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Organization-Wide Planning and Deployment (BOK I)

11. Causes of Six Sigma failure (BOK I.B.2 Part 2)

So, after learning about organisational structures, we discussed which structures have a good chance of project success and which have a lower chance of Six Sigma project success. Now, let us look at what the causes of Six Sigma project failure are. Why do projects fail? When I say they fail, why don't they achieve the objective that they were supposed to achieve? The first reason, or the topreason, is lack of management support. And when I say lack of managementsupport, that comes from management commitment toprovide resources, to provide people. Because you can't do anything if a project requires people's commitment, if this Six Sigma project requires people from different departments to come join and do data analysis, and if these people aren't freed or spared from that department. Your project is bound to fail. And that is where management support comes into the picture. And for this, a strong champion in Six Sigmaorganization is a key to Six Sigma programme success. If you have management support, if you need resources, if you need people, and you get them, your project has a good chance of succeeding. If not, you will undoubtedly fail in your project. Another thing that is similar is management support. Lack of process owner support So if you are looking at one process where the yield is low, but the process owner doesn't support that project, then you probably won't get access to the process. You may not receive information about the process, which may result in the failure of your project. Team member commitment Again, I would say this is bound to a lack of management support. Because if there's management support, you will get team member support. If there is no management support, a team member also might not be giving you the required support to do your Six Sigma project. Incorrect scope is another key thing that leads to project failure. When you decide on a Six Sigma project, that needs to be really nicely sliced. When I say sliced, you can't eat a big pie at a time. You need to cut that into small pieces, the pieces whichyou can digest, which you can eat at a time. So the correct scope would be something that you can successfully complete in two to three months. If you set your sights too high, this will become a never-ending project. These Six Sigma projects will not solve the world's population or hunger problems. You need to go down, take a smaller piece of that, and attempt that. Do a thing that you can do in two to three months, complete that, get the benefits out of that, and then go to the next project. That's how you can successfully implement Six Sigma projects. The next thing is lack of training. People need training, not just the black belt. You need to have people below them green belt," a "yellow belt," and other supporting people who need to be properly trained in Six Sigma methodology. Management needs to be trained. Management needs to know the benefit. Management needs to understand that their support is critical to Six Sigma projects. So the lack of training will definitely lead to project failure. Then coming to the last bullet, which is incorrect project selection, When your project is not rightly selected, and when I say "rightly selected," that means there's no alignment to the strategic goals of the organization. At the end of the day, management is looking at the strategic goals of the organization and what they want to achieve. They want to expand the market share. They want to do more sales. They want to improve the product quality. So unless your project is aligned with that, it's not going to help. It's not going to be successful because you will not be getting the required management support. And if you select a project that has no financial goals, then that is bound to fail, because management is looking at how much money this project will be making. And let me be very clear here. The goal of Six Sigma is not to reduce the facts. It's not to make clients happy. It's not to do anything else. It's just to make more profit. That's where management is interested in it. And that is the reason Six Sigma is successful. play even after 30 years of starting, because Six Sigma's key focus is on financial gains. You improve quality to make more profit. You improve customer satisfaction to get more money into the company. So if your project is not tied to financial goals, I am doubtful that it will be successful, because I doubt that management will give you the support you are expecting. And whatever project you have decided will definitely have a financial goal, you need to look deeper. So even if you are looking at defect rate reduction, you need to convert that into a financial goal. So with that, we complete our discussion on the causes of Six Sigma failure. On the next few slides, let's look at the change management process and how change works. Because if you are doing a SixSigma project, you are changing something. And if you are changing something, you are disturbing people. People who are used to theold practice, you are disturbing them. how to make sure that people support that change. You will learn that in the change management process in the next few slides. Heights.

