Error-Free® Six Sigma

Copyright, Performance Improvement International, LLC, 2016. Derivative Product Strictly Prohibited.

Error-Free® Six Sigma Program

Performance Improvement International, LLC


Brief History of Six Sigma

• 1986: emergence of Six Sigma as an improvement model at Motorola

• 1988: Motorola wins Malcolm Baldrige National Quality Award

• 1990: Motorola, IBM, Xerox, etc. adopt a Six Sigma model

• 1995 forward: AlliedSignal, GE, FedEx, etc. popularize the approach as a management method


Six Sigma’s DMAIC TechnologyDefine the Customer, their Critical to Quality (CTQ) issues, and the Core Business Process involved.• Define who customers are, what their requirements are for products and services, and what their

expectations are Define project boundaries the stop and start of the process Define the process to be improved by mapping the process flow

Measure the performance of the Core Business Process involved.• Develop a data collection plan for the process Collect data from many sources to determine types

of defects and metrics Compare to customer survey results to determine shortfallAnalyze the data collected and process map to determine root causes of defects and opportunities for improvement.• Identify gaps between current performance and goal performance Prioritize opportunities to

improve Identify sources of variationImprove the target process by designing creative solutions to fix and prevent problems.• Create innovate solutions using technology and discipline Develop and deploy implementation planControl the improvements to keep the process on the new course.• Prevent reverting back to the “old way” Require the development, documentation and

implementation of an ongoing monitoring plan Institutionalize the improvements through the modification of systems and structures (staffing, training, incentives)


Lean Six Sigma

Lean Six Sigma is a methodology that relies on a collaborative team effort to improve performance by systematically removing waste; combining lean manufacturing/lean enterprise and Six Sigma to eliminate the eight kinds of waste (muda):

Time, Inventory, Motion, Waiting, Over production, Over processing, Defects, and Skills (abbreviated as 'TIMWOODS').


Wall Street JournalJan 25, 2010

“Many companies have embraced Six Sigma, a quality-control system designed to tackle problems such as production defects, and lean manufacturing, which aims to remove all processes that don't add value to the final product. But many of those companies have come away less than happy.

Recent studies, for example, suggest that nearly 60% of all corporate Six Sigma initiatives fail to yield the desire results.”


General Electric: A Total Leadership Failure(Forbes. Apr 28, 2015)

“Chairman and CEO Jeffrey Immelt announced last week that his next big step as leader will be to sell off the company’s real estate and the balance financial services businesses. This is a massive $300B asset sale. It follows the very large spin-off of GE’s retail banking unit as Synchrony Financial in 2014 and the sale of the NBC/Universal in 2013.”

“The money is not going into developing any new markets or new products. It is not being used to finance growth of GE at all. It is used to maintain its declining stock market.”


Motorola’s Failures

“In a rare and surprising moment of blunt honesty, Motorola joint-CEO Greg Brown has blamed Motorola's own decisions for the company's decline. While Brown does make the obligatory hat-tip at the economy - for exacerbating the situation - the executive mainly criticizes Motorola's planning, products, and blindness to the changing needs of consumers.”

– Wall Street Journal, 2011


Home Depot

Former Home Depot, CEO Robert Nardelli, was ousted as his strict focus on Six Sigma negatively affected worker morale and consumer sentiment; forcing Home Depot from a top spot amongst major retailers to the bottom of the American Customer Satisfaction Index rankings in 2005. While profitability at Home Deport soared, stock price plummeted.


3M

3M also struggled with Six Sigma. Implemented under CEO James McNerney, a former GE executive who joined 3M after failing to secure Jack Welch's CEO position, Six Sigma seemed promising. Profits initially grew approximately 22 percent a year, but then, languished.

Experts questioned whether McNerney's unyielding emphasis on efficiency stifled 3M's creativity and innovation.


The Missing Part

• Six Sigma (or Lean Six Sigma) is a data-driven, process-oriented quality program. Its DMAIC cycle is reactive, not proactive, let alone predictive. It improves after a “gap” is identified or after events.

