CSF THAT EFFECTIVELY ENHANCE SIX SIGMA IMPLEMENTATION

Critical Success Factors (CSF) that Effectively Enhance Six Sigma Implementation

Executive Summary

Many organizations face serious challenges, including the determination of how to reduce costs while maintaining quality and profitability (Mathews, 2006). Here we analyze a company (Company A) that has used Six Sigma for over 6 years to complete a pioneering modification project that transformed a Boeing 747 passenger plane into a large freight aircraft (Harbison, 2006). Since 1999, Company A has worked with General Electric (GE) to implement the Six Sigma methodology and has decreased the B747-400 engine overhaul turn around time (TAT) from 92 days to 45 days. We identify the key success factors that enabled it to complete their initial projects and obtain certification.

Using a successful Six Sigma program in a Network Technology company, the purpose of this research was to develop an implementation model which consists of six steps. The first step is to perform a strategic analysis which is customer/market driven. The second step is to establish a high-level, cross-functional team to drive the improvement initiative. The third step is to identify the overall improvement tools. The fourth step is to perform high-level process mapping and to prioritize improvement opportunities. These four steps are considered strategic decisions implying a top down approach where management was primarily involved in decision making. The fifth and sixth steps are to develop a detailed plan and form low-level improvement teams and to implement, document, and revise as needed. The last two steps are considered tactical decisions, implying a bottom up approach where engineers or technicians were primarily involved in decision making. In addition, important for both practitioners and academicians, several areas of future research are also discussed regarding the implementation model.

Table of Content

EXECUTIVE SUMMARY2

TABLE OF CONTENT3

LIST OF TABLES4

CHAPTER 1 INTRODUCTION5

CHAPTER 2 LITERATURE REVIEW8

Implementation model10

Six Sigma role structure13

Six Sigma structured improvement procedure14

Six Sigma focus on metrics14

Managerial implications20

Six Sigma personnel and organizational structure24

Six Sigma success factors26

CHAPTER 3 METHODOLOGY30

Data collection32

Data analysis33

Limitation of case study approach34

CHAPTER 4 DISCUSSION43

Description of implementation experience43

Form cross-functional improvement team44

Choose improvement tools46

Execute high-level process mapping and prioritize improvement47

Develop detailed implementation plan48

Implement, document, and revise50

Implications of Six Sigma implementation52

CHAPTER 5 CONCLUSION & RECOMENDATION60

REFERENCES65

APPENDIX A: SIX SIGMA TRAINING72

APPENDIX B. TRAINING PROGRAM ENHANCEMENTS76

APPENDIX C. IMPLEMENTATION OF A SIX SIGMA PROJECT77

List of Tables

Table 1: The various roles in the Six Sigma system25

Table 2: Six Sigma key success factors29

Table 3: Rotated component matrix30

Table 4: Questionnaire35

Table 5: Question factor analysis results40

Table 6: Discriminate analysis classification results42

Table 7: Comparison of the key success factors for Six Sigma projects and Green Belt projects63

Chapter 1 Introduction

Many organizations face serious challenges, including the determination of how to reduce costs while maintaining quality and profitability (Mathews, 2006). Here we analyze a company (Company A) that has used Six Sigma for over 6 years to complete a pioneering modification project that transformed a Boeing 747 passenger plane into a large freight aircraft (Harbison, 2006). Since 1999, Company A has worked with General Electric (GE) to implement the Six Sigma methodology and has decreased the B747-400 engine overhaul ...