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@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance'
course in the University of Warwick, United Kingdom
Six Sigma Deployment Plan- A Case Study
The purpose of this document is to show an example for Six Sigma Deployment Plan
in an imaginary beverage company called ABC Company. All the assumptions and
needed information about this company will be stated properly. The deployment plan
will follow the framework in figure 1.
Figure 1 Deployment Plan Framework
The deployment plan will be developed by firstly, analyzing the company's
background information in order to perform two types of analysis; Six Sigma
readiness assessment and risk assessment. Secondly, the results of the two
assessments will be qualitatively analysed to form the final deployment plan.
ABC Company's Profile
ABC is a subsidiary of an international company. The main aspects that affect the
elements of the deployment plan are shown in a mind map in figure 2.
2
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance'
course in the University of Warwick, United Kingdom
Figure 2 Company's Background – Mind Map
ABC Company's Readiness Assessment
In order to assess the Company's readiness for the Six Sigma journey, a questioner,
adapted from the International Institute for Learning, was filled. The results of this
assessment indicated that:
 ABC is a doing great job in terms of listening to the voice of the customer,
however, there is still an area for improvement and Six Sigma can help in
that.
 ABC needs to assign a Six Sigma champion to speed up this deployment
journey, train Green Belts and Black Belt, and can improve the decision
making process by building employees' capabilities in using advanced
statistical techniques.
 ABC has an improvement opportunity in linking the existing performance
metrics with Six Sigma to gain better benefits.
The detailed readiness assessment is shown in Appendix A.
3
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance'
course in the University of Warwick, United Kingdom
ABC Company's Risk Management Plan for Six Sigma Deployment
According to the mind map in figure 2, ABC Company is functional- organization with
multiple organizational level. This creates bureaucracy and complicates the
communication channels. In addition, ABC’s local management reports to the
regional office and they are fully loaded most of the time.
ABC has strict financial procedures where the budget is very difficult to be exceeded;
therefore, any extra spending should be requested in advance.
ABC depends on many low- skilled operators with a low- level of education, In
addition, the other highly skilled employees (Engineers, Accountants..etc) lack of
Problem Solving Skills and Statistics. Employees’ turnover is within the acceptable
limit, however, there is always a risk of losing key employees.
Every employee has clear job description, so it is very difficult to be engaged with
extra tasks unless they are aligned with the management and communicated in
advance.
ABC has SAP (Systems, Applications and Products) so it has a good history for five
year go, and all KPIs (Key Performance Indicators) are tracked and communicated
on a timely basis.
In order to seize the fruits of Six Sigma gradually, and to ensure that there will not be
any interruption for the other improvement programs in the company, the Six Sigma
journey will be deployed over three years. Year 1 starts with Kaizen projects since
the company doesn't have a well-established Six Sigma program in place. In year 2,
Green Belt projects will be introduced in addition to resuming the Kaizen project. In
the final year, the company will start Black Belt projects besides the Green Belts and
Kaizen projects.
This approach will help to create a positive culture around Six Sigma and lean
philosophy, reducing the resistance to change and building trust. As a result, ABC
can benchmark its performance against other similar companies with a confidence
that its performance is improving consistently.
According to the readiness assessment and the above discussion, the risks
associated with Six Sigma deployment were grouped under eight categories:
4
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance'
course in the University of Warwick, United Kingdom
1. Organization's Culture 5. Time
2. Six Sigma Infrastructure 6. Information System
3. Projects' Selection 7. Communication
4. Cost 8. Monitoring and Control
The detailed risks and mitigation plans for each risk category are shown in table 1.
Table 1 Six Sigma Deployment- Risk Management
Risk Mitigation Activities Related
Documents
1- Organization's Culture
 Lack of management commitment
in terms of attending the meetings,
communicating the right message
at the right time, proving the
sufficient resources (financial,
people, time..etc.) and resolving
conflicts.
 Provide specific training for
senior management
 Provide clear schedule for the
type of support needed from the
senior management
 Keep them engaged in all stages
 Training plan
 Six Sigma
deployment
timeline
 Resistance to change and
resistance to implement the new
proposed solutions because of the
fear of losing jobs, unclear
expectations..etc
 Provide cultural-change training
to all employees
 Communicate clearly the
purpose of the program and the
progress along the journey
 Create and communicate a
reward and recognition program
 Training plan
 Communication
plan
 HR plan
 Lack of clear roadmap that links
the Six Sigma efforts to the
company's mission, visions and
values.
 Provide a framework for projects'
selection and show the link to the
company's' strategy
 Projects'
selection
framework
5
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance'
course in the University of Warwick, United Kingdom
Table 1 Six Sigma Deployment- Risk Management
Risk Mitigation Activities Related
Documents
2- Six Sigma Infrastructure
 Lack of resources in terms of:
champion, sponsors, Black Belts,
Green Belts, finance department
representative, HR representative
and IT representative. This will
slow down the implementation of
the deployment plan and will affect
the quality of the outputs.
 Designate officially Six Sigma
champion and projects'
sponsors.
 Hire full- time Black Belts and
Master Black Belt.
 Provide official nomination for
the needed Green Belts and
other departments’
representatives per each project.
 Official roles
and
responsibilities
for the
champion and
the projects'
sponsors
should be
mentioned in
the Six Sigma
kick- off
meeting
 HR plan
 Team's turn- over which may result
in losing the key personnel in the
deployment plan. Eventually, this
will slow down the implementation
and may increase the costs when
looking for replacement.
 Provide rigorous hiring and
selection criteria for the Black
Belts and the Green Belts.
 Provide clear career- path for
those Belts.
 HR plan
 Current educational level and skills
which may be insufficient to
implement the Six Sigma journey.
 Provide inclusive training
program that includes: Six
Sigma, statistics, project
management and soft skills.
 Training plan
6
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance'
course in the University of Warwick, United Kingdom
Table 1 Six Sigma Deployment- Risk Management
Risk Mitigation Activities Related
Documents
3- Projects' Selection
 Unclear projects' selection criteria
which may result in engaging the
tam in different projects that are not
aligned with the company's
strategy, or suffering from scope-
creep during the implementation.
 Utilize projects' selection
framework that links the projects
to company's strategy.
 Projects shall be approved by
finance manager and champions
in advance.
 Ensure that each project has
sponsor who is responsible for
the continuous monitoring for his/
her project.