• It also heavily relies on process improvement, versus human performance improvement in decision making, problem solving, learning, planning, etc.


10 Human Performance Areas that Have Caused Six Sigma Companies to Fail

1. Decision2. Problem solving3. Planning4. Learning5. Review6. Analytical Modeling7. Negotiation8. Communication9. Risk Mitigation10. Control of knowledge based human performance


Error-Free® Technology

• Error-Free® technology, among other things, addresses the 10 human performance areas that are omitted in the Six Sigma program.

• For each area, the controlling parameters that dictate the success and failures are defined and tracked.

• Human performance and improvement in all 10 areas using DMAIC are managed through Error-Free® Readiness and Results Meters.


ERROR-FREE® PERFORMANCE & OPERATIONS

13


What is Error-Free® Operation and Human Performance?

Error-Free® operation and human performance means no operational or injury events due to preventable human errors.

Over the past 30 years, Dr. Chong Chiu and PII’s more than 50 human and organizational performance experts have taken on numerous R&D and application projects to perfect two new technologies. These two new technologies make the Error-Free® operation and human performance a reality, not, just a slogan.


Two New Technologies that Affect Error-Free® Operation and Human Performance

Predictive Quality

KALETM (Error-Free® Intelligence Software)


What is Predictive Quality?

Know Barrier Failure and Error Rates

During Design and Operation

Know How to Design and Improve the

System Proactively with Focus

Know Controlling Parameters Affecting

Failure Rates and Errors


What is KALETM?KALETM is a cloud-based Error-Free® Intelligence Software, accessible from all devices and operating systems. This Error-Free® integrated tool provides the right information, the right check list, the right procedures, and the right analysis as a SAAS solution to help workers avoid errors or to find root causes of their errors in the most cost-effective way.


Error-Free® Technology’s History(1975-2016)

The Error-Free

Zone®

Path 1 (1975-2006)

Path 2(1990-2011)Path 3

(2000-2009)

Path 4 (2011-now)Path Area (from-and-

end, years of focus)

Breakthroughs based on more than 80,000 data points analyzed by PII for various types of errors and events in various types of jobs and working conditions

1 Errors and events modeling (1975-20015)

WASH-1400 (MT, 1975), PRA technology. Three error types. Swiss cheese model. Prevention, Detection and Correction (PDC) model for implementation (1998). Event probability model (PII, 2006-2015),

2 Causes of and their effects on errors (1990-2011)

WASH-1400 (MIT, 1975) on operator errors. PII’s top 10 error traps based on operation errors (1993). PII’s error reduction training (QV&VSM, STAR, 1996). Situational Brain Insufficiency Model (2008). PII’s 18 shaping factors (2008). PII’s job-specific Error-Free® behavior (2011).

3 Layer of protections and their failure rates(2000-2009)

Job specific and event specific LOP library (2006). Failure rate of LOPs due to intentional errors (2007). Failure of LOPs due to inadequate LOP design (2008). Failures of procedure and work plans (2009).

4 KALE Human performance data bank (2011-2015). Equipment performance data bank (2011-2015). Human Performance Instant Root Cause Analysis (2013-2014). O&P Root cause Analysis (2015). Pre-job Briefing Readiness (2014). Safety Management Readiness (2015). Error Risk Meter (2013)

18


Error-Free® Training Courses• PII has developed a suite of training courses that are

based on solid Error-Free® technology, 100% data driven, and fact-oriented.

• These courses are taught to companies that desire Error-Free® human performance and operation.

• The courses are tailored to individual companies so they are 100% compatible with their existing system, process, and jargon.

• The training courses are perfect supplements to the Six Sigma program that is data driven and process oriented.

Copyright, Performance Improvement International, LLC, 2016. Derivative Product Strictly Prohibited. 21


Contact Us

If you would like to receive more information regarding Error-Free® methodology, technology, and software; please feel free to reach out to us at:

Email: [email protected]: http://PIIOnline.comPhone: (760) 722-0202

22

Error-Free® Six Sigma

Business

Transcript of Error-Free® Six Sigma