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I mproving Your Business Results

Six Sigma
Qualtec
Six Sigma Qualtec All Rights Reserved
Deployment Approach
From
Initialization to Self Sufficiency


I mproving Your Business Results
Six Sigma
Qualtec
Six Sigma Qualtec All Rights Reserved
Six Sigma Described
Quantification and Categorization of Deployment Results
Fundamentals of Initialization and Infrastructure
Development
Process Management and Six Sigma
The Path to Self Sufficiency
Agenda Overview
I mproving Your Business Results
Six Sigma
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It is the philosophy of breakthrough level
improvements, that every process can and should
be repeatedly evaluated and significantly improved
In terms of time required, resources used, quality
performance, costs and other aspects relevant to the
process.
All leading to increased customer satisfaction, market
share, revenue, profits, and ultimately shareholder value.



Six Sigma Described
I mproving Your Business Results
Six Sigma
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It is an enterprise wide strategy that effectively
develops a capability and a desire within
individuals to:
To effectively manage process activities and
performance
To solve business and quality problems
To improve decision-making
To improve the overall performance of the enterprise


Six Sigma Described
I mproving Your Business Results
Six Sigma
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Management
System
Methodology
Metrics and
Goals
Tools
+ + +
A group of interactive and dependent activities which
operate synchronously and in control to repeatedly achieve an
expected result with little or no Management intervention required
System
An enterprise wide strategy that
recognizes problematic areas of the business, defines
improvement efforts and projects, determines and implements
data driven breakthrough level solutions..in a predictable and
repeatable manner to improve business results
Six Sigma System
Six Sigma Described
Six Sigma is the way you run your business. It is not just about quality, it is a business &
process management system, and one of the many outputs is improved quality.
I mproving Your Business Results
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Qualtec
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RESULTS FROM SIX SIGMA
IMPLEMENTATIONS
Inferior
Below
Average
Above
Average
Excellent
T
O
T
A
L

