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6 Sigma Project - 2014

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Salman Khan

The document discusses Six Sigma "Kaizen" workouts and provides guidance on executing Kaizen projects. Some key points: - Kaizen is a philosophy focused on gradual, continuous improvement through problem-solving. - Kaizen workouts engage employees to identify improvement ideas. They have helped companies like GE and Toyota save millions. - Workouts focus on "low-hanging fruit" - obvious, frequent issues that can quickly impact goals. They require less data and more discussion than typical Six Sigma projects. - The document provides templates and guidelines for conducting workouts, including identifying problems, data collection, solution generation, and implementation planning. It also discusses facilitating workouts and selecting high-priority topics.

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2/10/2011 1 Six Sigma “Kaizen” Work-Out Simple & Powerful Usman Mazhar Marketing Division EFERT ‘ 2011 Corporate Objectives, 2011 • Rs. 35 million savings target • Training 1BB, 2GB and 4YB training waves • Train new Marketing resources on Six Sigma • Focused saving drive with “Kaizen Workouts”
2/10/2011 2 Six Sigma Project Types KAIZEN What is Kaizen? Kaizen is a philosophy focused on problem-solving to achieve gradual, orderly, and continuous improvement throughout all of the elements of a supply chain process. Kaizen is made up of two Japanese words: meaning "change" meaning "for the better" or "good"
2/10/2011 3 Power of Kaizen Work-Out Workout tools were largely credited as a critical accelerator of GE's Six Sigma effort Evaluating Work-Out, former GE CEO Jack Welch observed, "Trust the people in the organization - the people in the best position to improve a business are the people in the job every day." Work-Out engages the best thinking of those in the organization who are closest to the processes, who "live them" daily and who invariably have a lot of ideas for improvement. Kaizen Work-Out, Benefits and Impact Marketing Division reported Rs 1.4 Million from 5 Work-Outs in 2010 Manufacturing Division has reported Savings as High as Rs 15 Million, from Wok-Outs Marketing Targeting at least Rs 05 Million through Work Outs inn 2011 IMC Global attributes more than $3.5 Million in savings through Work Outs GE, General Motors, Toyota has saved Millions through Work Outs Zurich Financial Services UK has reported $100 Million in savings through Work Outs
2/10/2011 4 Focus on Low Hanging Fruit! Work-Out Green Belt Black Belt Focus on clearing the Low-hanging fruits, making way for larger and complicated Projects Obvious, frequent and Immediate Action issues Simple yet Impactful A Workout requires less Data Analysis and more Discussion and qualitative deliberation. Workout typically relies for much of its power on precisely the group of employees who have received limited exposure to Six Sigma tools and concepts. $ Easy Benefits Kaizen Work-Out Philosophy Speed to Action Simplicity of Tools & Greater Impact Accelerating Change through Empowermen t Continuous Improvemen t “KAIZEN” Engagement throughout the Organization Linked to Immediate Strategic Priorities
2/10/2011 5 Work-Out Execution Phases (1-5 days) Identify Problem Challenge & Goal Statement Data Collection & Initial Analaysis Process Mapping Root Cause Analysis Solution Generation & Action Plan Results, Decision & Implementation Work-Out Tools • Process Mapping • Fishbone Analysis - C,N,X • Pareto Principle • 5 Whys • Affinity Diagram • Poka Yoke • Visual Management • 5S • Anti-solution • Brainstorming • 7 Wastes Work-Out Presentation Structure • Challenge & Goal Statement • Expected Financial Benefits & KPI Improvement • Team Members, Facilitator and Decision Maker (Owner) • CTQs – what will not be compromised • Scope • Process Mapping • Root Cause Analysis • Critical factors and Proposed Solution • Action Plan • Financial Impact • Solution Implementation, Support and Sustainability Above should be covered, Any other section or analysis can be included as per the Work Out
2/10/2011 6 Work-Out Decision Making • Criteria to Select High Priority Topics ▫ Needs attention ▫ Has high customer value ▫ Is cross functional ▫ Impacts external customer ▫ Can provide a quick win Choosing a Work-Out
