Introduction Programme ENBIS and Pro-ENBIS

Introduction

Programme • ENBIS and Pro-ENBIS – Industrial Visits • The Words of Soren Bisgaard • ISRU’s support for Six-Sigma • Then - the Main Speakers – Stories from the Front line – Black and Decker - The Benefits – Motorola - Some Specifics

Dave Stewardson Director of ISRU But also President of ENBIS

ENBIS European Network for Business and Industrial Statistics www. enbis. org

ENBIS Big supporters of Six-Sigma throughout Europe

Vision - To promote the widespread use of sound science driven, applied statistical methods in European business and industry, - That membership consists primarily of statistical practitioners from business and industry, - To emphasize multidisciplinary problem solving involving statistics, - To facilitate the rapid transfer of statistical methods and related technologies to and from business and industry

Vision – continued - To link academic teaching and research in statistics with industrial and business practice, - To facilitate and sponsor continuing professional development, - To keep its membership up to date in the field of statistics and related technologies, - To seek collaborative agreements with related organizations. - ENBIS is a web based society

Organisation Working groups - Design of experiments - Process modelling and Reliability and safety control Data mining / warehousing - Quality improvement General statistical modelling - Statistical consultancy Local networks - b. ENBIS (Belgium) - n. ENBIS (Netherlands) - i. ENBIS (Israel)

Organisation Members - No membership fee (for the time being) - 500 members (May, 2002) Corporate Members - 500 Euros per annum - 7 Corporate members (May, 2002)

Membership benefits ENBIS offers its members: -Network facilities -Conferences -Courses -Thematic network Pro-ENBIS

Networking facilities The website www. enbis. org offers: -ENBIS News -General announcements -Event lists -Links to relevant websites -Information on other members -Forum facilities

www. enbis. org

Pro-ENBIS is a thematic network of organisations contracted for three years with the European Commission. Its mission is “to promote the widespread use of sound science driven, applied statistical methods in European business and industry. ” Pro-ENBIS was granted a budget from the EC of about 800 000 Euros.

Pro-ENBIS Aims include: Start a European Training Network Found European Measurement System Audit Draft new European Journal - web-based Inorgorate a European Business-to-Business Mentoring Scheme Publish a ‘State-of-the-Art’ report on the use of Industrial Statistics in Europe Access further funding to promote ENBIS

Pro-ENBIS Training Network now has more than 50 participants Push to help implement Six-Sigma throughout Europe - this is a massive resource. Including the non-EC states!

Pro-ENBIS Planned ‘Workshops’ for 2003: Sardinia alongside DEINDE conference on Designed experiments - February Maastrict (Netherlands) alongside ESREL reliability conference - June Currently planning UK based Workshop

ENBIS industrial visit Siemens Electric Heating AS Bratsbergvegan 5 N-7493 TRONDHEIM Norway 21/6/2002 Tel No +47 73 95 90 00

ENBIS team Jon Tyssedal, tyssedal@math. ntnu. no Professor of Statistics, NTNU Expert in Statistics Maria Fernanda Ramalhoto, framalhoto@math. ist. utl. pt Professor of Statistics, Instituto Superior Tecnico, Lisbon Expert in Reliability and Quality Improvement Ron Kenett, ron@kpa. co. il International Management Consultant, CEO KPA Ltd. Expert in Industrial Statistics and Quality Management

Six-Sigma and Reliability For Nestle Dave Stewardson - ISRU with Froydis Berke - Matforsk Norway Soren Bisgaard - USA Poul Thyregod - Denmark Bo Bergman - Sweden

Pro-Enbis All joint authors - presenters- are members of: Pro-Enbis and ENBIS. This presentation is supported by Pro-Enbis a Thematic Network funded under the ‘Growth’ programme of the European Commission’s 5 th Framework research programme - contract number G 6 RT-CT-2001 -05059

Brief Example of Content

Rational for Six-Sigma Improve processes Team - project based improvement Properly costed benefits Grow your own expertise Visible success Use of modern improvement tools

Rational for Modern Maintenance Preventative maintenance Condition monitoring Better planning Less machine downtime Operators monitor machine and process condition

Rationales Fit! Everyone is involved Monitoring - to help operators get better control over the process Publicise success

