QDF 6sigma Forum Sep06

Six Sigma Overview
Quality Discussion Forum September 2006
Peter Dodge Six Sigma Core Team
Page 1
Quality Discussion Forum Agilent Restricted September 2006
Agenda
Opening comments/introductions (Ed)
Summary of the Six Sigma Model (Peter)

Relationship of Six Sigma and Business Management Systems (Peter) Agilents Deployment (Peter) Results/Lessons Learned (Peter) Questions/Comments (Peter) Wrap Up/Adjourn (Ed)
Page 2
Acknowledgements
Materials for this presentation have been provided by:
Six Sigma is a registered trademark and service mark of Motorola.
Page 3
The Keys to Successful Business Improvement:

Six Sigma principles of top down deployment. Integrated approach to leading improvement efforts. Driving results through engaged teams. Six Sigma analytic tools and a disciplined, standardized methodology for their use.
Its all about delivering business results. Achieving sustainable business improvement requires integrated team efforts linked to business priorities.
Page 4
The Six Sigma Maturity Model
Management System Methodology Metric

Managing process variation Monitoring KPIs Driving continuous improvement Team based problem solving Consistent use of DMAIC model Trained resources working in projects Project selection and prioritization process Six Sigma drives strategy execution Leadership sponsorship and review Metrics driven governance process Engagement across the organization
Page 5
Six Sigma as a Management System

ISO9000 Quality Mgmt Principles
Customer Focus
Leadership Involvement of People Process Approach
Six Sigmas Parallels

VOC & Critical to Quality Rqmts
Group and Project Champions White, Green, & Black Belts DMAIC, DMADV
System Approach to Management

Continual Improvement Factual approach to decision making Mutually beneficial supplier relationships
Governance
Breakthrough projects Robust statistical and financial analyses Joint Agilent-supplier projects as part of our Six Sigma Roadmap
Page 6
Six Sigma as a Management System
Y
Scorecard Goals
(1x1 , 10x2 , 2x3 ... )

Which activities will enable you to achieve the Goals?
Six Sigma Project Selection
On-going Sponsorship and Review

Page 7 Quality Discussion Forum Agilent Restricted September 2006
Example: Translating Strategic Objectives Into Critical Six Sigma Projects at LSCA
Big Ys
(FY 06 Priorities)
Customer: Create Loyal Customers

Customer relationship program Customer contact experience Business processes Customer Satisfaction: 8.2 Customer Loyalty: Industry-leading Product Supportability Warranty Conversions Customer Issue Resolution System
Financial: Capture the Value

IBS profitability Sources of value of SiG, CBC and SSI acquisitions >17% OP >30% ROIC
Employees: Engage to Win

Employee engagement with customers Employee feedback on Sr. leaders 70% favorable on customer-centricity Top quartile 80% favorable on accountability 6S Champion, BB and GB training 6S Executive Training
Markets: Focus to Win

New business growth for High-end LC/MS, Genomics, and LRM Core business share gains Market share: 23% (+1%)
Little ys
w/ metrics
Vital X Projects
(= Six Sigma Projects)
Gold Quad Scrap GC Column Scrap Service Inventory Mgmt Eagle Quad Process Improvement SOX Process Improvement 3rd Party Sales
Custom Microarrays Made Easy EMEA Demand Generation
Page 8
DMAIC The Process Improvement Roadmap
Define Opportunities
1.0
Measure Performance
2.0
Analyze Opportunity
3.0
Improve Performance
4.0
Control Performance
5.0
How are What is important? we doing?
What is wrong?
What needs to be done?
How do we guarantee performance?
Page 9
DMAIC Deployed - The Actual Project Lifecycle

Where can we extend the gains?
Leverage Improvement
Define Opportunit ies
1.0
Measure Performan ce
2.0
Analyze Opportunit y
3.0
Improve Performan ce
4.0
Control Performan ce
5.0
6.0
Monitor
How do we assure our ROI?