12. Change Management (BOK I.B.2 Part 3)

Hey, welcome back. One key management topic of which a Six Sigma blackbelt needs to be aware is change management. Whatever improvement projects you undertake in your organisation will, in the end, result in some change. Because if you need to improve something, you need to change something. You cannot improve something by maintaining the status quo. So when it comes to changing things, people don't like that. People like the status quo. If anything changes, people get disturbed. So you need to understand how to manage change because that will decide the success or failure of all the work you have done in your defined phase. Measure phase, analyse phase. And when you come to the implementation phase, you need to be aware of change management. Because without awareness of change management, implementation of those changes might be difficult. So let's look at some basic change management models here. The first one that we have here is Levin's model. If you need to change something, you need to unfreeze something. Unfreeze means accepting that change is needed and making people ready for the change. So that unfreezes us from the status quo. And then you make a change. And change should be accepted by stakeholders, so that's the change part of change management. And then once you have made that change, you need to refreeze that refreeze so that this becomes the norm once the change has been implemented. So for that, you internalise the change. Change becomes routine for people, and then you train people, if there's any need to train, so that people adopt that new way of working. And once they do that, then you can celebrate that the change has been successfully implemented. So this is a very simple method for a change management process. You unfreeze, then you change, and then you refreeze. So that's Levin's model of change management. Let's go a step further and look at another model of change management on the next slide. Just like the previous model, whichwas Levin's model of change. Here we have another model, which is a quarter-eight step-change model. Let's look at these eight steps. Basically, these are similar to the ones we learned earlier in the "Lemons" model, but there is a little bit more detail here. So the first step is to increase urgency,because you need to create urgency so thatpeople need to adopt to that change. Unless there's a reason, change becomes difficult to implement. Urgency could be the falling market share,the falling profit margin, or any sortof thing which creates urgency. Because if the change is not made, the survival of the company might be difficult. So you need to create that sort of urgency. So that's number one step numberone, which is increasing urgency. Then number two is building and guiding the team. Then you need to have a team to makethat change, which in the case of Six Sigma,you would have already had a team doing thatSix Sigma project with the management support. And the third point, or the third step of Qatar's model, is getting the right vision. Management may be able to assist by providing the proper vision. And you can provide the vision with the help of the data that you have collected and the analysis that you have done, which will help in creating a vision for the people that if you make this change, this is going to reduce the defect level by one tenth or something. So that's the sort of vision you need to provide for change to be successful. The step number four is communicate for buy in. Your stakeholders need to buy your vision. That's step number four. And for that, you need to communicate. The fifth step is to empower actions. So you need to empower people to take thoseactions, the actions needed to make that change. And then you create a short-term term wins.At times, you would be looking for the first symptoms of winning. So that's something that you need to create—the first sign of winning that is going to motivate people to move towards your vision of improvement, which you have projected through your Six Sigma project. So you need to create some short wins and then don't let up. You need to keep pressing for the change because, whatever change you make, there's always a tendency for people to go back to the norm, to the previous process. So you need to keep on pressing for the new version or the new process, whatever you have changed. And then once that is done, make it stick. Make sure that the change sticks. And for that, you might need to change your work processes; you might need to provide training to people; or you might need management and communication. Whatever you do, make sure the change sticks. So these are eight quarter points, an eight-step change model. Not all changes are successful. Many times you change something and then later on, if you do not really keep on pressing, you see that people fall back to their original way of working. Here on this slide, we have some factors—some factors that will make sure that the change you are making as part of your Six Sigma project is successful. To make change successful, there are a few bullets here. Let's go through that. The first one is a business case for the change. You need to have a business case for the change. You need to tell people that if we make this change, the percentage defect is going to be this. The delivery time is to be reduced by one-tenth, or the customer satisfaction is going to be two times where we are today. So that business case you need to present to people is going to help people adopt your new method or the recommendations that you are making as part of your Six Sigma project. The second one is that you need to monitor assumptions and risks. So, whatever assumptions you made in your recommendation, when you decided to make the change, you must monitor that, as well as the risks associated with the change. There needs to be effective communication if a change is to be successful, and this is probably one of the biggest key success factors for change management. People need to know why this change is being made, what the benefits of implementing it are, the details of the change, when, where, who, how much, et cetera. People need to know that detail. Who is going to do this now? What is going to happen? Who will be responsible for that? What will be the impact of that on a particular individual? Those things need to be regularly communicated for change to be successful. And then, since you are making a change, you need to provide a new set of skills to people; you need to train them. And then, if you still have some sort of resistance, some sort of hesitation among employees, you need to address that. You need to counter that. You need to provide an explanation of why you believe that this change is going to be good for the organization. And then, in some cases, you may need to provide personal counselling to some key leaders or key people in the organisation to ensure their buy-in. Your key stakeholders need to buy into your change process. And then you need to monitor the change for its implementation. Because just by