatchcapabilitytorolesCreateaLeanexpertroleDefineoperationKPI'sandcascadeProvidethecontextforleancapabilitybuildingandtoensurethatcapabilitybuildingismirroredspecificallytomatchimprovementneedsEnsuresustainedexpertisetosupportimplementationinprojectsthatrequirespecificleanskillsandsystemdesignexpertiseTailorthecapabilitybuildingfordifferentlevelstotheroletheywillplayinleanintegrationAvoidoverwhelmingtheorganizationandprogram;derivemaximumbenefitfromactionlearningSequencedeliveryofprojects,training,andcapabilitybuildinginconcertwithprojectsformaximumimpactandeffectivenessUsearapidseedandcascadeapproachinrolloutSpeedimplementationacrosstheorganizationtotakeadvantageoftheexistingSixSigmainfrastructure123456030602MVA_he_ZZT_78629Therear030602MVA_he_ZZT_78630CreateasequenceddeliverytomatchtheorderofprojectrolloutTypicalactionsequenceKeyknowledgepointsCreateLeanawarenessBasicconceptsOverallapproachDesignCS/FS,selectprojectsValuestreammappingSystemdesignSustainimprovementsPerformancemanagementandimprovementgoalsOverallmaintenanceDeployLeantoolsTakttimeLinebalanceStandardizedworkImplementjust-do-itbasicelementsWastereduction5SVisualcontrolsProductiontrackingOEERCA&problemsolvingStabilitySMEDPMFlowLoopsPullKanbanLevelBasicflowormaterial&informationFlowCelllayoutMateriallocation030602MVA_he_ZZT_78630Createa030602MVA_he_ZZT_78631Organizationalcapabilitybuilding–keyquestions

1.Aretheproposedsiximperativesinaddingleancapabilityappropriate?

2.Anythoughtsonhowwecandevelopdeepleanexpertsatclients?

3.Willthesequenceddeliveryworkwell?030602MVA_he_ZZT_78631Organiza030602MVA_he_ZZT_78632Goodperformancemanagementsystemscanbeenhanced

bySixSigmaandLeanBasicPerformanceManagementSixSigmaRefinementsSpecificLeanEnhancementsBeforeaddingmoreadvancedpracticesbasicelementsofperformanceman-agementmustbemasteredSixSigmaisnotasubstituteforaneffectiveperfor-mancemanagementsystemKeymessagesCTQcascadeTimelyreviewsDisciplinedexecutionVisibleaccountabilityValuestreamperspectiveCascadetofrontlineBalancedmetricsPerformancedialogue030602MVA_he_ZZT_78632Goodper030602MVA_he_ZZT_78633ButnotifthefoundationisnotstrongDiagnosticconclusionsImplicationsStrongcorefoundationinper-formancemanagementwithenhancementsinplacefromSixSigmaWeakperformancemanagementsystemandSixSigmaservingasde-factoprojectcentricperformancemanagementsystemImplementLeantofurtherenhanceperformanceman-agementsystemandrealizeaddedvalueFixcorefoundationofper-formancemanagementsystemandholdoffonfurtheraddition030602MVA_he_ZZT_78633Butnot030602MVA_he_ZZT_78634Performancemanagement–keyquestions

1.HowcanweovercomethefactthatoftenSixSigmabecomesthedefaultperformancemanagementsystem?

2.Doyouagreewiththethoughtthatleanenhancementsshouldnotbeaddedifthefoundationisweak?

030602MVA_he_ZZT_78634Performa030602MVA_he_ZZT_78635McKinseycangetinvolvedinmultipleactivitiesinthejourneyDevelopatailoredapproachfortheclientbuildinguponthefivestepprocessoutlinedhereConducttheprogramreadinessdiagnosticDeveloptheoverallprogramarchitectureandrolloutplanDesigntheappropriateKPIcascadetodeliverresultsAssistininitialvaluestreammappingtoaidinprojectselectionandprioritizationDevelopthecapabilitybuildingplanandmaterialstoconductinitialtrainingProvideleanexpertiseasnecessaryParticipateinrolloutasmutuallyagreed030602MVA_he_ZZT_78635McKinsey030602MVA_he_ZZT_78636McKinseyinvolvement–keyquestions

1.Doyouseethistopicandtheoverallapproachasbeingrelevanttoyourclients?

2.WherecanMcKinseyaddgreatestvalueinthisjourney?

030602MVA_he_ZZT_78636McKinsey030602MVA_he_ZZT_78637Out(erstl?schenwenndermasterfertigist!!!)

* Footnote Quelle: SourcesSUBTITLE(IFTHEREISAMESSAGETITLEONLY)030602MVA_he_ZZT_78637Out * F030602MVA_he_ZZT_78638Problemsolvingmethodology,concepts,andtoolsLSL –LowerSpecLimitUSL –UpperSpecLimitExample–schoolbusarrivaltimesCommoncauseandspecialcausevariationUCL=07:43LCL=07:07Mean=07:25ArrivaltimeWhydoweseethesevariations?Howshouldwedealwiththem?Actions?030602MVA_he_ZZT_78638Problem030602MVA_he_ZZT_78639Problemsolvingmethodology,concepts,andtoolsLSL –LowerSpecLimitUSL –UpperSpecLimitVoiceofthecustomerandvoiceoftheprocessVoiceofprocess"Whattheprocesscandeliver"CustomerManpower(people)Voiceofthecustomer"Whatthecustomerwants"MeasurementMaterialMachineMothernature(environment)Method0246810121416182022Numberofreturns

per1,000shipmentsX030602MVA_he_ZZT_78639Problem030602MVA_he_ZZT_78640Problemsolvingmethodology,concepts,andtoolsLSL –LowerSpecLimitUSL –UpperSpecLimitProcesscapabilitiesandsigmalevelsThecapabilityindexCpkquantifiesthegap

betweenVOCandVOPSpecification

limit(USL)Specification

limit(LSL)f(x)x030602MVA_he_ZZT_78640Problem030602MVA_he_ZZT_78641Problemsolvingmethodology,concepts,andtoolsLSL –LowerSpecLimitUSL –UpperSpecLimit030602MVA_he_ZZT_78641Problem030602MVA_he_ZZT_78642Problemsolvingmethodology,concepts,andtoolsLSL –LowerSpecLimitUSL –UpperSpecLimit030602MVA_he_ZZT_786

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