 Projects'
selection
framework
 HR Plan
4- Cost
 Lack of fund to cover the hiring and
training expenses and the capital
expenditure for the nominated
projects. This will hinder the
fulfilment of the deployment plan or
could slow it down until getting the
fund
 Provide detailed cost-benefits
analysis to rationalize the
needed fund for Six Sigma
journey
 Provided detailed yearly
breakdown for the needed fund
 Ensure getting the financial
manager’s approval for the plan.
 Cost benefits
analysis
5- Time
 People may be overloaded with
other tasks which will affect the
timeline and the quality of their
outputs
 Hire the needed number of
resources
 HR plan
7
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance'
course in the University of Warwick, United Kingdom
Table 1 Six Sigma Deployment- Risk Management
Risk Mitigation Activities Related
Documents
 There might be too many projects
to implement without clear priorities
which will affect the implementation
of the plan
 Provide timely-phase plan over
three years and have prioritized
list of projects
 Six Sigma
deployment
timeline
6- Information System
 Lack of data which may create
difficulties in baselining the current
level of performance and figuring
the improved performance later on.
 This risk is currently low because
ABC company has SAP
(systems, Applications and
Products) software for five years
ago and all historical data is
available
-
 The current measurement system's
capability in terms of bias, linearity,
stability, repeatability and
reproducibility.
 Conduct full measurement
system analysis before
commencing the deployment
plan
 Accuracy of company's data
capturing system will be checked
one by one according to each
identified project/ initiative
-
7- Communication
 Lack of communication about the
deployment plan which may cause
resistance to change, unclear
expectations, receiving wrong
information, distributing project
information to track progress..etc
 Develop detailed communication
plan that covers the needed
reports and meetings
 Communication
plan
8
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance'
course in the University of Warwick, United Kingdom
Table 1 Six Sigma Deployment- Risk Management
Risk Mitigation Activities Related
Documents
8- Monitoring and Control
 Failing to meet the management
expectations about the Six Sigma
deployment because of the
deviation from the deployment
plan, as a result the financial
benefits will not be granted.
 The performance will be
reviewed using a balanced score
card and information will be
shared as per the
communication plan
 Champion will review the
deployment plan regularly to
ensure its applicability and
amend it when needed
 Conduct benchmark for ABC
performance against similar
companies.
 Performance
tracking plan
 Communication
plan
ABC Company's Six Sigma Deployment Plan
The Six Sigma deployment plan consists of eight parts which are the critical success
factors for ABC Company as shown in figure 3.
Figure 3 ABC Company's Critical Success Factors for Six Sigma Deployment
9
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance'
course in the University of Warwick, United Kingdom
Part 1: Linking Six Sigma to Company's Strategy
Implementing Six Sigma in ABC is aligned with the company's vision and strategy in
which it will help in the following:
 Productivity: generate saving of 740,000 USD within three years journey.
The detailed financial benefits are illustrated in Appendix B.
 People: build employees' capabilities in utilizing different tools and
techniques in their daily operations. By the end of the third year, ABC will
have one Master Black Belt, one Black Belt, 10 Green Belts and 15 Kaizen
Leaders.
 Efficiency: streamline the company's operations by reducing the cycle time,
eliminate the non-added value actives and drive the processes to a best
performance.
 Customers: sustaining the great customers' results and ensuring agile
response against any changes in the market.
 Culture: creating a new mind- set where all employees can participate in lean
Six Sigma implementation because of its nature in adapting a bottom- up
approach.
Part 2: Projects Selection Criteria
The success of this journey depends on selecting the right projects that are linked to
the company's vision and strategy. Pyzdek and Keller (2010, pp. 118) suggested
using Business Process Maps and Flow Charts. In ABC Company, projects will be
selected as per Projects' Selection Framework in figure 4. The company will spot
ideas for Six Sigma and Kaizen projects using Value Stream Mapping and SIPOC
diagram (Suppliers, Inputs, Process, Outputs and Customers).
10
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance'
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Top management/ senior management spot the hot
areas that hinder them from achieving their plans
Champion reviews the areas and assign Master Black
Belt and/ or Black Belts for Value Stream Mapping and
SIPOC workshops which are conducted at planned
intervals during the year
Master Black Belt and/ or Black Belts conduct Value
Stream Mapping and SIPOC workshops for each of the
identified processes to pinpoint value/ non-added value
activities/ variation and send their recommended
initiatives to finance team
Finance team along with subject matter experts quantify
the financial impact for each of the suggested initiatives
and form "Projects Shortlisted" for the feasible ones
Champion review the "Projects Shortlisted" with top
management to prioritize them based on a "Decisions'
Selection Matrix" that will be developed for this purpose
Top management formulates the company's strategic
plan that supports the company's vision and mission for
the next five year. The Plan is updated annually
Champion will assign project sponsors and together will
assign the projects managers for each project
Project managers are responsible for selecting the right
team members
Senior managers develop the annual operating plan that
is aligned with the strategic five years plan
Project passed the
decisions criteria
No
Yes
Updatetheannualplanaccordinglytoreflectthenewprojects
Start
End
Figure 4 ABC Company's Six Sigma Projects' Selection Framework
11
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance'
course in the University of Warwick, United Kingdom
Part 3: Performance Monitoring
The company will utilize Balanced Scorecard to track the performance of the Six
Sigma journey. The four aspects of this scorecard and the detailed matrices are
shown in table 2.
Table 2 ABC Company Six Sigma Performance Scorecard
Objective KPI/ Measure Target Actual Initiatives
Financial
Generating
saving out of
the Six
Sigma
deployment
effort
Total expenses to total saving related
to Six Sigma (Ratio)
TBD
 Lean Six Sigma
projects and initiatives
Total capital expenditure to total
saving related for Six Sigma (Ratio)
TBD
 Lean Six Sigma
projects and initiatives
Total expenses related to Six Sigma
training (USD)
225,000  Training program
Total expenses related to Six Sigma
reward and recognition (USD)
125,000
 Reward and
Recognition Program
Customer
Sustaining
the
competitive
position of
ABC
Satisfying the
company's
management
"time to sell" measure (Minutes) TBD  Kizen Project
"go to market" measure (Minutes)
TBD  Kizen Project
 Green Belt Project
Management satisfaction about Six
Sigma implementation
TBD  Questioner designed
specifically for this
purpose
InternalProcesses
Implementing
the lean Six
Sigma
projects and
initiatives on
time and as
per budget
Number of projects on time TBD
 Time Performance
Index calculations
Number of projects on budget TBD
 Cost Performance
Index calculations
Cycle time of process X (minutes) TBD
 Six Sigma green belt
project
Management engagement in the Six
Sigma deployment
TBD
 Questioner designed
specifically for this
purpose
Effectiveness of Six Sigma
communication and employees
engagement
 Questioner designed
specifically for this
purpose
Learning&
Growth
Building ABC
team's
capability in
lean Six
Sigma
Number of certified Kaizen Leaders 15  Training program
Number of certified Green Belts 10  Training program
Number of certified Black Belts 1  Training program
Number of training hours per
employee (Hours/ Employee)
1  Training program
Part 4: Human Resources (HR)
Implementing this plan effectively depends on having the proper human resources.