putting something in a process, just by putting something in work instructions that might not work, you need to monitor the implementation to make sure that whatever you plan as a part of your Six Sigma project, whatever changes you are suggesting, those are effectively being implemented. So these are some of the key factors that you need to address if you want to make sure that the changes are successfully implemented. So let's go through some tools that are required for change management and some tools that can help in the successful implementation of the change. So here we have three tools: One is stakeholder analysis. We talked about stakeholders earlier as well. So let's quickly look at that here. then a readiness assessment, and then a communication plan. These are some of the basic tools that you can use to make sure that the changes you are suggesting are effectively implemented. Let's look at these one by one, starting with stakeholder analysis. So this is something about which we have earlier talked as well, when we talk of stakeholders. Stakeholders are people who are affected by something affected by your organization. So stakeholders here could be something at the core or the owners and managers. Then the next layer of stakeholders are suppliers, customers, employees, and partners. Another layer could be local community associations or media, and then the outermost might be the public. And that depends on how much each of these is affected by the success of the organization. So, as a part of stakeholder analysis, you need to manage these stakeholders. You need to analyse which quadrant they fall into. We talked about that earlier based on what the interests are and what power each of these stakeholders has. Based on that analysis, you need to address the needs of each of the stakeholders. Let's move on to the next slide to look at those four quadrants about which we earlier talked based on the power and interest of stakeholders. So, as I told you, we have already gone through this stakeholder analysis earlier in this course. So the stakeholders are classified based on their interest and the power that they have. If a specific group of stakeholders has a high interest in your Six Sigma project and a high level of power, then you need to manage that group closely because that falls under this group, which is the key player group, which is here. So you need to manage your key players more closely. Simply moving to the opposite quadrant. If a group of people has less power to influence your project and has less interest in it, an example of that could be the public, for example, and they need to be monitored. As a result, that falls under this quadrant. So based on this, you need to manage, and when you are making a change, you need to address the needs of those specific groups of stakeholders. So this was a stakeholder analysis. Let's move on to the next change management tool on the next slide. So here we have another tool for change management, which is readiness assessment. How ready are you or your organisation for the change? You need to do that sort of assessment first. That will help you decide the strategy and how to deal with the changes. So what are the things that are covered in the readiness assessment? The first thing is, is there a clear vision? A clear vision, which you will be showing as a part of your Six Sigma charter, is what your project is going to do. Whether your project reduces the defect rate by one-tenth or not, people will buy it because there will be fewer defects, less trouble, and the company will profit more. Or if your project is going to provide a new process that is going to cut down on cycle time by one fifth, of course people will buy that. So you need to provide a clear vision to the stakeholders. And has the vision been effectively communicated? Of course, just having vision might not be sufficient. You need to communicate that to the respective stakeholders. And are employees willing to change? That will depend on what sort of relationship there is in the company between the union and the management. Or if there's no union, what sort of relationship do employees and management have? So are employees willing to change? So that is something that you need to address. And then our resources are required for the changes available. You need to buy a new machine, you need to buy more raw material, or something. You just need to make sure that there are finances and resources available to make that change. And then you need to make sure that employees are trained for the change. So this is something that you need to assess as part of your readiness. Before you roll out your change plan, you need to do this assessment to make sure that you or your organisation is ready for the change. So here we have a third change management tool, which is a communication plan. You would need to have a specific—and probably written—communication plan when it comes to change management. You list all the stakeholders—those who are affected by your project. So you list your stakeholders here in the stakeholder column. And here, as an example, I have employees who are key stakeholders. The impact of that change is high for employees. You need to decide how much each stakeholder will be affected by that project or that change. So, for example, the media might be having a low impact on this new change. And then you need to decide on what key message you want to convey to that specific stakeholder group. So let's say your new process is going to require more work, or will require your employees to be more careful, or might require your employees to do some additional steps to make that product. Then your key message would be to tell your employees that the economic conditions are poor. That's something which you want to convey, for example, youwant to convey to the employees, for example, the companyfinance situation because of your repair rate, your company islosing money, you need to tell that to your employeesand you need to tell for example, your employees whatis expected recovery, how your project is going to helpin reducing that defect rate. So these are the key messages that you have listed that you need to convey to that specific stakeholder group. And then you need to decide on what the approach is for that approach, which would be a companywide letter from the CEO. That's one option. Another option is for department managers to hold a meeting with the groups or with the employees. And then you might think of having one-on-one meetings as needed. So in this matrix, in this communication plan, you list all the stakeholders, you list what the impact of change is on that group of stakeholders, you list the key message you want to convey to them, and you describe the approach to that process. How would you be conveying the key message to this stakeholder group? So these were the three commonly used tools for change management. So with this, we complete our discussion on the change management process, which you need to understand as an improvement leader and as a Six Sigma black belt.