2/10/2011 7 The Pay Off Matrix 01 Best Work Out Award will be given out! Where would you like to put your effort? Facilitation Facilitation is the reasoned and intended intervention, on the part of the facilitator, into the ongoing events and dynamics of a group with the purpose of helping that group attain its stated end more effectively. Slide taken from GEM International Training
2/10/2011 8 Facilitation Tools Facilitation tools can be categorized into the following areas: • Problem solving tools • Idea generation tools • Decision making tools • Prioritization tools • Action planning tools Slide taken from GEM International Training Facilitation Tools Problem Solving Tools • Cause and Effect Analysis • Process Mapping Idea Generation Tools • Brainstorming • Storyboarding (affinity diagramming) • Nominal Group Technique Decision Making Tools • Voting • Multivoting • Ranking • Delegation • Negotiation • Consensus Prioritization Tools • Implementation /Pay Off Matrix • Circle of Control/Circle of Influence Action Planning Tools • Force Field Analysis • Contingency Diagram Slide taken from GEM International Training
2/10/2011 9 Preventions/Interventions High Low Options for Dealing with Disruptive Behaviors Ignore or Avoid Make Eye Contact Walk Half Way Walk by Them, Make Eye Contact Inquire, “What do you think?” Reflect or “name it” (“You seem distracted.”) Address Directly on a Break Address Before the Entire Group Dealing with Disruptive Behaviors Slide taken from GEM International Training Managing Conflicting Modes Uncooperative Cooperative Cooperativeness Satisfy others concerns Unassertive Satisfy own concerns Assertiveness Competing Avoiding Compromising Collaborating Accommodating Slide taken from GEM International Training
2/10/2011 10 Compromising Moderate in both assertiveness and cooperativeness • The goal is to “find a middle ground.” • Finding a middle ground or forgoing some of your concerns in order to have others met. • It can mean negotiating or splitting the difference. Potential negative consequences of Compromising: • Not accomplishing critical tasks/objectives • Lack of credibility • Lose Big Picture / Long Term Goals Slide taken from GEM International Training Collaborating High assertiveness and high cooperativeness • The goal is to find a “win-win solution.” • When you are concerned with fully satisfying both sides of an issue. • It is working with the other person to find an optimal solution. Potential negative consequences of Collaborating: • Too much time spent on an insignificant issue • Ineffective decisions made from input from people unfamiliar with the situation • Unfounded assumptions about trust Slide taken from GEM International Training
2/10/2011 11 Facilitator Behavior – Managing Conflicts • Listen actively to points being made. • Ask for concerns. • Stay neutral. Paraphrase key ideas whether you agree or not. • Make sure the divergent opinion is heard and understood by the rest of the group. Get others to paraphrase the main idea. • Thank the person for their input/validate them. • Make decisions quickly, ask the group to decide on what ought to be considered. • Keep it objective. Slide taken from GEM International Training Marketing Kaizen Work-Outs • Marketing Strategy’ 2011  Emphasis is on off season sales  Emphasis will be on Cost Efficiencies • Possible Work Outs  Breaking an Institutional Buyer (Sugar Mill, Cotton Ginner,)  Reviving Dead Sales Points  Reviving low performing trucker  Improving Placement Variance within Area/Zone  Improving Crop Conversion for Products  Improving Market Development Processes  Improving Warehousing Processes  Improving Communication and Information flow  Process Efficiencies through removing/reducing Non Value added steps
2/10/2011 12 Six Sigma Work-Out THANK YOU! Use the Power and Simplicity of Work Out to Achieve Higher Results Project Replication 2011 Project Dept Comments Optimizing Product Stock Outs resulting in Sales loss Sales Project to be replicated once the replication session for the Zone AMMs has been arranged - for now to be replicated and reported by Okara, Lahore and Sahiwal Area - to be reported in terms of percentage reduction in product stock outs and/or quantity of product utilized from Safety/Buffer Stock Rationalization of Dealer Network, improving percentage of Ineffective Dealers Sales Project to be replicated once the replication session for the Zone AMMs has been arranged - for now to be replicated and reported by Daharki and Hyderabad Zones (South Sales Dept) - to be reported in terms of percentage of ineffective dealers improved and incremental MT sales generated throught the Project Conversion of Non Engro Users through MD Activities Sales Project replication to continue as done in 2010, benefits to be first verified by MDA South, SMDO North or MDO Multan for respective Zones and then reported in monthly update - Monthly update in terms of Number of Bags sold plus back up data for Non Engro users plus conversion percentage of Non Engro user acreage