The detailed HR plan is shown in tables 3 to 5 which cover:
 The hiring guidelines;
 Roles and responsibilities for each one involved in this journey; and
 The proposed reward and recognition for the Six Sigma program
12
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance'
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Table 3 ABC Six Sigma Hiring Guidelines
Role Quantity Qualifications Needed
Master Black
Belt Manager
1 candidate in the
first year
 At least 5 years of experience in the role of a
Black Belt*.
 Soft skills: teaching, coaching, mentoring,
communication and innovation.
 Advance project management skills.
Black Belt 1 candidate in the
third year
 At least 3 years of work experience in one or
more areas of the Black Belt Six Sigma Body of
Knowledge*.
 Soft skills: teaching, coaching, mentoring,
communication and innovation.
 Advance project management skills.
Green Belt 5 candidates in
the second year
and 5 candidates
in the third year
 Soft skills: leadership, problem solving and
communication.
 Basics project management skills.
Kaizen Leader 5 candidates
each year
 Basics project management skills.
 Soft skills: leadership, problem solving and
communication
Projects Team
Members
As per the
projects
 Soft skills: communication, time management and
cooperation.
 Technical skills as per the assigned projects.
* Source: ASQ (American Society of Quality) available on the WWW at:
http://asq.org/. [Accessed in 1st December 2015].
13
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Table 4 ABC Company Six Sigma Roles and Responsibility*
Role Responsibility
General Manager  Communicate the importance of Six Sigma journey in the annual
employees' meeting.
 Illustrate the link between Six Sigma journey and the company's vision and
strategy.
 Ensure the availability of resources (financial, human resources and
infrastructure).
 Approve and authorize the Six Sigma deployment plan.
 Approve the assignment of champion and sponsors.
 Attend the required training as per the "Training Assignment Matrix".
Departments
Directors
 Support the reward and recognition program.
 Provide the need support in his/ her department.
 Attend the required training as per the "Training Assignment Matrix".
Functional
Managers
 Provide the needed resources for the Six Sigma projects.
 Act as subject matter expert.
 Ensure the implementation of the proposed solutions.
 Attend the required training as per the "Training Assignment Matrix".
Champion  Develop the Six Sigma deployment plan.
 Liaison with finance manager and top management to ensure selecting the
right projects.
 Participate in hiring the Master Black Belts and Black Belts, in addition to
selecting the internal Green Belts and Kaizen Leaders.
 Monitor the performance of all Six Sigma players.
 Communicate the Six Sigma journey internally and externally.
 Support the reward and recognition program.
 Attend the required training as per the "Training Assignment Matrix".
Sponsors  Provide the needed support to his/ her project.
 Review the progress of the project to ensure that that is no scope crepe
and the project will deliver its objectives on time.
 Coach, mentor, and solve any problems raised by the project manager.
 Authorize the project charter.
 Attend the required training as per the "Training Assignment Matrix".
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Table 4 ABC Company Six Sigma Roles and Responsibility*
Role Responsibility
Master Black
Belts
 Mobilize the reward and recognition program.
 Coach, mentor, and support any issues raised by the Black Belts.
 Certify the Black Belts, Green Belt and Kaizen Leaders.
 Attend the required training as per the "Training Assignment Matrix".
Black Belts  Implement the assigned Six Sigma Black Belt project.
 Coach, mentor, and support any issues raised by the Green Belts.
 Attend the required training as per the "Training Assignment Matrix".
Green Belts  Implement the assigned Six Sigma Green Belt project.
 Work with function heads to ensure the availability of the right team
members.
 Attend the required training as per the "Training Assignment Matrix".
Project Team
Members
 Participate actively in the assigned projects as per the required tasks (such
as: data collection, analysis, act as a subject matter expert..etc).
 Attend the required training as per the "Training Assignment Matrix".
*Source: The Six Sigma Handbook (Pyzdek and Keller, 2010, pp. 19)
Table 5 ABC Company Six Sigma Reward and Recognition Program
Reward and Recognition
Type
Audience Criteria
Free lunch inside the facility Team members
Other employees who support
the project in his/ her
department
As set by the project manager
Celebration in external
venue
Kaizen Leaders/ Green Belts/
Black Belts/ Master Black
Belts
Meeting project goals by year end as
evaluated by the champion
Monthly nomination for
"Employee of the Month"
with Free Shopping Coupon
All employees As set by the Master Black Belt and
Champion
Professional Certificates Green Belts and Black Belts Implementing the assigned project
as evaluated by the Champion and
the Master Black Belt
Part 5: Training
In order to ensure smooth implementation, different training courses and events
should be introduced covering all employees and the detailed training plan are shown
in table 6 and 7 respectively.
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Table 6 Six Sigma Training Plan in ABC Company
No. Course Name Description Delivery Method Duration Frequency
1 Six Sigma Awareness Event General awareness about Six Sigma and
lean philosophy covering all employees. The
training should introduce the concepts using
fun activities and will be delivered in the local
language (Arabic)
Event in internal
venue
3 Hours Monthly to cover all
employees in the first six
months
2 Master Black Belt Course Dedicated training for Master Black Belts
candidates that cover the body of knowledge
in that area, and advance soft skills
Class One month Once and whenever there is
a change in that role
3 Black Belt Course Dedicated training for Black Belts candidates
that cover the body of knowledge in that
area, project management skills, and soft
skills such as mentoring and coaching.
Class 20 days For each new wave
4 Green Belt Course Dedicated training for Green Belts
candidates that cover the body of knowledge
in that area and project management skills
Class 5 days For each new wave
5 Basics Statistics and Problem
Solving Tools
Introduction to the basic statistics and
problem solving tools. The training will be
provided in the local language and cover all
employees who need data analyse in their
daily work. In addition, all Kaizen Leaders/
Green Belts/ Black Belts should attend if they
don't have those basics.
Online 3 days Semi Annual
6 Advanced Statistics and
Problem Solving Tools
Advanced statistics and problem solving
tools dedicated for Black Belts and Green
Belts if they don't have this knowledge. The
training will be provided in English.
