Sustaining a Lean Six Sigma Program During a Business Transition

1
Sustaining a Lean Six Sigma Program During a
Business Transition

• WCBF Lean Six Sigma Summit June 25, 2009

2
The Transition and our initial thoughts

• August 2007 GE Plastics becomes SABIC
  Innovative Plastics
• How will Lean Six Sigma be valued in the new
  company?
• Will we need to adopt a different quality system
  / process?
• What if certifications are no longer seen as an
  attractive career option by employees?
• We can tailor our Lean Six Sigma program to our
  Plastics business
• We can update all of our training materials
• We have the opportunity to spread Lean Six Sigma
  to the parent company

3
The Approach

• Lets do what we do best use Lean Six Sigma
  methodology and tools to help us through the
  transition!
• DFSS approach and CAP were used to
• Sustain and upgrade our Lean Six Sigma program as
  we move into the new company
• Improve our BB training materials and
  certification requirements

4
Ensure LEAN Six Sigma in SABIC Innovative Plastics
Design
Analyze
Measure
Define
Verify
Control
Define problem statement
Identify Current State (BB)
Define business vision
Perform Treats vs Opportunities
Define External CTQ's
Define validation on internal CTQs
Determine resources time required (BB)
Define detailed roles and responsibilities
Identify Core business processes
Scope
Translation package to WB, GB, MBB
Value Stream Map new process
Design process improvements (BB)
Analyze Threats vs opportunities
Identify internal and project CTQs
Develop core project team
Final validation of project CTQ's
Implement new process with RRs (BB)
Design new training materials (BB)
Define detailed desired state process
Implement communication plan
Stakeholder analysis
Transition to business ownership
Measure project progress
Fit/gap analysis versus Legal requirements
Define process improvement and fit/gap analysis
Define high level roles responsibilities
Develop High Level Communication Plan
Implement Control Plan
Update Implement requirements (BB)
Select critical spin-off projects
Define training requirements (BB)
Define Business Requirements
Project Timeline and project plan
Recommendations to management
Implement Digitized Solution
Build and test new structure
Benchmark others (BB)
Risk Abatement update
Risk Abatement plan
Best practices tools identified
Risk Abatement update
Risk Abatement update
Risk Abatement update
5
Ensure LEAN Six Sigma in SABIC Innovative Plastics
Define
Problem Statement
Define problem statement
Define business vision
The continuance of the Lean Six Sigma program in
Plastics is uncertain as we transition to a new
parent company. We must sell the value of our
program so that is can at least continue in our
business unit, if not expand into the parent
company.
Define External CTQ's
Scope
Develop core project team
Stakeholder analysis
Develop High Level Communication Plan
Project Timeline and project plan
Risk Abatement plan
6
Ensure LEAN Six Sigma in SABIC Innovative Plastics
Define
Business Vision - To increase Six Sigma and LEAN
skills across our business through company
wide trainings and mentoring programs. - To work
together with Master Black Belts and Black Belts
to optimize training to the specific needs of
our business processes and customers. - To
change the initiative from a corporate push to a
business pull - To identify cross-business
and cross-functional process improvement
initiatives that will drive growth, customer
satisfaction and simplicity. Marcel A.
Kranenburg Quality Director SABIC
Innovative Plastics
Define problem statement
Define business vision
Define External CTQ's
Scope
Develop core project team
Stakeholder analysis
Develop High Level Communication Plan
Project Timeline and project plan
Risk Abatement plan
7
Ensure LEAN Six Sigma in SABIC Innovative Plastics
Define

• External CTQs
• Business impact
• Certificates
• Recognition
• Effective training material
• Meet functional requirements
• Accessibility

Define problem statement
Define business vision
Define External CTQ's
Scope
Develop core project team
Stakeholder analysis
Develop High Level Communication Plan
Project Timeline and project plan
Risk Abatement plan
8
Ensure LEAN Six Sigma in SABIC Innovative Plastics
Define

• In Scope
• SABIC Innovative Plastics
• All functions
• Basic requirements
• BB/GB/MBB training material
• Out of Scope
• Silicones
• Quartz
• GE businesses
• SABIC

Define problem statement
Define business vision
Define External CTQ's
Scope
Develop core project team
Stakeholder analysis
Develop High Level Communication Plan
Project Timeline and project plan
Risk Abatement plan
9
Ensure LEAN Six Sigma in SABIC Innovative Plastics
Define
Core Project Team
Define problem statement
Define business vision
Define External CTQ's
Scope
Develop core project team
Stakeholder analysis
Develop High Level Communication Plan
Technology 2 Americas 10 Manufacturing 9 Euro
pe 5 Quality 5 Pacific
6 Supply Chain 3 Commercial 1 IT 1
Project Timeline and project plan
Risk Abatement plan
Strong Functional Participation Needed to Design
Drive Future State
10
Lean Six Sigma in SABIC Innovative PlasticsTG2

• Driving Business Process Improvement

11
Ensure LEAN Six Sigma in SABIC Innovative Plastics
Measure
Black Belt Current State
Certification call
Identify Current State (BB)
BB DMAIC Training Weeks 1-3
Two projects BB Exams
Perform Treats vs Opportunities
Prep for certification
BB Cert
Identify Core business processes
Certification board Decides whether BB met
requirements
Identify internal and project CTQs
Implement communication plan