2/10/2011 13 Project Replication 2011 Project Title Leader Comments 1 Sales Optimization through Institutional Buyers AZD Project SOP to be shared with all team members, project to be replicated - replication status to be reported in monthly updates 2 Reducing PER/ROSP cycle time NBA Project SOP to be shared with all team members, project to be replicated after go ahead from Distribution - replication status to be reported in monthly updates in terms of numbers of days taken for approval of PER/ROSP 3 New Dealer appointment through structured decision making DTW Project SOP to be shared with all team members, project to be replicated - replication status to be reported in monthly updates 4 POL optimization for Zarkhez Sales in Quetta Area (MT/Ltr) ABC Project SOP to be shared with all team members, project to be replicated if required in the Area - replication status to be reported in monthly updates - team members should be at least knowledgable of the SOP 5 Efficient use of loose product at field warehouses SRC Project SOP to be shared with all team members, project to be replicated - replication status to be reported in monthly updates in terms of quantity of loose product utilized in Kg 6 Reducing TAR collection period in Quetta Area ABC Project SOP to be shared with all team members, project to be replicated if required in the Area - replication status to be reported in monthly updates - team members should be at least knowledgable of the SOP 7 Improving the declining Achievement versus Sales Plan of Zingro in Okara Area MSM Project SOP to be shared with all team members, project to be replicated if required in the Area and if similar issue of declining sales is faced - replication status to be reported in monthly updates - team members should be at least knowledgable of the SOP - if used then update to be given in terms of MT of incremental sales 8 Reduction of Paper Consumption in Zonal Office (2009 Project) MTSK Project SOP to be shared with all team members, project to be replicated in all Zonal Offices - replication status to be reported in monthly updates in terms of Paper utilized and Paper saved - All Zonal Coordinators expected to be knowledgable of the SOP 9 Rejuvenation of Zarkhez Green Sales for Potato Crop in Sahiwal Area ASd Project SOP to be shared with all team members, project to be replicated if required in the Area and if similar issue of declining sales is faced - replication status to be reported in monthly updates - team members should be at least knowledgable of the SOP - if used then update to be given in terms of MT of incremental sales 10 Standardization of Warehouse Acquiring Process MIQ Project SOP to be shared with all team members, project to be replicated for assistance on Area level Management - replication status to be reported in monthly updates Project Replication 2011 Project Title Leader Comments 1 Improving Zingro Sales through untapped Distributor medium of Pesticides Dealers MJAK Project SOP to be shared with all team members, project to be replicated if required in the Area and if similar issue of declining sales is faced - replication status to be reported in monthly updates - team members should be at least knowledgable of the SOP - if used then update to be given in terms of MT of incremental sales 2 Improving Zarkhez Sales to Non Engro Users of Citrus MJAK Project SOP to be shared with all team members, project to be replicated if required in the Area and if similar issue of declining sales is faced - replication status to be reported in monthly updates - team members should be at least knowledgable of the SOP - if used then update to be given in terms of MT of incremental sales 3 Improving Zarkhez Sales using SMS Technology AMd Project SOP to be shared with all team members, project to be replicated in all Areas - replication status to be reported in monthly updates in terms of incremental bags sold through this methodology 4 Rationalization of WH capacity on Area level NIt Project SOP to be shared with all team members, project to be replicated if required in the Area for assistance - replication status to be reported in monthly updates - team members should be at least knowledgable of the SOP 5 Reducing Errors on Financial Instruments ASd Project SOP to be shared with all team members, project to be replicated in all Areas as and when required - replication status to be reported in monthly updates