Q
U
A
N
T
I
T
Y

O
F

I
M
P
L
E
M
E
N
T
A
T
I
O
N
S

How Six Sigma is Implemented and Applied Will Determine the Results
Categorization of Results
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Quantification of Results
FACTOR POOR BELOW AVERAGE ABOVE AVERAGE EXCELLENT
Average Level of
Improvement per
Project
Unknown or less than
30%
May be known and 30%
to 40%
Known and 40 % to
60%
Known and greater than
60%
Average Financial
Results per Project
Generally not
quantifiable
Not well defined and
less than an average of
$40K per project
Defined, tracked and
average around $100K
per project
Defined, Tracked and
average greater than
$150K per project
Average Quantity of
Projects per Black
Belt/Year
1 to 2 2 to 3 3 to 4 4 or more
Organizational
Approach/Culture
Change
Little or no impact on
the behavior of the
ogranization
More frequent use of
data, but in isolated
cases
Trend or movement
towards the use of
analytical methods and
data oriented decisions
Six Sigma becomes the
"Way we think and
work"
Multiple Factors Determine the Results Obtained .. Y=f(X)
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Process Management
Initialization
Factors that Influence Results
X
1
= Senior Executive engagement and commitment
X
2
= Up front planning
X
3
= Infrastructure Development
X
4
= Proactive Champions that see the power of Six Sigma
X
5
= Full-time Black Belts from Among the Best
X
6
= Process Management through Green and Yellow Belts
X
7
= Black Belts Project selection that makes an impact on the bottom line of the business
X
8
= Financial evaluation system
X
9
= Metrics and goals linked to corporate strategy for progress tracking
X
10
= Project tracking system to measure progress
Y(results) = f(X)
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Initialization
An enterprise wide effort that recognizes
problematic areas of the business, defines improvement efforts
and projects, determines and implements data driven
breakthrough level solutions..in a predictable and repeatable
manner to improve business results
Six Sigma System
The process of preparing a company
for the development of the necessary infrastructure required
to achieve excellent results from a Six Sigma implementation
and to achieve self-sufficiency
Initialization
The various elements (activities) of a
system that must exist to allow the predictable and
continuous operation of that system to achieve expected
results
Infrastructure
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Initialization - Overall Deployment Planning
1
6
5
4 3 2
7 8
Initial
Launch
Planning
Train Executive
and Top
Management
Team
Define the Six
Sigma
System to be
Implemented
Begin
Implementation
& Infrastructure
Development
Finalize
Launch
Planning
Core Team
Training
Select Core
Team
High Level Implementation Roadmap
Release Six
Sigma
Handbook
and
Guidelines
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Select BBs and
Projects for
Wave 1 BBs
Begin Green
Belt and
Yellow Belt
Training
Implement
Process
Management
12 11 10
9
13
Train
Champions
High Level Implementation Roadmap
Consecutive BB, GB, YB Waves
Master Black Belt Development
Project Tracking & Reporting
14
Apply
Infrastructure
and Support
Systems
Initialization - Overall Deployment Planning
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Operation/Group/Company
Name Address (City, State)
Approximate Annual
Revenue
Total
Organization
Population
Organization
Population
(Exempt)
Revenue Per
Employee
2% NPBIT
Target
2% NPBIT
BB
1% of Total
BB
6% of
Exempt BB
Target
BB
Propulsion Systems 422 Gallimore Dairy
Road, Los Angeles,
CA
$30,000 74 62 $405 $600 1 1 4 2
Propulsion Systems 2500 Talbot Drive,
Auburn Hills, WA
$40,000 33 25 $1,212 $800 1 0 2 2
Propulsion Systems 650 Chesterfield
Road, Sacrmento,
CA
$80,000 427 84 $187 $1,600 3 4 5 4
Propulsion Systems Guadalajara,
Mexico
$60,000 730 47 $82 $1,200 2 7 3 3
SUB TOTAL $300,000 1517 267 $198 $6,000 10 15 16 11
Command Console
Systems
200 Piedmont
Circle, Dallas, Tx
$75,000 443 76 $169 $1,500 3 4 5 4
Command Console
Systems
9138 Randolph Rd
NE, Baltimore, MD
$60,000 387 42 $155 $1,200 2 4 3 3
Command Console
Systems
Singapore $90,000 228 18 $395 $1,800 3 2 1 2
SUB TOTAL $225,000 1058 136 $213 $4,500 8 11 8 9
Integrators 2223 Dove Street,
Detroit, MI
$55,000 228 38 $241 $1,100 2 2 2 2
SUB TOTAL $55,000 228 38 $241 $1,100 2 2 2 2
Pnuematics and Servos 629 Green Valley
Rd, Minneapolis,
MN
$10,000 32 29 $313 $200 0 0 2 1
Pnuematics and Servos 650 Chesterfield
Rd., Sacramento,
CA
$90,000 328 29 $274 $1,800 3 3 2 3
Pnuematics and Servos 215 Drummond St.,
Dallas, TX
$50,000 159 27 $314 $1,000 2 2 2 2
SUB TOTAL $150,000 519 85 $289 $3,000 5 5 5 6
GRAND TOTALS $730,000 3322 526 $220 $14,600 24 33 32 28
Determining the Scope of the Deployment
Initialization - Initial Launch Planning
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Launch Planning
Phase

Key Activities
Executive 1:1 Interviews
Key Implementation Leaders
Selected
Executive Management
Training
Define Year 1 Implementation
Plan
Core Team Selected and
Trained
Rev 1 Six Sigma System
Definition Released
Begin Initialization
Establish Deployment Strategy
Rev 1 Six Sigma Handbook
Develop Communications Plan
Establish Management
Commitment Letter
First Employee
Announcements letter
Budgeting
Establish Performance
Expectations/Goals
Initiate Compensation Plan
Identify Initial Champions
Establish 3 Year Plan

SCHEDULE & TI MI NG
2 to 3 Months
Implementation
Phase
Key Activities
Communications Plan
Executed
Train Champions
Identify First Projects
Train First Waves of BBs
On-Site Support
Infrastructure Completed
Launch Initial GB/YB
Training
Six Sigma Metrics
Established
Measurement & Tracking
Systems Established
Train Functional Mngmnt
BB Certification Process
Established
Champion RefresherTrng
Train Initial MBBs
Begin All Employee
Awareness Training
Six Sigma Handbook Rel 2+
Quarterly Exec Reviews
First Recognition & Rewards
Event
Pilot Customer Engagement
Process
SCHEDULE & TI MI NG
9 to 10 Months
Institutionalizing
Phase
Key Activities
Full Scale GB/YB
Training
Engage Suppliers
Develop Internal Training
Capability
Complete BB & MBB
Training Waves to Full
Quantity
Second Annual Rewards
& Recognition Event
Spot Champion
Revitalization Training
System Refinement &
Improvement
Quarterly Exec Reviews
Full Customer
Engagement
Launch Design for Six
Sigma Training
BB Re-Integration
Planning


SCHEDULE & TI MI NG
12 Months
Sustaining
Phase
Key Activities
Continue GB/YB Training
Complete Design for Six
Sigma Training
Migrate BBs & MBBs
Back into Functional
Roles
Continue Supplier
Deployment
System Refinement &
Improvement
Progress Reviews
Annual Rewards &
Recognition Event
Quality Performance
Improvement








