BPMS 01 Overview

CustomerFocusedSixSigmaBPMSOverviewBusinessProcessManagement1-2WhatdoesBPMSmeanforYou?TheStrategicComponentofSixSigmaAwayforalldepartmentstobeactivelyinvolvedandalignedintheiractionstosatisfycustomersAwaytoalignproblemsolvingresourcestosolvecriticalcustomerissues“ProcessesarethebasicvocabularyofSixSigma”GeneralElectric1-3GettingMoreResultsfromSixSigmaForseveralyears,companieshaveusedBusinessProcessManagementtoimproveandmanagekeybusinessprocesses.Theyhavelaunchedspecificcustomer-focusedprojectsasanaturalextensionofprocessimprovement.GEbrokethemold,andlaunchedspecificprojectsinparallelwithprocessimprovementThisistheapproachthatweareencouragingSamsungCorningtotake.1-4HistoryofSuccessfulSixSigmaDeployment1-5Mr.Welch’sStory“Thefirstyear,weusedSixSigmatoattackcosts,improveproductivity,andfixbrokenprocesses.In1997weachieved$320millioninproductivitygainsandprofitBy1998,wehadgenerated$750millioninSixSigmasavingsandgot$1.5billionin1999.Ouroperatingmarginswentfrom14.8percentin1996to18percentin2000.”1-6Mr.Welchcontinues….“ThenextphasewastouseSixSigmatoolstofixanddesignnewproducts”GEPowerSystemscustomerswereexperiencingPowerDownsituationswithregularity.GEredesignedandreducedunplanneddowntimefrom33%to0onthelast210unitsproducedsince.GEMedicallaunchedanewCTscannerwithreducedMRIproceduresfrom3minutesto17seconds.”1-7FunctionallyFocusedSixSigmaProjectSelection•Mostorganizationsaremeasuredby“functions”•SixSigmasuccessislargelywithinfunctions•Executivesmayoperateasateambutarefocused,individually,onthefunctions.Strategy&ActionSalesFinanceMarketingHumanResourcesPurchasingManufacturingProductDevelopmentFunctionsCustomers?$$SixSigmaProjectSavings$$1-8Mr.Welchcontinues…stillnotenough“Ourcustomersweretellingusthattheyfeltnodifferenceinquality.”25201510501050Span1FrequencyDeliveryTime2520151050151050Span2FrequencyDeliveryTimeCompanyishappy…..ButCustomerstilldoesn’treceivereliabledeliveries!1-9Mr.Welchcontinues-nowCustomerNoticesThecustomerneedsreliabledeliveryasmuchasshortcycletimesNowthecustomerishappy!2520151050403020100Span3FrequencyDeliveryTimeCustomerProcessYourProcessCABCustomerViewHowdidtheperformanceofmysupplieraffectmytotalprocessperformance?YourViewTwoViewsofPerformanceHowdidweconformtothecustomer’srequirement?AttheCustomerFortheCustomer(ACFC)1-11AtTheCustomerFortheCustomer1-12ACFCMetrics•GEAircraftEnginesnolongerfocusesjustonhowlongittakestorepairanengineforanairlinecustomer.•Themeasurethatcountsis“wingtowing”--howlongittakesfromthetimetheenginecomesoffanairplane’swinguntilitisreplaced--sincethatishowlongtheairplaneisoutofservice•ActualGErepairtime=½halfthewing-to-wingtime•GEhasstartedaprojecttohelpairlinecustomersattacktheother½ofthetotalwing-to-wingtime1-13ACFCMetrics•GECapitalfoundaprobleminitsbusinessunitthatprovidesfinancingtoofficeequipmentdealers•FirstGECapitalreduceditsinternalcycletimeforfinancingapprovalfrom2daystoafewhours•Butthebiggerissuewasthatequipmentdealershada47daycycletimeforAR•GEhashelpedthesedealerstoredesigntheirbilling&collectionprocesses,andhasdriventhetimedownto25days.•GECapitalisconsideredaProcessEnterprise1-14WhatisaProcessEnterprise?ThereisasmuchallegiancetoprocessesastofunctionsEmployeesinternalizeprocessgoalsEmployeesunderstandhowtheprocessisperformingEveryoneknowscustomerrequirementsandstrivestomeetthemEmployeeshelpmanageeachotherinsteadofescalatingconflictsProcessesaremeasuredObjectively–andfrequentlyGECapital1-15Customer-FocusedProjectSelectionFunctionalIntegrationandLine-of-SighttotheCustomer•Customersseeusthroughourbusinessprocesses•Productsandservicesforcustomersarebyprocesseswhichcrossdepartmentallines•ThiswillbethefocusofourworkinBPMS..ToaligndepartmentalprocessestofocusoncustomersStrategy&ActionSalesFinanceMarketingHumanResourcesPurchasingManufacturingProductDevelopmentCrossFunctionalProcessCustomers$$SixSigmaProjectSavings$$1-16BPMSFramework1-17SixSigmaandBusinessProcessFocus6smakeseachprocessefficientandeffective,......BusinessProcessManagementSystems(BPMS)connectsthoseprocessesintoachainfocusedonflowandcreatingvalueforthecustomerCreatingAConsistentValueChainforCustomers!EngineeringSuppliersOperationTestSupportCustomer6s6s6s6sAdministrationTraditionalSixSigmaRoll-OutEngineeringOperationTestAdministrationMaterialsSupport6s6s6s6s6s6s6s6sSuppliersCustomerSixSigma/CoreProcessfocus1-18MethodologiesforManagingPerformance•ProcessManagement(BPMS)•BusinessCase•Improvement(DMAIC)Customer/Shareholder/StakeholderRequirementsPerformanceBusinessStrategyCoreandEnablingProcessGoalsBusinessResultsCTQsProcessPerformanceMeasuresBusinessProcessesResourcesforDrivingPerformance•Corp.LeadershipTeam(CLT)•Champions•SixSigmaTeams.•ProcessOwners•ProcessTeamsGeneralElectric’sIntegratedProcessApproachtoBPMS1-19BPMSatCorporateLevelPackagingConsolidationSub-assemblySequencingImportServicesJITpickup/deliveryInventoryMgtKittingSequencingSub-assemblySupplierConformanceCarrierMgt.Materialfollow-upWIPtransportFacilityDesignYardManagementQualityAssuranceDCOperationsInventoryMgt.