Online 3 days For each new wave
7 Management by- in Event An event to introduce the Six Sigma and lean
philosophy to the management to ensure
management by-in, support and continuous
engagement.
Event in external
venue
4 Hours Annually
8 Champion Training Dedicated training for the champion covering
soft skills such as: mentorship, conflict
management, and communication skills
Online or by
external training
provider
2 days Once and whenever there is
a change in that role
9 Sponsors Training Dedicated training for the sponsors covering
project management skills, mentoring, and
coaching
class delivered
by the champion
and/or external
training provider
5 hours Once and whenever there is
a change in that role
16
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom
Table 7 ABC Company Six Sigma Training Assignment Matrix
No. Course Name
Employees Groups
Top
Management
Master
Black
Belts
Black
Belts
Green
Belts
Champion
Projects
Sponsors
Process
Owner
Projects
team
Members
All other
employees
1 Six Sigma Awareness Event √ √ √ √ √ √ √ √ √
2 Master Black Belt Course √
3 Black Belt Course √
4 Green Belt Course √
5 Statistics Basics and Problem Solving √ √ √ √
6 Advanced Statistics and Problem Solving √ √
7 Management by- in Event √ √ √
8 Champion Training √
9 Sponsors Training √
17
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Part 6: Communication
Different information will be aggregated from weekly and monthly meetings. This
includes:
 Six Sigma Dashboard
 Projects Status Reports
 Balances Scorecard
 Financial Tracking
 Tone from the top about vision, strategy and Six Sigma.
Detailed communication methods, responsibilities and frequency are in table 8.
Table 8 ABC Company Six Sigma Communication Plan
Communication
type
Audience Form of communication Responsibility Frequency
Six Sigma
Dashboard
Project Team Billboard in a meeting room to
be discussed by each project
manager with his/ her team
during the weekly team
meeting
Project
Manager
Weekly
Projects Status Sponsor and
Master Black
Belt
A3 report to be discussed by
the project manager during the
weekly meeting with his/ her
sponsor and the Master Black
Belt
Project
Manager
Weekly
Balances
Scorecard
Top
Management
PowerPoint presentation to be
discussed in a meeting
Master Black
Belts
Monthly
Financial
Tracking
Top
Management
Excel Sheet Report to be sent
via e-mail
Financial
Manager
Monthly
Tone from the
top about visions,
strategy and Six
Sigma
All
employees
Speech and E-mails to be
circulated regularly to ensure
engagement
Top
Management
and
Champion
During the kick
off meeting
and Quarterly
e-mails
Part 7: Leadership Role
The engagement of the company's leadership in Six Sigma deployment is one of the
main critical success factors, whereby It is not a single event; it is a continuous
mission starts early in the initial phase and continues throughout the journey.
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As outlined in the previous parts, the engagement is fulfilled in two directions. On the
first hand, managers shall play specific roles and responsibilities as defined in the HR
plan including but not limited to: setting tone from the top about the benefits of Six
Sigma, providing the needed resources whether the financial, human resources or
even the infrastructure, providing official nomination for the Six Sigma champion and
projects' sponsors, supporting the reward and recognition programs, attending
specific training as per the "training assignment matrix" and participating in the
"projects selection framework".
On the other hands, by linking the Six Sigma deployment with the company's vision
and strategy, managers can rest assure that this effort will advance the company's'
performance. Accordingly, managers shall receive regular updates about Six Sigma
progress through the balanced scorecard in table 2 and the detailed roadmap over
three- year’s journey.
Part 8: Cultural Change
Employees' resistance to change is avital obstacle in Six Sigma deployment. The
proposed deployment plan shall overcome this by addressing three points. Firstly,
implementing specific actions such as cultural-change training, a reward and
recognition program dedicated to reward the Six Sigma performance, providing clear
communication for the expectations in terms of their roles and responsibilities, and
empowering employees to be part of the Six Sigma projects and its career path.
Secondly, the proposed plan will be implemented over three years so everyone can
be engaged at the right pace. Finally, the projects are always linked to the company's
strategy to ensure that there is no contradiction with the other projects and initiatives
in the company.
Part 9: Implementation Roadmap
The timeline for the major events is shown in figure 5 and the detailed timeline is in
table 9.
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Figure 5 ABC Company's Six Sigma Plan
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Table 9 ABC Six Sigma Implementation Timeline
Year Q1 Q2 Q3 Q4
2016
 Communicate the
following:
 Projects selection
framework
 Training agenda
 Roles and
responsibilities
 Conduct first VSM
sessions
 Conduct management
training topics
 Kaizen Leader Training
 Communicate the reward and
recognition program
 Awareness and cultural- change
training
 Kaizen Leaders
Implementation
 VSM Workshop
 Award kaizen Leaders
Certificates
2017
 Hire Black Belt
 Green Belt Training
 VSM Workshop
 Kaizen Leader Training
 Green belt Implementation
 Kaizen Leaders Implementation
 Refresh training
 VSM Workshop  Award Green Belts and
Kizen Leaner Certificates
2018
 VSM Workshop
 Green Belt Training
 Kaizen Leader Training
 Green Belt Implementation
 Kaizen Leaders Implementation
 Black Belt implementation
 Refresh training
 VSM Workshop  Award Black Belts, Green
Belts and Kizen Leaner
Certificates
21
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the
University of Warwick, United Kingdom
References
American Society for Quality. Available at the WWW on http://asq.org/index.aspx [Accessed in
1st December 2015].
Pyzdek, T. and Keller, P. (2010). The Six Sigma Handbook. 3rd ed. New York: McGraw-Hill
Companies.
22
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the
University of Warwick, United Kingdom
Appendix A- ABC Company's Six Sigma Readiness Assessment
Source: International Institute for Learning, Inc. available at the WWW on:
https://www.iil.com/leansixsigma/getlean/Six_Sigma_Readiness_Assessment_Tool.xls.
[Accessed in 1st December 2015].