SCHEDULE & TI MI NG
12 Months
Year 1 Year 2 Year 3
Initialization - Initial Launch Planning
I mproving Your Business Results
Six Sigma
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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Propulsion Systems Manufacturing
Pneumatics and Servos Manufacturing
Command Console Systems
Integrators
Sales And Marketing
Customers and Suppliers
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
CY02 CY03 CY04
Design/Development Engineering
Administrative Functions
Initialization - Final Launch Planning
Plan the Deployment Sequence
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W
a
v
e
Step Process/Event
Description
Language Customer Participation SSQI
Participation
Prerequisites Deliverables
0 1 Launch Planning 1 English James Smalley Bill Haas Organization
Structure and
population data
Approximate number of Champions, Black
Belts and Master Black Belts planned by
area for the deployment. Identify core team
in terms of roles, objectives and time
commitments. Establish Rev 1.0 of
Deployment time table
E1 2 Executive Interviews English Executive Management
Team
Don Redinius Read Six Sigma
System Definition
document
Develop Executive level understanding,
through executive one-on-ones, of Six
Sigma Management System, the
breakthrough process, the deployment
process, review management system
definition and address questions and
concerns. Provide prerequisite material
CT1 3 Core Team Training 1 English Six Sigma Leader, Core
Team (principle support
individuals from Finance,
Human Resources,
Communications, IT, Key
Stakeholder Representatives
and Finance
Representatives
Stan Whitman Read Six Sigma
Management
System Definition
document and The
Nature of Six Sigma
Management
Develop mid level understanding of Six
Sigma System and the breakthrough
process, address questions and concerns,
define requirements for successful
deployment, planning and infrastructure
requirements, define roles and
responsibilities of core team mem
CT1 4 Initialization Workshops
# 1A
English Core Team Kevin Benson Core Team training Workshops to customize infrastructure
templates into Takata operating guidelines
and policies (Six Sigma Handbook).
E1 5 Executive Training English Executive Management
Team and Six Sigma Leader
Class Size: TBD
Don Redinius Read The Nature of
Six Sigma
Management.
Prepare leadership team, set corporate level
business and financial goals, establish high
level deployment guidelines and establish
leadership requirements for the success of
Six Sigma.
E1 6 System Definition
release
English Steve Cromwell
Wilkes Robarts
Executive Team
N/A Review and
appropriate
modifications
Finalization and release 1 of Six Sigma
System Definition document signed by total
Executive Team
Duration Planned Dates Location
1 day 17-Apr-02 Frankfurt
3 days TBD Frankfurt
London
Munich
Paris
2 Days 5-7-02
5-8-02
Frankfut
2 Days 5-9-02
5-10-02
London
2 days 6-4-02
6-5-02
Frankfurt
N/A 21-Jun-02 N/A
1 Year Detail Planning for All Needed Events
Initialization - Final Launch Planning
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E
n
g
a
g
e

P
r
o
c
e
s
s

Initialization - Developing Infrastructure
C
o
r
e

T
e
a
m

W
o
r
k
s
h
o
p

1

Infrastructure Development Process Outputs
Consistent
Six Sigma
Deployment
System
Knowledge &
Expertise
Self
Integrating Six
Sigma System
Defined and
Auditable
System
Web Based
Six Sigma
Handbook
Hard Copy
Six Sigma
Handbook
C
o
r
e

T
e
a
m

W
o
r
k
s
h
o
p


Experienced
Facilitation
Clients
Uniqueness
Templates for
Handbook
Best Practices
Six Sigma
System
Requirements
Inputs
Core Team
Training
Infrastructure is Developed by the Companies Support Organizations and
Representatives From Each Major Organization
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Deployment and Launch Planning
Human Resource Guidelines
Finance Guidelines
Information Technology Requirements
Communications
Project Guidelines
Project Tracking and Reporting
Goal and Objective Establishment
Initialization - Infrastructure Elements
Infrastructure Elements Bring Clarity and Certainty to an Organization
Implementing Six Sigma
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HR Guidelines
Competency Models and Selection
Position/Assignment Descriptions
Reporting Relationships
Graduation and Certification Criteria
Career Planning/Development
Titles, Compensation & Retention
Rewards & Recognition
Employee Status Tracking Requirements
Deployment & Launch Planning
Six Sigma Management System Definition
3 Year Long term Plan
Goals and Expectations
Key Participant Selection
Overall Deployment Plan
Detailed Near Term Actions
Initialization Planning
Training Schedules and Logistics
Communications Plan
First All Employee Communications Letter
Overall Communications Strategy
Tactical Plan (Who, What and When)
Message Content as a Function of Time
Integration with Other Initiatives
Frequency of Communication
Method/Mediums of Communication
Definition of Expectations and Effectiveness
Project Guidelines
Recognition and Definition Criteria
Project Type Categorization
Problem Statement and Objectives Criteria
Project Valuation Targets
Project Approval Process
Project Review and Reporting Criteria
Project Completion Requirements
Moving into Realization & Closing Phases
Initialization - Infrastructure Deliverables
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Project Tracking and Reporting
Customization for Financial System
Customization for Organizational Structure
Software User Manuals and Training
Email System Integration
Report Generation
Input Reporting Frequency
Information Technology Support
Intranet Development
Final Report Database
Notebook Configuration and Support
Software Installation Templates
Project Tracking System Development
Backup Procedures

