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Fraternal Twins:
Six Sigma & Activity Based Management


Two principles, two days, two experts with one result…
maximize improvements in
your organization!

Workshop Objective?

Cost and quality have typically been viewed as separate corporate initiatives using completely different teams, techniques, targets, terminology and tools. This workshop will show you "how to" accomplish both objectives simultaneously! Thousands of business people have heard about or experienced the benefits of Six Sigma and Activity Based Management (ABM). Six Sigma is a process of eliminating errors from everyday business activities. ABM is a process of eliminating non-value added costs from those very same business activities. Six Sigma and ABM are fraternal twins... they don't look alike but they come from the same family of continuous improvement. Six Sigma and ABM share much in common:

  • Both focus on activities
  • Both focus on business processes
  • Both focus on activity output
  • Both focus on non-value added waste
  • Both use the same five step problem solving process
  • And much more!

Combining Six Sigma and ABM in any organization maximizes cost reduction and quality improvement. This workshop provides participants with hands-on understanding of how Six Sigma and ABM will work together in their manufacturing, service or governmental organization to produce significant process improvements. This first of its kind workshop makes Six Sigma and ABM understandable for every manager in an organization.

What is the Agenda?

  1. MODULE ONE: Determine if your organization needs Six Sigma & Activity Based Management (ABM)?
    • Take a self-assessment test to determine your organization's business needs.
    • Learn the basic principles, uses and benefits of Six Sigma and Activity Based Management.
    • Match your organization's needs to the benefits of Six Sigma and ABM. Determine if they match your needs.
    • Find out why Six Sigma & ABM are called fraternal twins?

    1. Similarities
    2. Differences
    3. Benefits of combining … cost, time and quality

    • Estimate your organization's quality Sigma and its Non-Value added cost improvement potential.

  2. MODULE TWO: How to prepare your organization for a successful implementation of Six Sigma and Activity Based Management

    a. The three pillars that support the Six Sigma/ABM foundation:

    1. A goal
    2. A leader
    3. An agreement.

    b. Define senior management's role and responsibility … The Law of the Lid
    c. Create a passion, purpose and direction for your Six Sigma/ABM project

    1. Educate employees to gain agreement … who, what, when, why and how
    2. Assess Needs using a Cost of Poor Quality (COPQ) report
    3. Develop an improvement strategy with clear, positive objectives

    d. Assembling your Six Sigma/ABM Implementation Team … define the skills, experience and personalities that work best

    1. Pick a Champion … create a multiple attribute decision-matrix
    2. Pick a Team Leader … developing your first Master Black Belt
    3. Pick a Team … a multi-functional implementation team
    4. Pick Subject Matter Experts (SME) … ABM and Six Sigma
    5. Pick a Coach … finding someone to call for encouragement or eliminate project bottlenecks

    e. How to prepare your Six Sigma/ABM Team for success

    1. Six Sigma training agenda
    2. ABM training agenda
    3. Teamwork training agenda
    4. Manager education agenda
    5. General employee awareness and training agenda

    f. Six Characteristics of a meaningful Six Sigma/ABM Project

    1. Direction, not dictatorship
    2. Purpose, not just a project
    3. Meaningful, not busy work
    4. Process, as well as the product
    5. Real, not an experiment
    6. Solve a problem, not treating a symptom

  1. MODULE THREE: Performing the Five Step Six Sigma/ABM Improvement Process … for all your improvement projects

    STEP ONE … Define the process to improve using Activity Based Management

    a. How to do activity analysis
    b. How to do activity accounting
    c. How to define business processes

    i. Start
    ii. End
    iii. Intermediate Steps
    iv. Boundaries

    d. How to define the quality data … data collection methods
    e. Define a Six Sigma/ABM improvement project
    f. Group exercise

    STEP TWO … Measure the process

    a. Analyze an activity accounting report
    b. Measure throughput, defects and root causes
    c. Select a benchmark
    d. Define Sigma levels
    e. Group exercise

    STEP THREE … Analyze the process

    a. Calculate process quality and cost improvement potential
    b. Fundamentals of Root Cause Analysis
    c. How to define process improvement ideas
    d. Idea generators … brainstorming, 5 Why's
    e. Group exercise

    STEP FOUR … Improve the process

    a. How to implement a Six Sigma improvement
    b. How to restructure the cost resources using ABM
    c. Redeploy or eliminate the waste
    d. Implementation techniques
    e. Group exercise

    STEP FIVE … Control the process

    a. How to lock in your quality improvement
    b. How to lock in your cost improvement
    c. How to create Quality and Cost statistical process control (SPC) charts
    d. Link the improvements to Activity Based Budgets (ABB)
    e. Group exercise

  2. MODULE FOUR: Review and discuss actual Six Sigma/ABM case studies

    a. Review a Six Sigma case study
    b. Review an ABM case study
    c. Review a combined Six Sigma/ABM case study
    d. Compare and contrast
    e. Group exercise

  3. MODULE FIVE: Perform an actual Six Sigma/ABM Experiment

    a. Group Exercise
    b. Perform Steps 1-5 learned in MODULE THREE
    c. Present your project to the class

  4. MODULE SIX: Develop your own Six Sigma Implementation Plan

    a. Review a proposed implementation roadmap … customize to your needs
    b. Determine if you will need software or other resources … advantages and disadvantages of already having ABC software
    c. Designing your first Six Sigma/ABM improvement experiments
    d. Create consequences and compensation for your implementation team
    e. Discuss recommended resources
    f. Define your next steps

Who are the Trainers?

Jointly taught by a Six Sigma Black Belt and a 15-year ABM veteran, workshop participants will learn how to implement and use these two powerful tools to improve cost, cycle time and quality of processes. Using a Tell-Show-Do format, participants will leave this workshop with an action plan to quickly demonstrate the principles and benefits of Six Sigma and ABM in their own organizations.

What is the Workshop Fee?

To receive a quoted fee and more information regarding the workshop, call Christine Nola at 817-475-2945 or e-mail us at tompryor@icms.net.

 

 

ICMS, Inc.
PO Box 13206 ~ Arlington, Texas  76094
Phone: 817-475-2945  Fax: 817-483-7097