2/10/2011 14 Thank you

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6 Sigma Project - 2014

  • 1. 2/10/2011 1 Six Sigma “Kaizen” Work-Out Simple & Powerful Usman Mazhar Marketing Division EFERT ‘ 2011 Corporate Objectives, 2011 • Rs. 35 million savings target • Training 1BB, 2GB and 4YB training waves • Train new Marketing resources on Six Sigma • Focused saving drive with “Kaizen Workouts”
  • 2. 2/10/2011 2 Six Sigma Project Types KAIZEN What is Kaizen? Kaizen is a philosophy focused on problem-solving to achieve gradual, orderly, and continuous improvement throughout all of the elements of a supply chain process. Kaizen is made up of two Japanese words: meaning "change" meaning "for the better" or "good"
  • 3. 2/10/2011 3 Power of Kaizen Work-Out Workout tools were largely credited as a critical accelerator of GE's Six Sigma effort Evaluating Work-Out, former GE CEO Jack Welch observed, "Trust the people in the organization - the people in the best position to improve a business are the people in the job every day." Work-Out engages the best thinking of those in the organization who are closest to the processes, who "live them" daily and who invariably have a lot of ideas for improvement. Kaizen Work-Out, Benefits and Impact Marketing Division reported Rs 1.4 Million from 5 Work-Outs in 2010 Manufacturing Division has reported Savings as High as Rs 15 Million, from Wok-Outs Marketing Targeting at least Rs 05 Million through Work Outs inn 2011 IMC Global attributes more than $3.5 Million in savings through Work Outs GE, General Motors, Toyota has saved Millions through Work Outs Zurich Financial Services UK has reported $100 Million in savings through Work Outs
  • 4. 2/10/2011 4 Focus on Low Hanging Fruit! Work-Out Green Belt Black Belt Focus on clearing the Low-hanging fruits, making way for larger and complicated Projects Obvious, frequent and Immediate Action issues Simple yet Impactful A Workout requires less Data Analysis and more Discussion and qualitative deliberation. Workout typically relies for much of its power on precisely the group of employees who have received limited exposure to Six Sigma tools and concepts. $ Easy Benefits Kaizen Work-Out Philosophy Speed to Action Simplicity of Tools & Greater Impact Accelerating Change through Empowermen t Continuous Improvemen t “KAIZEN” Engagement throughout the Organization Linked to Immediate Strategic Priorities
  • 5. 2/10/2011 5 Work-Out Execution Phases (1-5 days) Identify Problem Challenge & Goal Statement Data Collection & Initial Analaysis Process Mapping Root Cause Analysis Solution Generation & Action Plan Results, Decision & Implementation Work-Out Tools • Process Mapping • Fishbone Analysis - C,N,X • Pareto Principle • 5 Whys • Affinity Diagram • Poka Yoke • Visual Management • 5S • Anti-solution • Brainstorming • 7 Wastes Work-Out Presentation Structure • Challenge & Goal Statement • Expected Financial Benefits & KPI Improvement • Team Members, Facilitator and Decision Maker (Owner) • CTQs – what will not be compromised • Scope • Process Mapping • Root Cause Analysis • Critical factors and Proposed Solution • Action Plan • Financial Impact • Solution Implementation, Support and Sustainability Above should be covered, Any other section or analysis can be included as per the Work Out
  • 6. 2/10/2011 6 Work-Out Decision Making • Criteria to Select High Priority Topics ▫ Needs attention ▫ Has high customer value ▫ Is cross functional ▫ Impacts external customer ▫ Can provide a quick win Choosing a Work-Out
  • 7. 2/10/2011 7 The Pay Off Matrix 01 Best Work Out Award will be given out! Where would you like to put your effort? Facilitation Facilitation is the reasoned and intended intervention, on the part of the facilitator, into the ongoing events and dynamics of a group with the purpose of helping that group attain its stated end more effectively. Slide taken from GEM International Training