Finance Guidelines
Finance Rep Identification and Training
Project Valuation
Project Forecasting Requirements
Methods of Evaluation
Project Completion
Reporting Frequencies




Goal Establishment
Quantity of MBBs, BBs, GBs & YBs
Rate of Deployment/Training Goals
Quantity of Projects/BB/Year
Financial Expectations per Project
Yearly Financial Contribution
Metrics Goals
Organizational Goals
Initialization - Infrastructure Deliverables
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Process Management
Process Management is a structured approach to aligning and
optimizing how business processes work together to repeatedly
and consistently deliver results/value to a customer

General steps toward process management
Identify core processes, generally 5 to 10 and prioritize for
assessment
Designate Process Owners
Educate the organization in process management principles
and techniques
Assess current end to end process performance and set
operating targets
Use process improvement methods, IE Six Sigma, to improve
performance to targets
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Process Management
Education content for Process Management
Voice of the Customer
Organizational and team effectiveness
Flow charting
Workflow and data modeling (Xs and Ys)
Capability analysis
Measurement systems analysis
Change analysis, solution implementation and change
management
Process monitoring and control
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Level 1
Process A Process B Process C Process D Process E
Mgr A Mgr B Mgr C Mgr D Mgr E
PCS Summary
Manager 1 Manager 2
Senior Management
Owned
PCS Summary
Key Process Map
Enabling Processes
Key Process Map
Core Processes
30 20 10 0
0.3
0.2
0.1
0.0
Sample Number
P
r
o
p
o
r
t
io
n
P Chart for Rate by Group
1
1
1
P=0.02491
UCL=0.03969
LCL=0.01012
1 2 3
15 10 5 Subgroup 0
40
35
30
S
a
m
p
le