23
@ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance'
course in the University of Warwick, United Kingdom
Appendix B- ABC Company's Six Sigma Cost- Benefits Analysis
This appendix shows the costs and benefits associated with the Six Sigma journey
First: Expected Benefits
The company will launch 5 Kaizen projects in the first year. Each one is expected to
save 25,000 USD. In the second year, the company will start Green Belt projects,
each one is expected to generate saving of 50,000 USD alongside the other five
Kaizen projects. In the third year, the company will implement two Black Belts
project, each is expected to save 100,000 USD, in addition to implementing another
five Kaizen projects and five Green Belt Projects. The total saving by the end of the
third year is as the following:
Table 0.1 ABC Six Sigma Deployment Financial Benefits
Year Kaizen Projects
(25,000 USD
Saving)
Green Belt
Projects
(50,000 USD
Saving)
Black Belt Projects
(100,000 USD
Saving)
Expected
Saving
(USD)
1 5 0 0 125,000
2 5 5 0 375,000
3 5 5 2 575,000
Total benefits by end of third year 1,075,000
Second: Expected Costs
The costs needed for the Six Sigma journey are shown in the below table:
Table 0.2 ABC Six Sigma Deployment Financial Costs
Item Required from Yearly Costs (USD) Total Cost
(USD)
Consulting and training
costs
First year to third year 50,000 USD in the first year
75,000 USD in the second
year
100,000 USD in in third
year
225,000
Hiring Master Black Belt in
the first year
First year to third year 60,000 180,000
Hiring Black Belt in the
third year
Third year 35,000 35,000
Reward and recognition
program
First year to third year 20,000 USD in the first year
40,000 USD in the second
year
60,000 USD in in third year
120,000
Total costs by end of third year (USD) 335,000
Total expected revenue by end of the third year is 740,000 USD

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Six Sigma Deployement Plan: A Case Study

  • 1. 1 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Six Sigma Deployment Plan- A Case Study The purpose of this document is to show an example for Six Sigma Deployment Plan in an imaginary beverage company called ABC Company. All the assumptions and needed information about this company will be stated properly. The deployment plan will follow the framework in figure 1. Figure 1 Deployment Plan Framework The deployment plan will be developed by firstly, analyzing the company's background information in order to perform two types of analysis; Six Sigma readiness assessment and risk assessment. Secondly, the results of the two assessments will be qualitatively analysed to form the final deployment plan. ABC Company's Profile ABC is a subsidiary of an international company. The main aspects that affect the elements of the deployment plan are shown in a mind map in figure 2.
  • 2. 2 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Figure 2 Company's Background – Mind Map ABC Company's Readiness Assessment In order to assess the Company's readiness for the Six Sigma journey, a questioner, adapted from the International Institute for Learning, was filled. The results of this assessment indicated that:  ABC is a doing great job in terms of listening to the voice of the customer, however, there is still an area for improvement and Six Sigma can help in that.  ABC needs to assign a Six Sigma champion to speed up this deployment journey, train Green Belts and Black Belt, and can improve the decision making process by building employees' capabilities in using advanced statistical techniques.  ABC has an improvement opportunity in linking the existing performance metrics with Six Sigma to gain better benefits. The detailed readiness assessment is shown in Appendix A.
  • 3. 3 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom ABC Company's Risk Management Plan for Six Sigma Deployment According to the mind map in figure 2, ABC Company is functional- organization with multiple organizational level. This creates bureaucracy and complicates the communication channels. In addition, ABC’s local management reports to the regional office and they are fully loaded most of the time. ABC has strict financial procedures where the budget is very difficult to be exceeded; therefore, any extra spending should be requested in advance. ABC depends on many low- skilled operators with a low- level of education, In addition, the other highly skilled employees (Engineers, Accountants..etc) lack of Problem Solving Skills and Statistics. Employees’ turnover is within the acceptable limit, however, there is always a risk of losing key employees. Every employee has clear job description, so it is very difficult to be engaged with extra tasks unless they are aligned with the management and communicated in advance. ABC has SAP (Systems, Applications and Products) so it has a good history for five year go, and all KPIs (Key Performance Indicators) are tracked and communicated on a timely basis. In order to seize the fruits of Six Sigma gradually, and to ensure that there will not be any interruption for the other improvement programs in the company, the Six Sigma journey will be deployed over three years. Year 1 starts with Kaizen projects since the company doesn't have a well-established Six Sigma program in place. In year 2, Green Belt projects will be introduced in addition to resuming the Kaizen project. In the final year, the company will start Black Belt projects besides the Green Belts and Kaizen projects. This approach will help to create a positive culture around Six Sigma and lean philosophy, reducing the resistance to change and building trust. As a result, ABC can benchmark its performance against other similar companies with a confidence that its performance is improving consistently. According to the readiness assessment and the above discussion, the risks associated with Six Sigma deployment were grouped under eight categories:
  • 4. 4 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom 1. Organization's Culture 5. Time 2. Six Sigma Infrastructure 6. Information System 3. Projects' Selection 7. Communication 4. Cost 8. Monitoring and Control The detailed risks and mitigation plans for each risk category are shown in table 1. Table 1 Six Sigma Deployment- Risk Management Risk Mitigation Activities Related Documents 1- Organization's Culture  Lack of management commitment in terms of attending the meetings, communicating the right message at the right time, proving the sufficient resources (financial, people, time..etc.) and resolving conflicts.  Provide specific training for senior management  Provide clear schedule for the type of support needed from the senior management  Keep them engaged in all stages  Training plan  Six Sigma deployment timeline  Resistance to change and resistance to implement the new proposed solutions because of the fear of losing jobs, unclear expectations..etc  Provide cultural-change training to all employees  Communicate clearly the purpose of the program and the progress along the journey  Create and communicate a reward and recognition program  Training plan  Communication plan  HR plan  Lack of clear roadmap that links the Six Sigma efforts to the company's mission, visions and values.  Provide a framework for projects' selection and show the link to the company's' strategy  Projects' selection framework
  • 5. 5 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Table 1 Six Sigma Deployment- Risk Management Risk Mitigation Activities Related Documents 2- Six Sigma Infrastructure  Lack of resources in terms of: champion, sponsors, Black Belts, Green Belts, finance department representative, HR representative and IT representative. This will slow down the implementation of the deployment plan and will affect the quality of the outputs.  Designate officially Six Sigma champion and projects' sponsors.  Hire full- time Black Belts and Master Black Belt.  Provide official nomination for the needed Green Belts and other departments’ representatives per each project.  Official roles and responsibilities for the champion and the projects' sponsors should be mentioned in the Six Sigma kick- off meeting  HR plan  Team's turn- over which may result in losing the key personnel in the deployment plan. Eventually, this will slow down the implementation and may increase the costs when looking for replacement.  Provide rigorous hiring and selection criteria for the Black Belts and the Green Belts.  Provide clear career- path for those Belts.  HR plan  Current educational level and skills which may be insufficient to implement the Six Sigma journey.  Provide inclusive training program that includes: Six Sigma, statistics, project management and soft skills.  Training plan
  • 6. 6 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Table 1 Six Sigma Deployment- Risk Management Risk Mitigation Activities Related Documents 3- Projects' Selection  Unclear projects' selection criteria which may result in engaging the tam in different projects that are not aligned with the company's strategy, or suffering from scope- creep during the implementation.  Utilize projects' selection framework that links the projects to company's strategy.  Projects shall be approved by finance manager and champions in advance.  Ensure that each project has sponsor who is responsible for the continuous monitoring for his/ her project.  Projects' selection framework  HR Plan 4- Cost  Lack of fund to cover the hiring and training expenses and the capital expenditure for the nominated projects. This will hinder the fulfilment of the deployment plan or could slow it down until getting the fund  Provide detailed cost-benefits analysis to rationalize the needed fund for Six Sigma journey  Provided detailed yearly breakdown for the needed fund  Ensure getting the financial manager’s approval for the plan.  Cost benefits analysis 5- Time  People may be overloaded with other tasks which will affect the timeline and the quality of their outputs  Hire the needed number of resources  HR plan
