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Six Sigma EPM – Version 2 MPUG Demonstration 5/4/2004 Phoenix, Arizona Wayne Mac. Donald Six Sigma EPM – Version 2 MPUG Demonstration 5/4/2004 Phoenix, Arizona Wayne Mac. Donald Senior Principal wayne. macdonald@immedient. com

Agenda • Overview of Six Sigma – What it is – How it’s done Agenda • Overview of Six Sigma – What it is – How it’s done • The Six Sigma Accelerator – What it does – Who wants to use it • Features, Functions and Specifications • Additional Information

What is Six Sigma • Developed at Motorola • Provided Granularity for Measuring Defects What is Six Sigma • Developed at Motorola • Provided Granularity for Measuring Defects • Motorola Created the Methodology and Culture Change Required • Definitions Vary

What is Six Sigma • Statistical Process Management Methodology • Standard Deviation from the What is Six Sigma • Statistical Process Management Methodology • Standard Deviation from the Mean s Process Capability 2 3 4 5 6 308, 537 66, 807 6, 210 233 3. 4 PPM Defects per Million Opp.

99% (3. 8 Sigma) 99. 99966% (6 Sigma) • 20, 000 lost articles of 99% (3. 8 Sigma) 99. 99966% (6 Sigma) • 20, 000 lost articles of mail per hour • Seven articles lost per hour • Unsafe drinking water for almost 15 minutes each day • One unsafe minute every seven months • 5, 000 incorrect surgical operations per week • 1. 7 incorrect operations per week • Two short or long landings at most major airports each day • One short or long landing every five years • 200, 000 wrong drug prescriptions each year • 68 wrong prescriptions per year • No electricity for almost seven hours each month • One hour without electricity every 34 years

Methodologies • DMAIC – Define – Measure – Analyze – Improve – Control Methodologies • DMAIC – Define – Measure – Analyze – Improve – Control

Copyright 2003 by Thomas Pyzdek Copyright 2003 by Thomas Pyzdek

Methodologies • DMADV – Define – Measure – Analyze – Design – Verify • Methodologies • DMADV – Define – Measure – Analyze – Design – Verify • DFSS – Design for Six Sigma • CMM Level 4 and Level 5

What is an Accelerator An integrated set of products, services, and Microsoft authored guidance What is an Accelerator An integrated set of products, services, and Microsoft authored guidance designed to solve specific customer business problems

Who Uses the Accelerator Champion Master Black Belt Is responsible for coordinating a business Who Uses the Accelerator Champion Master Black Belt Is responsible for coordinating a business roadmap to achieve Six Sigma. Selects projects, executes control, and alleviates roadblocks for the Six Sigma projects. Is mentor, trainer, and coach of Black Belts and others in the organization. Brings the broad organization up to the required Six Sigma competency level. Black Belts and Green Belts Financial Controllers Team Members (Suppliers / Process Owners) Is a leader of teams implementing the Six Sigma methodology on projects. Uses more sophisticated statistical tools to help team members and the broader organization. Tracks the improvement savings and costs. Participates on the project teams. Supports the goals of the project, typically in the context of his or her existing responsibilities.

Typical Roles Six Sigma Role Microsoft Project Server Group Corp VP of Six Sigma Typical Roles Six Sigma Role Microsoft Project Server Group Corp VP of Six Sigma Executives Site VP of Six Sigma Executives Master Black Belt Project Managers Green Belt Project Managers Team Member Champion Executives Stakeholder Executives Finance Executives Executive Sponsor Executives HR Representative Executives Six Sigma Office Administrators

Why Use the Accelerator • Project Tracking – How many projects are in progress Why Use the Accelerator • Project Tracking – How many projects are in progress – What are their critical milestones – What is the current status – When do they complete • Financial Results Tracking – What are the targeted savings for this project – How are they measured – Where are they tracked

Why Use the Accelerator • Six Sigma Reporting – What is the reporting cycle Why Use the Accelerator • Six Sigma Reporting – What is the reporting cycle – Who gathers reports – What is the project initiation (hopper) process • Resource Management – Which BB’s and GB’s are assigned to projects – When do they become available for another project

Why Use the Accelerator • Strategic Alignment – What is the portfolio of project Why Use the Accelerator • Strategic Alignment – What is the portfolio of project – How do those projects support our objectives • Institutionalize Processes – Are all my BB’s and GB’s using the same tools – When the tools are improved, how are they distributed – What is the friction free way of distributing those tools

Important to EPM, Not Six Sigma • No Earned Value! – % Complete is Important to EPM, Not Six Sigma • No Earned Value! – % Complete is Good Enough • Minimal Interest in Resource Utilization – Manage to the Delivery Dates – SWAG the BB / GB Run Rate • Don’t Assign Team Members – BB / GB do most of the work and reporting • No Risk, Action Items – Do the work, by a certain date

Immedient’s Six Sigma Solution • Promotes standards and collaboration across the organization – Consistent Immedient’s Six Sigma Solution • Promotes standards and collaboration across the organization – Consistent use of methodologies and tools • Easy to use project guides and tailored interfaces • Project templates, including DMAIC – Centralized archive of project data • Promotes collaboration across the business • Leverages successes and best practices

Immedient’s Six Sigma Solution • Delivers increased visibility and control – Flexible, real-time project Immedient’s Six Sigma Solution • Delivers increased visibility and control – Flexible, real-time project and portfolio reporting – Powerful, easy-to-use portfolio analysis tools – Improve risk management and project success – Aligns project with business