M
e
a
n
Mean=34.43
UCL=38.14
LCL=30.72
7
6
5
4
3
2
1
0
S
a
m
p
le

S
t
D
e
v1
S=2.601
UCL=5.433
LCL=0
Xbar/S Chart for Cycle Time
Level 2
Level 3
Middle Management
Owned
Process Owner
and Worker Responsibilities
Manage & supervise their operation
Track & monitor process and results indicators
Assure predictability and stability of the process
Identify potential improvements
Improve the process
Process Owners Use
Process Management to:
Process Management & Improvement
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Q1 P1 P2 P3
P1
P2
P3 Q1
Process Management & Improvement
25 20 15 10 5 Subgroup 0
40
30
20
S
a
m
p
le
M
e
a
n
X=30.10
3.0SL=41.33
-3.0SL=18.86
40
30
20
10
0
S
a
m
p
le
R
a
n
g
e
R=19.47
3.0SL=41.18
-3.0SL=0.000
Q1 Indicator Chart
50 40 30 20 10 0
75
65
55
45
35
25
Sample Number
S
a
m
p
le
C
o
u
n
t
C=50.24
3.0SL=71.50
-3.0SL=28.98
P1 Indicator Chart
25 20 15 10 5 Subgroup 0
250
150
50
S
a
m
p
le
M
e
a
n
X=137.8
3.0SL=220.1
-3.0SL=55.41
300
200
100
0
S
a
m
p
le
R
a
n
g
e
R=142.8
3.0SL=301.9
-3.0SL=0.000
P2 Indicator Chart
30 20 10 0
0.6
0.5
0.4
0.3
0.2
0.1
0.0
Sample Number
P
r
o
p
o
r
tio
n
P=0.2478
3.0SL=0.4224
-3.0SL=0.07312
P3 Indicator Chart
Process Control
new Cycletim
50
40
30
20
10
50 40 30 20 10
70
60
50
40
30
y
x
95% PI
95% CI
Regression
Others
Training
Specs
Equipment
Material
Workload
1 2 2 3 5 10
4.3 8.7 8.7 13.0 21.7 43.5
100.0 95.7 87.0 78.3 65.2 43.5
20
10
0
100
80
60
40
20
0
Defect
Count
Percent
Cum %
P
e
rc
e
n
t
C
o
u
n
t
Pareto Chart for Error Ty
55 45 35 25 15 5
USL LSL
PPMTotal
PPM> USL
PPM< LSL
PPMTotal
PPM> USL
PPM< LSL
PPMTotal
PPM> USL
PPM< LSL
Ppk
PPL
PPU
Pp
Cpm
Cpk
CPL
CPU
Cp
StDev (LT)
StDev (ST)
Sample N
Mean
LSL
Target
USL
305469.62
273583.66
31885.96
310027.89
276303.34
33724.55
304000.00
248000.00
56000.00
0.20
0.62
0.20
0.41
*
0.20
0.61
0.20
0.40
8.14405
8.25584
125
30.0972
15.0000
*
35.0000
Expected LT Perf ormance Expected ST Perf ormance Observed Perf ormance Overall (LT) Capability
Potential (ST) Capability
Process Data
ST
LT
Measure
Analyze
Improve
Design of Experiment
And/Or
Solution Determination
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
0.2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Control
#
Process
Function
(Step)
Potential
Failure Modes
(process
defects)
Potential
Failure Effects
(KPOVs)
S
E
V
C
l
a
s
s
Potential
Causes of
Failure (KPIVs)
O
C
C
Current
Process
Controls
D
E
T
R
P
N
Recommend
Actions
Responsible
Person &
Target Date
21 Picking Items
Wrong
Merchandise
Mis Delivery 8 Customer Error 1 None 10 80
22 8
Purchasing
Transaction Error
3 None 10 240
23 8
Packing Order
Wrong
2 None 10 160
24 8
Shipping Manif est
Wrong
3 None 10 240
25 8 Wrong ItemPicked 4 None 10 320
26
Delay In Delivery
Truck Leaving Hub
3 Wrong ItemPicked 4 Caught at Loading 3 36
27
Loading Items f or
Customer
Damaged
Merchandise
Rejected Delivery 9
Unable to raise
itemto truck
8
Hearing loose
items as loading
8 576 Dolly's/ Ramps TeamLeader
28 9
Items shif t during
loading
4
Hearing damage
occur
9 324 Use Pads TeamLeader
29 9
Items rub into each
other during
6 None 10 540 Use Straps TeamLeader
30 9
Items crush each
other
3
Hearing damage
occur
9 243
31 9
Truck walls catch
on item
5
Hearing damage
occur
9 405
Ref urbish
Truck
TeamLeader
32
Wrong
Merchandise
Mis Delivery 8
Pulled f romwrong
loading dock
2 Caught at Loading 6 96
Black Belt Project
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Project Assignment
Difficulty and
Cost of Problems
Q
u
a
n
t
i
t
y

o
f

P
r
o
b
l
e
m
s

B
B

P
r
o
j
e
c
t
s

Too Hard -
Are Usually
Management Caused
Too
Easy
Solving
World Hunger,
Boil the Ocean
Type Problems
Solving
Fruit on the Ground,
Logic & Intuition
Process Control
Type Problems
Solving
Process Optimization
Complex Interaction
Process Entitlement
Type Problems
G
B
/
Y
B

P
r
o
j
e
c
t
s

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Goal (Six Sigma System)
An enterprise wide strategy that recognizes problematic areas of the
business, defines improvement efforts and projects, determines and
implements data driven breakthrough level solutions..in a predictable and
repeatable manner to improve business results
Achieving Self Sufficiency
Initialization
Provides the structure for . A predictable and repeatable enterprise
wide strategy to improve business results
Process Management
Provides a method to.Identify potential improvement efforts and
projects, improve processes and manage process performance
Six Sigma
Provides the knowledge to. Determine and implement data driven
breakthrough level solutions to problematic areas of the business
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Business & Process
Management
System
Quality Management
System
Quality Management - The set of strategies, tactics and practices
collectively used as a Company to competitively achieve business
objectives and to satisfy customers.
Where Most Start
The First Realization
Business and Process Management - The way we
view our business efforts, set our expectations,
determine our decisions, and the way we lead the
Company to optimally satisfy all of our stakeholders.
Core Competency
What is Ultimately Achieved
Core Competency - The intellectual
knowledge and capability of
employees to quickly and accurately
solve problems, to align and optimize
business process and to make better
decisions
The Path to Self Sufficiency
1
2
3
Six Sigma becomes the Way We Think and Work