Top Reasons SS Project Fail

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The Top ReasonsSix Sigma Projects Fail

Ross FarrellyCommercial Sales RepMinitab Pty.

AOQ Six Sigma ConferenceMelbourne, 22 nd August 2008

and what you can do to avoid them)



Demographics & Data Collection

Pareto of Common Failure Modes

Detail on the Top Eight Failure

Modes

What Did Not Make the List

Question and Answer

Reasons for Six Sigma Success / ailure

ession Overview



Project never finished.

Project finished but improvement/saving

was insignificant.

Project finished but solution not

implemented.

No long term implementation of solution.

Reasons for Six Sigma Success / ailure

What do we mean by “failure”?



Data Demographics

N=180



Top Reasons for Project Failure

12

3 45 6 7 8



#8: Training was Poor

Only Blackbelts are trained - (small company)• Management doesn’t have the knowledge to

support projects • Process owners don’t feel confident of the

outcome • Project leaders feel overwhelmed

No Project

• “Only 40% of our students complete a project in the 1 st year.” • “We tell our clients to bring a project, they

never do.” • “They never get to practice what they

learned.” No coaching or mentoring from MBBs or trainers

Used Minitab for all illustrations but never taughtthe software




What to do about it

Planning your deployment•

Detail request for proposal from consultants• Specify quantity, quality and depth

Training revision by Minitab• Public, onsite and online

Built in guidance in software such as QualityCompanion

• Not a substitute, but a good memory jogger




What to do about it – built in guidance inQuality Companion



# 7: The Successful Failure

Defect Slayers Story Board

Financial Results:

$30,156 in 2007!



# 7: Poor Use of Resources forDMAIC Rigor

Improvement realized through the rigor of Six Sigma methodologies

must be unquestionably significant, must make the process look

different, and generate enough savings to be shared with the team

members and still increase the corporate bottom line

Praveen Gupta, Quality Digest commentary, 2007

Take Home Message : It takes about the same effort to complete a

$300,000 project as a $30,000 project, maybe less.



# 6: Project Forced intoDMAIC format

While only 32% of respondents in organizations

with new (< 1 year ) Six Sigma programs

frequently or always use a formal prioritization

process, 63% of those in organizations with 5 – 10 years experience with Six Sigma do. Jonathan

Atwood, iSixSigma Research – Project Selection,

2005

Take Home Message : Selecting the right Six

Sigma projects is key to their success. Utilize a

formal project selection process from the

beginning of your Six Sigma implementation.



# 6: Project Forced intoDMAIC format

Inappropriate Projects for DMAIC Methodology

Select a vendor for our Statistical Process Controlsoftware

Reduce auto part failures one year into life of thecar

Install a new finishing line for our desktop product(perhaps DFSS)

Having BBs and GBs pick their own projects is not a good strategy in our experience, Snee & Hoerl , Six

Sigma Beyond the Factory Floor, 2005



# 5: Project scope too large

Improve the profitability of theSouth American Division.

Fix the supply chain.

Increase customer satisfaction.



# 5: Project Scope too Large

How do you know you’ve got itright? – SMART 1

S pecific – usually onegeographical location

Measurable

Achievable – one product / defect

Relevant – SIPOC

Time bound

Brook, Q., Six Sigma and Minitab , 2006, p17.



# 5: Project Scope too Large

Critical-to-Quality Tree – Minitab Quality Companion 2

How to solve it



# 5 – 7: Project Selection

Solutions – Formal Project Risk Assessment

Project Risk Assessment Tool – Minitab Quality Companion 2



#5-7: Project Selection

Solutions – Formal Project Prioritization matrix



# 5 - 7: Project Selection

Solutions – Formal Project Prioritization matrix



# 4: No Data - Bad Data

No Data• Service Quality projects can be difficult • Limited access to operations data -

confidentiality & privacy issues

Bad Data• Do the Gage R&R first – 156% of Tolerance! • Attribute data has a tremendous potential for

variation




What to do about it

Check first – investigate fully the quality andquantity of data you will be able to collect

Data collection modes

Bar code scanners – high capital invest

Employees self recording – can be unreliableor biased

Trained observers - expensive

Process participation by “secret shoppers” –

must be well managed



#3: Solution not Implemented

Process Owner not Involved inthe Project

• Only the Six Sigma Department was

interested.• Process owner was never on board

in the project.• Project hand-off

“This is not what we expected?”




How do you know if your projectis going down this path?

•

Minimal input from process owner

• Active resistance by process owner

• No sign off by process owner




What to do about it



2 Project is not Linked toinances

Question: At the end of the project, who’s budgetwill be cut and by how much?

Example Project Goal: Reduce the number pressshutdowns caused by mold equipment from 37 to= 14 per month.

Solution:

preventative planning meetings - $

mold designer checks prescription - $

thicker chrome plating - $

reduce press speed - $

+ lots of work by the 6S team

Is this solution worth implementing?



#2 Project is not Linked toFinances

Failure Rate

Linked: 26 / 106 = 25%

Not Linked: 41 / 76 = 54%

Data: A major manufacturer of buildingmaterials monitored projectcharacteristics and project success.




Tying the project to real savings – before you do the project.

The Money Belt – identify and verify financial benefits

Increase volumeIncrease price customer is willing to pay

Minimize fixed and / or variable cost

Increase yield




What to do about it.



# 1: Management Support

After our CEO left the company, our Six Sigma program just faded away. - small servicequality company employee

You shouldn’t ask your employees to do something you’re not willing to do yourself. …The engagement of senior management is critical to any significant organizational change.- Alan Kent, CEO of Meadows RegionalMedical Center.




Project Scope Changes Only When Necessary

Knowlegable Project Leader

Management Understands Six Sigma

Enough Time to Complete the Project

Appropriate Project Resourses Available

Committed Management Support

300250200150100500Rating

50

61

64

72

74

277

Good Management S upport - Total = 5 9 8




Measuring Leadership Commitment




Good chance of success




Poor chance of success



Project was too complex to solve

No Rewards / Recognition program

We didn’t understand the statistics behindSix Sigma

Politics

What causes for failure did not showp on the list?



Top down managementsupport essential.

Project selection crucial.

Having selected the rightproject don’t cut corners onexecution.

Conclusion



The Top ReasonsSix Sigma Projects Fail

Thank you for your time andparticipation.

Questions?

and what you can do to avoid them)

Top Reasons SS Project Fail

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