  • 8. 2/10/2011 8 Facilitation Tools Facilitation tools can be categorized into the following areas: • Problem solving tools • Idea generation tools • Decision making tools • Prioritization tools • Action planning tools Slide taken from GEM International Training Facilitation Tools Problem Solving Tools • Cause and Effect Analysis • Process Mapping Idea Generation Tools • Brainstorming • Storyboarding (affinity diagramming) • Nominal Group Technique Decision Making Tools • Voting • Multivoting • Ranking • Delegation • Negotiation • Consensus Prioritization Tools • Implementation /Pay Off Matrix • Circle of Control/Circle of Influence Action Planning Tools • Force Field Analysis • Contingency Diagram Slide taken from GEM International Training
  • 9. 2/10/2011 9 Preventions/Interventions High Low Options for Dealing with Disruptive Behaviors Ignore or Avoid Make Eye Contact Walk Half Way Walk by Them, Make Eye Contact Inquire, “What do you think?” Reflect or “name it” (“You seem distracted.”) Address Directly on a Break Address Before the Entire Group Dealing with Disruptive Behaviors Slide taken from GEM International Training Managing Conflicting Modes Uncooperative Cooperative Cooperativeness Satisfy others concerns Unassertive Satisfy own concerns Assertiveness Competing Avoiding Compromising Collaborating Accommodating Slide taken from GEM International Training
  • 10. 2/10/2011 10 Compromising Moderate in both assertiveness and cooperativeness • The goal is to “find a middle ground.” • Finding a middle ground or forgoing some of your concerns in order to have others met. • It can mean negotiating or splitting the difference. Potential negative consequences of Compromising: • Not accomplishing critical tasks/objectives • Lack of credibility • Lose Big Picture / Long Term Goals Slide taken from GEM International Training Collaborating High assertiveness and high cooperativeness • The goal is to find a “win-win solution.” • When you are concerned with fully satisfying both sides of an issue. • It is working with the other person to find an optimal solution. Potential negative consequences of Collaborating: • Too much time spent on an insignificant issue • Ineffective decisions made from input from people unfamiliar with the situation • Unfounded assumptions about trust Slide taken from GEM International Training
  • 11. 2/10/2011 11 Facilitator Behavior – Managing Conflicts • Listen actively to points being made. • Ask for concerns. • Stay neutral. Paraphrase key ideas whether you agree or not. • Make sure the divergent opinion is heard and understood by the rest of the group. Get others to paraphrase the main idea. • Thank the person for their input/validate them. • Make decisions quickly, ask the group to decide on what ought to be considered. • Keep it objective. Slide taken from GEM International Training Marketing Kaizen Work-Outs • Marketing Strategy’ 2011  Emphasis is on off season sales  Emphasis will be on Cost Efficiencies • Possible Work Outs  Breaking an Institutional Buyer (Sugar Mill, Cotton Ginner,)  Reviving Dead Sales Points  Reviving low performing trucker  Improving Placement Variance within Area/Zone  Improving Crop Conversion for Products  Improving Market Development Processes  Improving Warehousing Processes  Improving Communication and Information flow  Process Efficiencies through removing/reducing Non Value added steps
  • 12. 2/10/2011 12 Six Sigma Work-Out THANK YOU! Use the Power and Simplicity of Work Out to Achieve Higher Results Project Replication 2011 Project Dept Comments Optimizing Product Stock Outs resulting in Sales loss Sales Project to be replicated once the replication session for the Zone AMMs has been arranged - for now to be replicated and reported by Okara, Lahore and Sahiwal Area - to be reported in terms of percentage reduction in product stock outs and/or quantity of product utilized from Safety/Buffer Stock Rationalization of Dealer Network, improving percentage of Ineffective Dealers Sales Project to be replicated once the replication session for the Zone AMMs has been arranged - for now to be replicated and reported by Daharki and Hyderabad Zones (South Sales Dept) - to be reported in terms of percentage of ineffective dealers improved and incremental MT sales generated throught the Project Conversion of Non Engro Users through MD Activities Sales Project replication to continue as done in 2010, benefits to be first verified by MDA South, SMDO North or MDO Multan for respective Zones and then reported in monthly update - Monthly update in terms of Number of Bags sold plus back up data for Non Engro users plus conversion percentage of Non Engro user acreage