Soren Bisgaard Leading Industrial Statistician Extract from Presentation

The “Success” of Change Programs? “Performance improvement efforts … have as much impact on operational and financial results as a ceremonial rain dance has on the weather” Schaffer and Thomson, Harvard Business Review (1992)

Change Management: Two Alternative Approaches Activity Based Programs Change Management Result Oriented Programs Reference: Schaffer and Thomson, HBR, Jan-Feb. 1992

Activity Centered Programs • Activity Centered Programs: The pursuit of activities that sound good, but contribute little to the bottom line • Assumption: If we carry out enough of the “right” activities, performance improvements will follow – This many people have been trained – This many companies have been certified • Bias Towards Orthodoxy: Weak or no empirical evidence to assess the relationship between efforts and results

An Alternative: Result-Driven Improvement Programs • Result-Driven Programs: Focus on achieving specific, measurable, operational improvements within a few months • Examples of specific measurable goals: – Increase yield – Reduce delivery time – Increase inventory turns – Improved customer satisfaction – Reduce product development time

Result Oriented Programs: • • • Project based Experimental Guided by empirical evidence Measurable results Easier to assess cause and effect Cascading strategy

Why Transformation Efforts Fail! • John Kotter, Professor, Harvard Business School • Leading scholar on Change Management • Lists 8 common errors in managing change, two of which are: • Not establishing a sense of urgency • Not systematically planning for and creating short term wins

Six Sigma Demystified* – Alignment of customers, strategy, process and people – Significant measurable business results – Large scale deployment of advanced quality and statistical tools – Data based, quantitative *Adapted from Zinkgraf (1999), Sigma Breakthrough Technologies Inc. , Austin, TX.

Keys to Success* • Set clear expectations for results • Measure the progress (metrics) • Manage for results *Adapted from Zinkgraf (1999), Sigma Breakthrough Technologies Inc. , Austin, TX.

Six Sigma • The precise definition of Six Sigma is not important; the content of the program is • A disciplined quantitative approach for improvement of defined metrics • Can be applied to all business processes, manufacturing, finance and services

Focus of Six Sigma* • Accelerating fast breakthrough performance • Significant financial results in 4 -8 months • Ensuring Six Sigma is an extension of the Corporate culture, not the program of the month • Results first, then culture change! *Adapted from Zinkgraf (1999), Sigma Breakthrough Technologies Inc. , Austin, TX.

Six Sigma: Reasons for Success • The Success at Motorola, GE and Allied. Signal has been attributed to: – Strong leadership (Jack Welch, Larry Bossidy etc. personally involved) – Initial focus on operations – Aggressive project selection (potential savings in cost of poor quality > $50, 000/year) – Training the right people

Web-page example: From Quality Digest By Thomas Pyzdek a consultant in Six Sigma. http: //www. qualitydigest. com/june 0 1/html/sixsigma. html

ISRU’s Support for Six-Sigma

Hands-on Support for Champions Black. Belts and Master Blackbelts Full Six-Sigma programme from October - Black Belt - Green Belt - Yellow Belt training and support This is VERY market / customer driven Plus - access to on-line support

Keys to Success Mark II 1. Need to overcome demands on peoples time 2. Need to overcome reluctance to try new methods - fear of failure 3. Must be allowed to discover that the key methods are self correcting! In other words - you can’t really fail at all

ISRU - On-Line Modules

Blackboard 5. . . • is a comprehensive and flexible elearning software platform • has evolved from Blackboard’s award winning software

ISRU’s Courses ISRU have 3 certified courses available on Blackboard: • Do. E • MQT • SPC (Design of Experiments) (Modern Quality Tools) (Statistical Process Control)

Course package • • • Announcements Course information Staff information Course documents Assignments Books Communication External links Tools

Course information 1. Detailed course material 2. Video clips

Staff information. . . • Provides background and contact information on course instructors • These instructors are available Mon-Fri 9 am-5 pm to provide continued support

Course documents • 5 minute self assessment memory tests • Excel self assessment tests • Minitab self assessment tests

Assignments • Not marked automatically • Similar in style to the self assessments • Once completed a certificate is awarded

Communication • E-mail • Discussion Board - Company to Company swapping of ideas and experiences • Virtual Classroom

Tools • • Course calendar Tasks My grades Address book • and more. . .

Follow-Up If you need further details of: ENBIS Pro-ENBIS On-Line-Support Contact us any time

Now The main event!!