  • 7. 7 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Table 1 Six Sigma Deployment- Risk Management Risk Mitigation Activities Related Documents  There might be too many projects to implement without clear priorities which will affect the implementation of the plan  Provide timely-phase plan over three years and have prioritized list of projects  Six Sigma deployment timeline 6- Information System  Lack of data which may create difficulties in baselining the current level of performance and figuring the improved performance later on.  This risk is currently low because ABC company has SAP (systems, Applications and Products) software for five years ago and all historical data is available -  The current measurement system's capability in terms of bias, linearity, stability, repeatability and reproducibility.  Conduct full measurement system analysis before commencing the deployment plan  Accuracy of company's data capturing system will be checked one by one according to each identified project/ initiative - 7- Communication  Lack of communication about the deployment plan which may cause resistance to change, unclear expectations, receiving wrong information, distributing project information to track progress..etc  Develop detailed communication plan that covers the needed reports and meetings  Communication plan
  • 8. 8 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Table 1 Six Sigma Deployment- Risk Management Risk Mitigation Activities Related Documents 8- Monitoring and Control  Failing to meet the management expectations about the Six Sigma deployment because of the deviation from the deployment plan, as a result the financial benefits will not be granted.  The performance will be reviewed using a balanced score card and information will be shared as per the communication plan  Champion will review the deployment plan regularly to ensure its applicability and amend it when needed  Conduct benchmark for ABC performance against similar companies.  Performance tracking plan  Communication plan ABC Company's Six Sigma Deployment Plan The Six Sigma deployment plan consists of eight parts which are the critical success factors for ABC Company as shown in figure 3. Figure 3 ABC Company's Critical Success Factors for Six Sigma Deployment
  • 9. 9 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Part 1: Linking Six Sigma to Company's Strategy Implementing Six Sigma in ABC is aligned with the company's vision and strategy in which it will help in the following:  Productivity: generate saving of 740,000 USD within three years journey. The detailed financial benefits are illustrated in Appendix B.  People: build employees' capabilities in utilizing different tools and techniques in their daily operations. By the end of the third year, ABC will have one Master Black Belt, one Black Belt, 10 Green Belts and 15 Kaizen Leaders.  Efficiency: streamline the company's operations by reducing the cycle time, eliminate the non-added value actives and drive the processes to a best performance.  Customers: sustaining the great customers' results and ensuring agile response against any changes in the market.  Culture: creating a new mind- set where all employees can participate in lean Six Sigma implementation because of its nature in adapting a bottom- up approach. Part 2: Projects Selection Criteria The success of this journey depends on selecting the right projects that are linked to the company's vision and strategy. Pyzdek and Keller (2010, pp. 118) suggested using Business Process Maps and Flow Charts. In ABC Company, projects will be selected as per Projects' Selection Framework in figure 4. The company will spot ideas for Six Sigma and Kaizen projects using Value Stream Mapping and SIPOC diagram (Suppliers, Inputs, Process, Outputs and Customers).
  • 10. 10 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Top management/ senior management spot the hot areas that hinder them from achieving their plans Champion reviews the areas and assign Master Black Belt and/ or Black Belts for Value Stream Mapping and SIPOC workshops which are conducted at planned intervals during the year Master Black Belt and/ or Black Belts conduct Value Stream Mapping and SIPOC workshops for each of the identified processes to pinpoint value/ non-added value activities/ variation and send their recommended initiatives to finance team Finance team along with subject matter experts quantify the financial impact for each of the suggested initiatives and form "Projects Shortlisted" for the feasible ones Champion review the "Projects Shortlisted" with top management to prioritize them based on a "Decisions' Selection Matrix" that will be developed for this purpose Top management formulates the company's strategic plan that supports the company's vision and mission for the next five year. The Plan is updated annually Champion will assign project sponsors and together will assign the projects managers for each project Project managers are responsible for selecting the right team members Senior managers develop the annual operating plan that is aligned with the strategic five years plan Project passed the decisions criteria No Yes Updatetheannualplanaccordinglytoreflectthenewprojects Start End Figure 4 ABC Company's Six Sigma Projects' Selection Framework
  • 11. 11 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Part 3: Performance Monitoring The company will utilize Balanced Scorecard to track the performance of the Six Sigma journey. The four aspects of this scorecard and the detailed matrices are shown in table 2. Table 2 ABC Company Six Sigma Performance Scorecard Objective KPI/ Measure Target Actual Initiatives Financial Generating saving out of the Six Sigma deployment effort Total expenses to total saving related to Six Sigma (Ratio) TBD  Lean Six Sigma projects and initiatives Total capital expenditure to total saving related for Six Sigma (Ratio) TBD  Lean Six Sigma projects and initiatives Total expenses related to Six Sigma training (USD) 225,000  Training program Total expenses related to Six Sigma reward and recognition (USD) 125,000  Reward and Recognition Program Customer Sustaining the competitive position of ABC Satisfying the company's management "time to sell" measure (Minutes) TBD  Kizen Project "go to market" measure (Minutes) TBD  Kizen Project  Green Belt Project Management satisfaction about Six Sigma implementation TBD  Questioner designed specifically for this purpose InternalProcesses Implementing the lean Six Sigma projects and initiatives on time and as per budget Number of projects on time TBD  Time Performance Index calculations Number of projects on budget TBD  Cost Performance Index calculations Cycle time of process X (minutes) TBD  Six Sigma green belt project Management engagement in the Six Sigma deployment TBD  Questioner designed specifically for this purpose Effectiveness of Six Sigma communication and employees engagement  Questioner designed specifically for this purpose Learning& Growth Building ABC team's capability in lean Six Sigma Number of certified Kaizen Leaders 15  Training program Number of certified Green Belts 10  Training program Number of certified Black Belts 1  Training program Number of training hours per employee (Hours/ Employee) 1  Training program Part 4: Human Resources (HR) Implementing this plan effectively depends on having the proper human resources. The detailed HR plan is shown in tables 3 to 5 which cover:  The hiring guidelines;  Roles and responsibilities for each one involved in this journey; and  The proposed reward and recognition for the Six Sigma program
  • 12. 12 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Table 3 ABC Six Sigma Hiring Guidelines Role Quantity Qualifications Needed Master Black Belt Manager 1 candidate in the first year  At least 5 years of experience in the role of a Black Belt*.  Soft skills: teaching, coaching, mentoring, communication and innovation.  Advance project management skills. Black Belt 1 candidate in the third year  At least 3 years of work experience in one or more areas of the Black Belt Six Sigma Body of Knowledge*.  Soft skills: teaching, coaching, mentoring, communication and innovation.  Advance project management skills. Green Belt 5 candidates in the second year and 5 candidates in the third year  Soft skills: leadership, problem solving and communication.  Basics project management skills. Kaizen Leader 5 candidates each year  Basics project management skills.  Soft skills: leadership, problem solving and communication Projects Team Members As per the projects  Soft skills: communication, time management and cooperation.  Technical skills as per the assigned projects. * Source: ASQ (American Society of Quality) available on the WWW at: http://asq.org/. [Accessed in 1st December 2015].