  • 13. 2/10/2011 13 Project Replication 2011 Project Title Leader Comments 1 Sales Optimization through Institutional Buyers AZD Project SOP to be shared with all team members, project to be replicated - replication status to be reported in monthly updates 2 Reducing PER/ROSP cycle time NBA Project SOP to be shared with all team members, project to be replicated after go ahead from Distribution - replication status to be reported in monthly updates in terms of numbers of days taken for approval of PER/ROSP 3 New Dealer appointment through structured decision making DTW Project SOP to be shared with all team members, project to be replicated - replication status to be reported in monthly updates 4 POL optimization for Zarkhez Sales in Quetta Area (MT/Ltr) ABC Project SOP to be shared with all team members, project to be replicated if required in the Area - replication status to be reported in monthly updates - team members should be at least knowledgable of the SOP 5 Efficient use of loose product at field warehouses SRC Project SOP to be shared with all team members, project to be replicated - replication status to be reported in monthly updates in terms of quantity of loose product utilized in Kg 6 Reducing TAR collection period in Quetta Area ABC Project SOP to be shared with all team members, project to be replicated if required in the Area - replication status to be reported in monthly updates - team members should be at least knowledgable of the SOP 7 Improving the declining Achievement versus Sales Plan of Zingro in Okara Area MSM Project SOP to be shared with all team members, project to be replicated if required in the Area and if similar issue of declining sales is faced - replication status to be reported in monthly updates - team members should be at least knowledgable of the SOP - if used then update to be given in terms of MT of incremental sales 8 Reduction of Paper Consumption in Zonal Office (2009 Project) MTSK Project SOP to be shared with all team members, project to be replicated in all Zonal Offices - replication status to be reported in monthly updates in terms of Paper utilized and Paper saved - All Zonal Coordinators expected to be knowledgable of the SOP 9 Rejuvenation of Zarkhez Green Sales for Potato Crop in Sahiwal Area ASd Project SOP to be shared with all team members, project to be replicated if required in the Area and if similar issue of declining sales is faced - replication status to be reported in monthly updates - team members should be at least knowledgable of the SOP - if used then update to be given in terms of MT of incremental sales 10 Standardization of Warehouse Acquiring Process MIQ Project SOP to be shared with all team members, project to be replicated for assistance on Area level Management - replication status to be reported in monthly updates Project Replication 2011 Project Title Leader Comments 1 Improving Zingro Sales through untapped Distributor medium of Pesticides Dealers MJAK Project SOP to be shared with all team members, project to be replicated if required in the Area and if similar issue of declining sales is faced - replication status to be reported in monthly updates - team members should be at least knowledgable of the SOP - if used then update to be given in terms of MT of incremental sales 2 Improving Zarkhez Sales to Non Engro Users of Citrus MJAK Project SOP to be shared with all team members, project to be replicated if required in the Area and if similar issue of declining sales is faced - replication status to be reported in monthly updates - team members should be at least knowledgable of the SOP - if used then update to be given in terms of MT of incremental sales 3 Improving Zarkhez Sales using SMS Technology AMd Project SOP to be shared with all team members, project to be replicated in all Areas - replication status to be reported in monthly updates in terms of incremental bags sold through this methodology 4 Rationalization of WH capacity on Area level NIt Project SOP to be shared with all team members, project to be replicated if required in the Area for assistance - replication status to be reported in monthly updates - team members should be at least knowledgable of the SOP 5 Reducing Errors on Financial Instruments ASd Project SOP to be shared with all team members, project to be replicated in all Areas as and when required - replication status to be reported in monthly updates