Organizational Process Management and Measures (BOK II)

1. Introduction - Section 2

Coming to topic number two of the Six Sigma Black Belt course, which is process management and measures In the previous topic, we mainly talked about the planning part. Here we are talking about the measurement part. In measurement, we need to understand how we measure the progress or the success of a Six Sigma project. This particular section will create a foundation for that. What we will learn in this section is that the first thing to consider is the impact on stakeholders. how our Six Sigma project is going to impact stakeholders. Then we will be talking about benchmarking. Benchmarking is the process of finding out what the best-in-class process is and how to adopt that process.We will talk about the types of benchmarking. We will talk about the process of doing benchmarking and the challenges of implementing benchmarking. Then we will come to measurements. How do we measure the performance of that? We could have a balanced scorecard. What is the balance score card?We will learn about that. We will also learn about the lagging and the leading indicators, what these are, and which one we should be choosing. Then we will be talking about financial measures. Any six-sigma project has to produce something financially. It has to make some money for the company. How do we measure that? That will be covered under financial measures. In financial measures, we will be talking about a number of measures, such as return on investment. What does that mean? How do you calculate a return on investment? Payback period; net present value; internal rate of return; benefit; cost ratio. So these are the financial things that we will learn because, at the end of the day, when you have completed your project and when you are presenting this project for implementation, management will be interested in these things. What is the return on investment? So, as part of the Six Sigma project, when you say that we need to spend $100,000 on machine improvement or training, management will be looking for a return on this $100,000 investment that we are making today. Is it beneficial or not? So you need to understand these financial terms. That's what we will be discussing in this section, which is financial measures. So with this basic introduction, let's get started with the first topic in Section 2, which is the impact on stakeholders.

2. Impact of Six Sigma project on Stakeholders (BOK II.A)

Hey, welcome back. We have already talked about stakeholders, the analysis of stakeholders, and putting them in a matrix based on interest and power. We talked about stakeholders in our change management topic as well. This topic must investigate how changes affect these stakeholders. We just need to understand that any Six Sigma project will affect stakeholders. You need to understand what impact it will have on stakeholders, generally in a Six Sigma project. For example, if you look at what the impact of a Six Sigma project will be on the customer, the answer to that is quite obvious. It will give customers a quick delivery, deliverytime, might reduce the defect rate, might reduceit might be safer to use. So all these good things could be impacts of Six Sigma on the customer. Same thing. If you look at the owner and manager, SixSigma would lead to increased profits, a reduction in waste, more customer orders, and more customer satisfaction. But at the end of the day, what it means for owners and managers is increased profit for the organization. So that's the impact of SixSigma on owners and managers. What will be the impact on employees' being an employee?Employees will be more engaged with the work. Because now employees as part of the Six Sigma team or people who are supporting Six Sigma have a bigger say in changing the processes, If something is not working well now as a part of the Six Sigma process, they can raise their voice and ask for a project to change some processes. So that way, your employees are more engaged with the organization. and that helps in increasing employee morale. And in general, like say, if you look at thepublic as a buyer, as a user, definitely will havea positive benefit of Six Sigma project because the productswhich this organisation is making or the service which thisorganization is providing, will be better in quality, will bequicker, will be better, will be safer. So that's probably in a nutshell. I can talk about what will be the general impact of Six Sigma on stakeholders.