Product Architecture by Role Green Belts Execs, Champions, Team Members Master Black Belts, Black Product Architecture by Role Green Belts Execs, Champions, Team Members Master Black Belts, Black Belts *Green Belts need Project Professional if scheduling and resourcing features are required

Role Based Views Black Belts Green Belts Master Black Belts Team Members Microsoft Project Role Based Views Black Belts Green Belts Master Black Belts Team Members Microsoft Project Professional 2003 Microsoft Project 2003 Server Executives / Champions Microsoft Project Web Access Centralized Tailored Interfaces

Key Features • Project Collaboration à Project Management Tool à Role Based Views à Key Features • Project Collaboration à Project Management Tool à Role Based Views à Team Collaboration Site à Project Guides & Help à DMAIC Project Templates à Six Sigma Tool Management • Financial Results Tracking à Financials Module • Project Pipeline à Project Selection • Data Assistant à Power. Point Reporting • Six Sigma Reporting à Automated Dashboards à Analysis Tools • Training Reinforcement, Process Guidance, & Automation

Project Guides • Helps Green Belts and Black Belts – Navigate the project plan Project Guides • Helps Green Belts and Black Belts – Navigate the project plan – Directly access common features • Context Sensitive Help – Features & Tools – Policies & Best Practices Ease of Use

Project & Tool Templates • Central “Library” – Project Templates – Six Sigma Tool Project & Tool Templates • Central “Library” – Project Templates – Six Sigma Tool Templates • Embody Corporate Standards and Best Practices • Centrally maintained • Ready access to most current versions • Automatically copies Tools to new project Process Control

Financials Module • Track Benefits and Expenses by Project • Customized “Chart of Accounts” Financials Module • Track Benefits and Expenses by Project • Customized “Chart of Accounts” (Categories, Sub-categories, etc. ) • Roll-up across Projects for Reporting & Analysis • Each Financial Metric has monthly / weekly: – Baseline – Actual – Forecast Consistent Tracking

Financial Module • What are Financial Groupings? – Savings and Cost Avoidance containing Labor, Financial Module • What are Financial Groupings? – Savings and Cost Avoidance containing Labor, Material, & Other – Define outline levels of metrics in Categories. – Rollup metric values to critical reporting classifications

Reporting & Analysis • Project Reports – Manual Status Reports – Financial Benefits/Expenses, Variances Reporting & Analysis • Project Reports – Manual Status Reports – Financial Benefits/Expenses, Variances • Portfolio Analysis – – Customizable Dashboards Interactive Analysis Charts & Graphs Resource Reports & Analysis • Power. Point Generation Visibility & Insight

New Feature: Data Assistant • Pull Excel objects & tables into a “Gallery” • New Feature: Data Assistant • Pull Excel objects & tables into a “Gallery” • Snap objects selected from the Gallery into Power. Point using pre-defined slide layouts • Data refreshes with most current every time the Power. Point presentation is opened • Requires Microsoft Office Powerpoint 2003

New Feature: Data Assistant New Feature: Data Assistant

New Feature: Project Selection • Project idea pipeline management • Enter project ideas • New Feature: Project Selection • Project idea pipeline management • Enter project ideas • Iterative “flesh out”, scoring, scheduling • Dashboards for pipeline management • Requires Microsoft Office Info. Path

New Feature: Project Selection New Feature: Project Selection

New Feature: Project Selection New Feature: Project Selection

Outlook Integration • Email notification w/ hyperlink to PWA • Automatically inserts meeting reminder Outlook Integration • Email notification w/ hyperlink to PWA • Automatically inserts meeting reminder • Team members can update % Complete directly in the meeting record

New Feature: Outlook Integration New Feature: Outlook Integration

Software Requirements • Required Server Software – – – Windows Server 2003 Windows Share. Software Requirements • Required Server Software – – – Windows Server 2003 Windows Share. Point Services Office Project Server 2003 SQL Server 2000. NET Framework • Optional Server Software – Share. Point Portal Server 2003 – Exchange 2003 – Biz. Talk Server 2004 • Required Client Software – Project Professional 2003 (Project – – Mgr’s only) Project Web Access Info. Path 2003 Internet Explorer 5. 01 or later Microsoft Windows 2000 or later • Optional Client Software – Microsoft Windows XP – Microsoft Office 2003

Benefit Calculation of the Accelerator Average-size DMAIC/DFSS project ($ benefit) $150 k Average # Benefit Calculation of the Accelerator Average-size DMAIC/DFSS project ($ benefit) $150 k Average # DMAIC/DFSS projects (per year) 250 Projected productivity improvement 8% Projected incremental # projects (per year) Projected incremental benefit ($ per year) 20 $3 M

Why Immedient • Experienced EPM Delivery • Experienced Six Sigma Delivery • Analyzes your Why Immedient • Experienced EPM Delivery • Experienced Six Sigma Delivery • Analyzes your goals and configures specifically to solve real-world business problems • Systems Integrator – in business for 16 years, 8 national offices

Accelerating Results – July 21, 2004 • A Six Sigma Management System – Motorola Accelerating Results – July 21, 2004 • A Six Sigma Management System – Motorola University and Immedient • How to implement Six Sigma as a Management System for your company • How to institutionalize your departmental Six Sigma program • How to improve the productivity of your Six Sigma Teams • How to manage your Six Sigma portfolio