  • 13. 13 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Table 4 ABC Company Six Sigma Roles and Responsibility* Role Responsibility General Manager  Communicate the importance of Six Sigma journey in the annual employees' meeting.  Illustrate the link between Six Sigma journey and the company's vision and strategy.  Ensure the availability of resources (financial, human resources and infrastructure).  Approve and authorize the Six Sigma deployment plan.  Approve the assignment of champion and sponsors.  Attend the required training as per the "Training Assignment Matrix". Departments Directors  Support the reward and recognition program.  Provide the need support in his/ her department.  Attend the required training as per the "Training Assignment Matrix". Functional Managers  Provide the needed resources for the Six Sigma projects.  Act as subject matter expert.  Ensure the implementation of the proposed solutions.  Attend the required training as per the "Training Assignment Matrix". Champion  Develop the Six Sigma deployment plan.  Liaison with finance manager and top management to ensure selecting the right projects.  Participate in hiring the Master Black Belts and Black Belts, in addition to selecting the internal Green Belts and Kaizen Leaders.  Monitor the performance of all Six Sigma players.  Communicate the Six Sigma journey internally and externally.  Support the reward and recognition program.  Attend the required training as per the "Training Assignment Matrix". Sponsors  Provide the needed support to his/ her project.  Review the progress of the project to ensure that that is no scope crepe and the project will deliver its objectives on time.  Coach, mentor, and solve any problems raised by the project manager.  Authorize the project charter.  Attend the required training as per the "Training Assignment Matrix".
  • 14. 14 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Table 4 ABC Company Six Sigma Roles and Responsibility* Role Responsibility Master Black Belts  Mobilize the reward and recognition program.  Coach, mentor, and support any issues raised by the Black Belts.  Certify the Black Belts, Green Belt and Kaizen Leaders.  Attend the required training as per the "Training Assignment Matrix". Black Belts  Implement the assigned Six Sigma Black Belt project.  Coach, mentor, and support any issues raised by the Green Belts.  Attend the required training as per the "Training Assignment Matrix". Green Belts  Implement the assigned Six Sigma Green Belt project.  Work with function heads to ensure the availability of the right team members.  Attend the required training as per the "Training Assignment Matrix". Project Team Members  Participate actively in the assigned projects as per the required tasks (such as: data collection, analysis, act as a subject matter expert..etc).  Attend the required training as per the "Training Assignment Matrix". *Source: The Six Sigma Handbook (Pyzdek and Keller, 2010, pp. 19) Table 5 ABC Company Six Sigma Reward and Recognition Program Reward and Recognition Type Audience Criteria Free lunch inside the facility Team members Other employees who support the project in his/ her department As set by the project manager Celebration in external venue Kaizen Leaders/ Green Belts/ Black Belts/ Master Black Belts Meeting project goals by year end as evaluated by the champion Monthly nomination for "Employee of the Month" with Free Shopping Coupon All employees As set by the Master Black Belt and Champion Professional Certificates Green Belts and Black Belts Implementing the assigned project as evaluated by the Champion and the Master Black Belt Part 5: Training In order to ensure smooth implementation, different training courses and events should be introduced covering all employees and the detailed training plan are shown in table 6 and 7 respectively.
  • 15. 15 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Table 6 Six Sigma Training Plan in ABC Company No. Course Name Description Delivery Method Duration Frequency 1 Six Sigma Awareness Event General awareness about Six Sigma and lean philosophy covering all employees. The training should introduce the concepts using fun activities and will be delivered in the local language (Arabic) Event in internal venue 3 Hours Monthly to cover all employees in the first six months 2 Master Black Belt Course Dedicated training for Master Black Belts candidates that cover the body of knowledge in that area, and advance soft skills Class One month Once and whenever there is a change in that role 3 Black Belt Course Dedicated training for Black Belts candidates that cover the body of knowledge in that area, project management skills, and soft skills such as mentoring and coaching. Class 20 days For each new wave 4 Green Belt Course Dedicated training for Green Belts candidates that cover the body of knowledge in that area and project management skills Class 5 days For each new wave 5 Basics Statistics and Problem Solving Tools Introduction to the basic statistics and problem solving tools. The training will be provided in the local language and cover all employees who need data analyse in their daily work. In addition, all Kaizen Leaders/ Green Belts/ Black Belts should attend if they don't have those basics. Online 3 days Semi Annual 6 Advanced Statistics and Problem Solving Tools Advanced statistics and problem solving tools dedicated for Black Belts and Green Belts if they don't have this knowledge. The training will be provided in English. Online 3 days For each new wave 7 Management by- in Event An event to introduce the Six Sigma and lean philosophy to the management to ensure management by-in, support and continuous engagement. Event in external venue 4 Hours Annually 8 Champion Training Dedicated training for the champion covering soft skills such as: mentorship, conflict management, and communication skills Online or by external training provider 2 days Once and whenever there is a change in that role 9 Sponsors Training Dedicated training for the sponsors covering project management skills, mentoring, and coaching class delivered by the champion and/or external training provider 5 hours Once and whenever there is a change in that role
  • 16. 16 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Table 7 ABC Company Six Sigma Training Assignment Matrix No. Course Name Employees Groups Top Management Master Black Belts Black Belts Green Belts Champion Projects Sponsors Process Owner Projects team Members All other employees 1 Six Sigma Awareness Event √ √ √ √ √ √ √ √ √ 2 Master Black Belt Course √ 3 Black Belt Course √ 4 Green Belt Course √ 5 Statistics Basics and Problem Solving √ √ √ √ 6 Advanced Statistics and Problem Solving √ √ 7 Management by- in Event √ √ √ 8 Champion Training √ 9 Sponsors Training √
  • 17. 17 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Part 6: Communication Different information will be aggregated from weekly and monthly meetings. This includes:  Six Sigma Dashboard  Projects Status Reports  Balances Scorecard  Financial Tracking  Tone from the top about vision, strategy and Six Sigma. Detailed communication methods, responsibilities and frequency are in table 8. Table 8 ABC Company Six Sigma Communication Plan Communication type Audience Form of communication Responsibility Frequency Six Sigma Dashboard Project Team Billboard in a meeting room to be discussed by each project manager with his/ her team during the weekly team meeting Project Manager Weekly Projects Status Sponsor and Master Black Belt A3 report to be discussed by the project manager during the weekly meeting with his/ her sponsor and the Master Black Belt Project Manager Weekly Balances Scorecard Top Management PowerPoint presentation to be discussed in a meeting Master Black Belts Monthly Financial Tracking Top Management Excel Sheet Report to be sent via e-mail Financial Manager Monthly Tone from the top about visions, strategy and Six Sigma All employees Speech and E-mails to be circulated regularly to ensure engagement Top Management and Champion During the kick off meeting and Quarterly e-mails Part 7: Leadership Role The engagement of the company's leadership in Six Sigma deployment is one of the main critical success factors, whereby It is not a single event; it is a continuous mission starts early in the initial phase and continues throughout the journey.