Page 10 Quality Discussion Forum Agilent Restricted September 2006
Meeting Customer and Business Objectives
Project Objectives
CCRs
________ ________ ________
Customer Issues
________ ________ ________
VOC
________ ________ ________
CTQs
________ ________
_________
_________
_________
________ ________
VOB
Business Issues ________

________
________ ________
CBRs
CTPs
________ ________
VOB - Voice of the Business CBR - Critical Business Requirements CTP - Critical to the Process
VOC - Voice of the Customer CCR - Critical Customer Requirements CTQ - Critical to Quality
Page 11
Agilent Technologies Six Sigma Deployment
Six Sigma is a registered trademark and service mark of Motorola.

Page 12
What Six Sigma is to Me
A fundamental management process where we have a systematic approach to solving problems.
Page 13
Interaction: Customer Satisfaction
Excellent!
Technology Leadership
Customer Intimacy
Todays Profile
Good
Operational Excellence
Page 14
Agilents FY05 Results

~ 90 Projects Across GIO functions and business groups Financial Benefits: $1.2 M Hard $ $8.3M Soft $
~ 15%
Other process improvements
~ 50% ~ 35%
Cost / inventory / supplier reductions and yield improvements Customer, Quality or New Product Introductions
Page 15
Agilents Six Sigma Roadmap:

Enabling a fundamental management process that anticipates and meets customers needs, and provides a data driven approach to solving problems.
Launch
Establish vision Develop Launch Plan Select external provider Develop 1st wave Black Belts & Champions
Manage
Establish management metrics and governance process Align project selection with businesses strategic direction
Sustain & Grow

Introduce Design for Six Sigma (DFSS), Lean concepts Extend projects internally and externally (with customers and suppliers) Extend skills development for Belts and Champions Standardize quarterly management reviews at business/corporate levels
The way we work

Anticipate customer needs, fueling growth Assure Six Sigma is a core competency in the management system Integrate Six Sigma into the SPR process Following our success, suppliers implement Six Sigma Implement Six Sigma as a key methodology for achieving results for our shareholders, customers and employees
Establish financial benefits guidelines

Introduce White Belts Complete first and second Black Belt projects Introduce Green Belts
Implement project tracking system

Enable learning organization via Belt and Champion Forums Establish formal recruitment and career progression for GBs, BBs & MBBs
FY05 FY06
FY06 - FY07
FY07 - FY08
FY09 & beyond
Format adapted from: Leading Six Sigma by Snee & Hoerl (2003)
Version: Sept 8, 2006

Page 16
How were doing it

Program details
FY05 & 06
51 Black Belts FY05 20
Black Belt Candidates FY06
207 Green Belts FY06
AMERICAS
8 21
EUROPE
4
16 50 42
ASIA
8 14
162 Champions
72 81
63 39
37
FY07
Black Belt Candidates FY06
235 Green Belts FY06 60 Champions
As of August 31, 2006 9,734 Certified White Belts at Agilent
November - December: Champion training
December - May: Black Belt training December - May: Green Belt training
FY07 Schedule
Page 17
What Have We Learned?

Things to Avoid
Big Bang Projects

Belt Factories Keeping score via project count Working the Trivial Many Try Harder Improvements
AVOID AVOID AVOID AVOID AVOID AVOID
Page 18
What Did We Learn?

Things to Copy Dedicated resources: Champions and Belts Focused projects achievable in 3 - 6 months Apply Six Sigma methodology to all functions and departments Build organizational competence Fully engaged senior management Focus on the methodology and establishing rigor
COPY COPY COPY COPY COPY COPY
Page 19
How does a Business ensure success?

1. Be familiar with expectations and responsibilities. 2. Governance!
Its the method of translating the Champions responsibilities into action
Its ACTIVE management to ensure Six Sigma goals and objectives are achieved.
This means monitoring and advancing:
Black Belt and Green Belt projects
Financial benefits
Leadership behaviors that create the desired change Desired culture
Page 20
Roles & Responsibilities

- Primary responsibility
CATEGORY LEVEL JUMP START Executive Leadership Team CEO Direct Repor ts Sr. Manager DEFINE MAIC PROJECT REVIEW MGMT. RVW LEVERAGE / MONITOR
Senior Sponsor, Group Champion
Project Champion Black Belt
Int. Manager Mgr / Prof Staff
Financial Analyst
Prof Staff
Green Belt
Mgr / Prof Staff
Page 21
Six Sigma GIO & Business Champions