• 4-9 months before BB is fully trained
• Unclear certification (call) requirements
• Increased coaching in last 2 months of period
• Training material too much focused on how
• BB measured on how instead of what
• MBB coaching mainly in certification projects

Define high level roles responsibilities
Define Business Requirements
Risk Abatement update
12
Ensure LEAN Six Sigma in SABIC Innovative Plastics
Measure
GEPlastics
Threat Compelling Us to Leavethis Current State
Opportunity Attracting Us Toward this Future
State
Identify Current State (BB)
Perform Treats vs Opportunities
Identify Core business processes
Short Term
Identify internal and project CTQs
Implement communication plan
Define high level roles responsibilities
LongTerm
Define Business Requirements
Risk Abatement update
0-30 days
13
Ensure LEAN Six Sigma in SABIC Innovative Plastics
Measure
Identify Current State (BB)
Perform Treats vs Opportunities
Identify Core business processes
Identify internal and project CTQs
Implement communication plan
Define high level roles responsibilities
Define Business Requirements
Risk Abatement update
PAC
TECH

USA

EUR
14
Ensure LEAN Six Sigma in SABIC Innovative Plastics
Analyze
Short term threats
Define detailed roles and responsibilities
Analyze Threats vs opportunities
Define detailed desired state process
Define process improvement and fit/gap analysis
Define training requirements (BB)
Benchmark others (BB)
Risk Abatement update
15
Ensure LEAN Six Sigma in SABIC Innovative Plastics
Analyze
Long term threats
Define detailed roles and responsibilities
Analyze Threats vs opportunities
Define detailed desired state process
Define process improvement and fit/gap analysis
Define training requirements (BB)
Benchmark others (BB)
Risk Abatement update
16
Ensure LEAN Six Sigma in SABIC Innovative Plastics
Analyze
Short term opportunities
Define detailed roles and responsibilities
Analyze Threats vs opportunities
Define detailed desired state process
Define process improvement and fit/gap analysis
Define training requirements (BB)
Benchmark others (BB)
Risk Abatement update
17
Ensure LEAN Six Sigma in SABIC Innovative Plastics
Analyze
Long term opportunities
Define detailed roles and responsibilities
Analyze Threats vs opportunities
Define detailed desired state process
Define process improvement and fit/gap analysis
Define training requirements (BB)
Benchmark others (BB)
Risk Abatement update
18
Ensure LEAN Six Sigma in SABIC Innovative Plastics
Analyze
Black Belt Desired State

• 4-9 months before BB is fully trained
• Unclear certification (call) requirements
• Increased coaching in last 2 months of period
• Training material too much focused on how
• BB measured on how instead of what
• MBB coaching mainly in certification projects

Define detailed roles and responsibilities
Analyze Threats vs opportunities
Define detailed desired state process
Define process improvement and fit/gap analysis

• 4-6 months before BB is fully trained
• Base requirements, plus additional functional
  requirements
• Continuous coaching
• Balanced training materials
• BB measured on what and how
• MBB coaching across all of the BBs deliverables

Define training requirements (BB)
Benchmark others (BB)
Risk Abatement update
19
Lean Six Sigma in SABIC Innovative
PlasticsWhat did we accomplish? TG5

• Driving Business Process Improvement

20
New training and coaching process
BB 5 day Power workshop exam
BB 3 day Power workshop
Addl Training by Function Technology 2 weeks
of BB-DFSS
DFSS
LEAN
Design
EVOP
BB Cert

• Deliver real business improvements
• Variety of DMAIC, DFSS, LEAN, or individual tool
  usage
• Strong focus on GOs, Participation in GB/BB
  trainings coaching

General manager and MBB decide whether BB
delivered significant sustainable business
improvement

• Increased effectiveness of training material
• Training focused on Business Process Improvement
• Approaches CAP, AWO, DFSS, DMAIC, JDI
• Tools LEAN, DOE, ANOVA, etc
• BB coached measured on What as well as How
• Additional training provided when needed

21
New Black Belt Power Workshop

• Day 1 Methodologies (DMAIC, DFSS, Lean)
• Day 2 DMAIC
• Day 3 LEAN
• Day 4 Tools (Regression, Hyp. Testing, DOE)
• Day 5 Business Process Improvement

22
Our own training materials

• White Belt workshop (1-day)
• Green Belt workshop (3.5 day)
• Black Belt Power workshop (5-day)
• Black Belt Power plus workshop (3-day)
• DFSS (upgraded)
• Robust Design (upgraded)

23
Our Own Brand
Joe Regression
Ima Geek
Norm Al Data
24
Summary
Outcomes Lessons Learned
Issues Still

• Functionally-tailored certification process
• Fresh new training materials
• 10 new Black Belts in the parent company!
• We didnt need to wait for a major business
  reorganization to make many of our improvements
  but it was a catalyst
• Using our Lean Six Sigma methodology tools
  helped us transition to a new world (as always,
  THEY WORK!)

• Maintaining common expectations and experiences
  for our employees on SABIC Innovative Plastics
  sites versus GE sites
• Six Sigma training usage has fallen off in
  recent years particularly outside of Technology
  and Manufacturing

25
Questions?

• WCBF Lean Six Sigma Summit June 25, 2009