  • 18. 18 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom As outlined in the previous parts, the engagement is fulfilled in two directions. On the first hand, managers shall play specific roles and responsibilities as defined in the HR plan including but not limited to: setting tone from the top about the benefits of Six Sigma, providing the needed resources whether the financial, human resources or even the infrastructure, providing official nomination for the Six Sigma champion and projects' sponsors, supporting the reward and recognition programs, attending specific training as per the "training assignment matrix" and participating in the "projects selection framework". On the other hands, by linking the Six Sigma deployment with the company's vision and strategy, managers can rest assure that this effort will advance the company's' performance. Accordingly, managers shall receive regular updates about Six Sigma progress through the balanced scorecard in table 2 and the detailed roadmap over three- year’s journey. Part 8: Cultural Change Employees' resistance to change is avital obstacle in Six Sigma deployment. The proposed deployment plan shall overcome this by addressing three points. Firstly, implementing specific actions such as cultural-change training, a reward and recognition program dedicated to reward the Six Sigma performance, providing clear communication for the expectations in terms of their roles and responsibilities, and empowering employees to be part of the Six Sigma projects and its career path. Secondly, the proposed plan will be implemented over three years so everyone can be engaged at the right pace. Finally, the projects are always linked to the company's strategy to ensure that there is no contradiction with the other projects and initiatives in the company. Part 9: Implementation Roadmap The timeline for the major events is shown in figure 5 and the detailed timeline is in table 9.
  • 19. 19 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Figure 5 ABC Company's Six Sigma Plan
  • 20. 20 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Table 9 ABC Six Sigma Implementation Timeline Year Q1 Q2 Q3 Q4 2016  Communicate the following:  Projects selection framework  Training agenda  Roles and responsibilities  Conduct first VSM sessions  Conduct management training topics  Kaizen Leader Training  Communicate the reward and recognition program  Awareness and cultural- change training  Kaizen Leaders Implementation  VSM Workshop  Award kaizen Leaders Certificates 2017  Hire Black Belt  Green Belt Training  VSM Workshop  Kaizen Leader Training  Green belt Implementation  Kaizen Leaders Implementation  Refresh training  VSM Workshop  Award Green Belts and Kizen Leaner Certificates 2018  VSM Workshop  Green Belt Training  Kaizen Leader Training  Green Belt Implementation  Kaizen Leaders Implementation  Black Belt implementation  Refresh training  VSM Workshop  Award Black Belts, Green Belts and Kizen Leaner Certificates
  • 21. 21 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom References American Society for Quality. Available at the WWW on http://asq.org/index.aspx [Accessed in 1st December 2015]. Pyzdek, T. and Keller, P. (2010). The Six Sigma Handbook. 3rd ed. New York: McGraw-Hill Companies.
  • 22. 22 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Appendix A- ABC Company's Six Sigma Readiness Assessment Source: International Institute for Learning, Inc. available at the WWW on: https://www.iil.com/leansixsigma/getlean/Six_Sigma_Readiness_Assessment_Tool.xls. [Accessed in 1st December 2015].
  • 23. 23 @ 2015 AYAT A. SALEH, submitted as a part of the 'Quality, Reliability and Maintenance' course in the University of Warwick, United Kingdom Appendix B- ABC Company's Six Sigma Cost- Benefits Analysis This appendix shows the costs and benefits associated with the Six Sigma journey First: Expected Benefits The company will launch 5 Kaizen projects in the first year. Each one is expected to save 25,000 USD. In the second year, the company will start Green Belt projects, each one is expected to generate saving of 50,000 USD alongside the other five Kaizen projects. In the third year, the company will implement two Black Belts project, each is expected to save 100,000 USD, in addition to implementing another five Kaizen projects and five Green Belt Projects. The total saving by the end of the third year is as the following: Table 0.1 ABC Six Sigma Deployment Financial Benefits Year Kaizen Projects (25,000 USD Saving) Green Belt Projects (50,000 USD Saving) Black Belt Projects (100,000 USD Saving) Expected Saving (USD) 1 5 0 0 125,000 2 5 5 0 375,000 3 5 5 2 575,000 Total benefits by end of third year 1,075,000 Second: Expected Costs The costs needed for the Six Sigma journey are shown in the below table: Table 0.2 ABC Six Sigma Deployment Financial Costs Item Required from Yearly Costs (USD) Total Cost (USD) Consulting and training costs First year to third year 50,000 USD in the first year 75,000 USD in the second year 100,000 USD in in third year 225,000 Hiring Master Black Belt in the first year First year to third year 60,000 180,000 Hiring Black Belt in the third year Third year 35,000 35,000 Reward and recognition program First year to third year 20,000 USD in the first year 40,000 USD in the second year 60,000 USD in in third year 120,000 Total costs by end of third year (USD) 335,000 Total expected revenue by end of the third year is 740,000 USD