3. Benchmarking (BOK II.B)

Hey, welcome back. In this section, we will be talking about benchmarking. As you are doing a Six Sigma project, you are trying to take the performance of the process that you are studying to the highest level. When you want to reduce the defect level, you want to reduce that to the level that the best-in-class companies have. If you are improving the delivery time, you want to improve it to the level that the best-in-class companies have. For example, if you are a local restaurant and start doing home delivery and want to improve your delivery time to the level of Pizza Hutor any other international company that promises to deliver the thing within 30 minutes of order, you should do so. So with that, let's look at the definition of benchmarking and what benchmarking is. Benchmarking is a process of comparing, comparingwhat once processes and performance metrics. For example, in the case of a local restaurant, as we said, the delivery time is one of the processors in the performance matrix that you want to improve, and to what level? Improve it to industry best andbest practises from other companies. So that's what you want to do when you want to benchmark. So with that, let's try to understand what types of benchmarking there are. What is the process of doing benchmarking, and what are the challenges in benchmarking? Let's look at these aspects in the next few slides. So, let's start with the type of benchmarking. There are a number of types of benchmarking, but what I have here are three types of benchmarking that are commonly used. The first one is process benchmarking. When you want to benchmark a process, compare it with the best-in-class process. So you want to, for example, see the delivery process. You want to benchmark your process with the best-in-class company's delivery process. The second type of benchmarking is performance benchmarking. Here, you want to benchmark the features of a product or service. For example, let's say you are a mobile service provider and want to benchmark your download speed against the best in class download speed.So what sort of features and what sort of performance do you have in your product or service that you want to benchmark with the best in class? So, that is performance benchmarking. And the third type of benchmarking here is strategic benchmarking. So strategic benchmarking is related to how you compete with other companies. So these are key types of benchmarking. Then you could benchmark internally with your internal processes or externally with other companies' processes. Let's look at the advantages and disadvantages of internal versus external benchmarking on the next slide. So, if you are doing internal benchmarking, that means within your organisation you have a number of silos, a number of departments, a number of locations, and one specific location or one particular department might be doing the best in the case of a certain process. So what you want to do is benchmark that process for all locations or all departments. For example, if one of your locations has the best delivery time, you want to make sure that all other locations use the same process so that they can also improve their delivery time. So that's internal benchmarking; when looking within the company for the best in class, internal benchmarking is simple because you have access to sensitive information that external benchmarking does not. Because of external organisations, it might not be easy to get sensitive information. And then, for internal benchmarking, there is less time and resources required because you have access to the processes that that particular department, that particular location, which is best in your organization, is using. So you need less time for doing that. And then the gains are also limited. So inside your organization, you might not have a world-class process. So what you have is just the best within your organization, not the word "class." So the gain might also be limited, but it makes sense. Before you go for outside benchmarking,external benchmarking, have a look atinternal because that's easy to do. You don't need permission from that external partner; you don't need access to someone else's information; you can just do it within. So start with internal benchmarking, and then you can look at external benchmarking. So with this, let's move on to the process of benchmarking and the steps in a benchmarking process on the next slide. So here I have sort of a simplified process of benchmarking, what you need to do in benchmarking, and in this process I have put a DMEK process on top of that. So any improvement process can follow a D-make process. D means define, measure, analyze, improve, and control. So let's look at thebenchmarking process from DMC perspective. So when it comes to defining what you want to do in benchmarking, what function do you benchmark? You need to define your benchmarking project. So what is the function to be benchmarked? And then you want to look at the current performance level. This is very important when you want to benchmark with an external company's process; you really need to understand your own process in much more detail. So you need to look at what performance level you are at, and you need to go through step-by-step within your own organisation to learn about your internal process before you start jumping to an outside company and trying to follow their process. So study your process, study your current performance level, and that becomes part of a measurement phase in DMAC. And then you select the best in class, best inclass by your study, looking at databases, seeing that whichcompany does the best, that also could be a partof a measurement process, finding out the best in classcompany or best in class process, then you compare thatwhich is a sort of analysis in case of Dmeg. So that becomes A of Dmeg, which is analyzed, and then we agree on action to achieve or beat the best in class and implement that. So you'd have a number of items and actions based on your visit, and you'd agree on the actions you need to implement based on your review of that external company, and then you'd implement those that are part of Iin D, Mac. Then you must ensure that your benchmark process or your new process is consistently followed. So, for that, you may need to update your processes, work processes, work instructions, or provide training to your employees, which is part of DMAC's monitoring component, which is control. And then you can redo this process over and over again. So that, in summary, is a benchmarking process. What are the challenges in benchmarking? Let's look at that on the next slide. Just like any big change or any big improvement, benchmarking also needs management support. Without management support, your benchmarking is bound to fail. Another thing to look at is that your benchmarking—or whatever process you are benchmarking—needs to be aligned with the strategy of the company. Because there are numerous areas where you can improve. But then whatever process is aligned with the strategy of the company If the strategy of the company is to have faster delivery of goods, then your benchmarking should be looking at the process related to delivery time. Another thing which makes benchmarking fail islack of resources, which in a wayis related to management support. So lack of resources is something related to management support. Having a right team, right teamwith the right mix of people. People from that particular work process—which you want to benchmark— People from the Six Sigma team, as well as change specialists Having those people on the right team will help in the successful implementation of the benchmarking and will also lead to a suitable and willing partner. So this is for external benchmarks. If you are doing external benchmarking, then you need to have a suitable partner or a willing partner who is willing to share the information. I mentioned externally, but it also applies to internally. Also, if there is internal politics, or internal silos where departments or locations do not want to share their information, you must be willing to share. And the last thing here is willingness to change. The organisation should be willing to change. So if you look at the new process, if you go to your benchmarking partner, and you find something, then the organisation should have a willingness to change. Not that whatever we are doing is good, our process is different, or we are unique in our own way. You need to forget about that, and you need to implement whatever the recommendations are. So the willingness to change is another important aspect of Ben.

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