Agilent Technologies
Customer & Quality Jani Thompson General Counsel Pat Barrett Human Resources TBD Finance & Administration Anne Myong Corporate Finance Anne Myong Information Technology Rich Kellen ATI Venky Valluri Global Sourcing Anagha Kale Workplace Services TBD Electronic Measurement Electronic Measurements Group John Herniman Bio-Analytical Measurement Life Sciences and Chemical Analysis Keith Price
What is a GIO & Business Champion

Provide focus, leadership and commitment. Influence peers in the application of Six Sigma. Fight for cause of Black Belts & remove barriers.
NDS TBD WBU John Prouty EIBU Aznul Shahrim WWFO Roberta Lycette WCSS
Martin Wisser
CASU Nancy Adams LSSU Renee Olson CSSD Neil Noronha SSD Mary Pat Knauss WWOF Kristin Giffin WWSMS Diana Fandel
Director of Agilent Labs
Agilent Laboratories Martin Neil

Quality Discussion Forum
Revision Date: 7 September 2006 Agilent Restricted

Page 22 September 2006
Agilents Six Sigma Resources

Core Team Jani Thompson, Director Peter Dodge, Program Manager
Paul Renfrew, Education & eRoom support

Chris Grantz-Carter, EMG Program Manager Vickie Eckert, LSCA Program Manager Websites, Tools & Training Materials
Agilent Six Sigma: http://sixsigma.quality.agilent.com/index.asp EMG Six Sigma: http://emg.communications.agilent.com/quality/education/sixsigma.asp LSCA Six Sigma: http://lsca-quality.business.agilent.com/six_sigma/index.asp EMG Financial Calculation Template (FaCTS) Training slides & EMG Financial Calculation Template (FaCTS)
Page 23
To ask questions:
Q&A
1. By phone Press #5 to un-mute your phone. or 2. By Webex Send Chat: a) Publicly to All, or b) Privately to either Host or Presenter
Page 24

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Six Sigma Overview

Quality Discussion Forum September 2006

Peter Dodge Six Sigma Core Team

Quality Discussion Forum Agilent Restricted September 2006

Summary of the Six Sigma Model (Peter)

Quality Discussion Forum Agilent Restricted September 2006

Six Sigma is a registered trademark and service mark of Motorola.

Quality Discussion Forum Agilent Restricted September 2006

The Keys to Successful Business Improvement:

The Six Sigma Maturity Model

Management System Methodology Metric

Quality Discussion Forum Agilent Restricted September 2006

Six Sigma as a Management System

Six Sigmas Parallels

System Approach to Management

Quality Discussion Forum Agilent Restricted September 2006

Six Sigma as a Management System

(1x1 , 10x2 , 2x3 ... )

On-going Sponsorship and Review

Customer: Create Loyal Customers

Financial: Capture the Value

Employees: Engage to Win

Markets: Focus to Win

Custom Microarrays Made Easy EMEA Demand Generation

Quality Discussion Forum Agilent Restricted September 2006

DMAIC The Process Improvement Roadmap

How are What is important? we doing?

What needs to be done?

How do we guarantee performance?

Quality Discussion Forum Agilent Restricted September 2006

DMAIC Deployed - The Actual Project Lifecycle

Define Opportunit ies

How do we assure our ROI?

Meeting Customer and Business Objectives

Business Issues ________

Quality Discussion Forum Agilent Restricted September 2006

Agilent Technologies Six Sigma Deployment

Six Sigma is a registered trademark and service mark of Motorola.

What Six Sigma is to Me

A fundamental management process where we have a systematic approach to solving problems.

Quality Discussion Forum Agilent Restricted September 2006

Interaction: Customer Satisfaction

Quality Discussion Forum Agilent Restricted September 2006

Agilents FY05 Results

Quality Discussion Forum Agilent Restricted September 2006

Agilents Six Sigma Roadmap:

Sustain & Grow

The way we work

Establish financial benefits guidelines

Implement project tracking system

FY09 & beyond

Version: Sept 8, 2006

Quality Discussion Forum Agilent Restricted September 2006

How were doing it

207 Green Belts FY06

235 Green Belts FY06 60 Champions

As of August 31, 2006 9,734 Certified White Belts at Agilent

November - December: Champion training

What Have We Learned?

Big Bang Projects