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1 6 Sigma-based Process Innovation Methodology - Integration of Process Innovation and 6 Sigma Mahn Chey Abstract In this day and age, innovation is one of the hottest topics for all types of businesses in the global competitive economy. In an effort to help our clients innovate how they do their business, Samsung SDS has developed the 6 Sigma-based PI Methodology, leading the trend of integrating 6 Sigma with other innovation methodologies and/or tools. This paper provides an overview of 6 Sigma-based PI Methodology that can be applied to innovate business processes and implement information systems. In addition, two major services from Samsung SDS Consulting Division are explained: PI Consulting and PI 6 Sigma Black Belt Training Program based on the methodology. This methodology consists of process backbone and solution module with various process analysis and design tools. The process backbone includes 5 main phases: define-measure-analyze-enable-verify (DMAEV). The solution module is made up of 5 steps: define-architect-build-testlaunch (DABTL). Process analysis and design tools such as BPA (Business Process Assessment), PRCA (Process Root Cause Analysis), process modeling, 5 design parameters, and 15 process design patterns are also provided in the methodology discussion. This methodology is designed to provide effective process innovation and development of innovation experts within the company are expected from adaptation of this methodology. Keywords: Process Innovation(PI), Six Sigma, Process Redesign, PI 6 Sigma Methodology, DMAEV, DABTL 45

2 PI (Process Innovation, ) 6 SDS PI 6 PI PI 6., 6 Cross-functional / PI 6 Operational Excellence. PI. SDS PI, IT 6. PI 6,, Process Backbone 5 Solution Module. PI 6 SDS, Benefit.,,

3 .,,,,,. Product Leadership Zone Geoffrey A. Moore Life Cycle. Life Cycle Product Leadership, Customer Intimacy, Operational Excellence, Category Renewal 4, Operational Excellence Customer Intimacy PI 6. Operational Excellence Customer Intimacy, Operational Excellence,,, Customer Intimacy. Operational Excellence & Customer Intimacy Zone Category Renewal Zone Revenue Growth New product invention, tailoring, and development Disruptive Innovation Application Innovation Product Innovation Process Innovation Marketing Innovation Business Model Innovation End of Life Structural Innovation Technology Adoption Stage Main Street Stage Declining Stage Time Hammer Champy Reengineering the Corporation (Process Innovation),,. 47

4 Davenport Process Innovation,. PI 6 21, (Process),. PI 6,,,, /,,,,,, Enterprise Value Chain End-To-End. PI 6 PI End-To-End,,,., (Fundamental Rethinking),, (Radical Redesign),, (Dramatic Improvement). (Fundamental Rethinking).. (Radical Redesign), (). (Dramatic Improvement). 6 6 Roadmap PI 6 PI 6. 48

5 PI., PI, SCM (Supply Chain Management), ERP (Enterprise Resource Planning), CRM (Customer Relationship Management) 6, PI, SCM. PI,, SCM, ERP, CRM 6 VOC (Voice of Customer), VOB (Voice of Business). SDS / PI IT 6. PI 6 PI, PI BB., PI 6, PI IT /// 6 PI 6. PI 6 6,.,. GE Plastics, GE Medical System, GE Capital e-process Roadmap DuPont Honeywell Lean 6. SDS 6 SDS e-innovator PI/BPR/ISP., 6. PI 6 PI 6 49

6 PI IT. PI/ERP Consulting Methodology PI 6 Sigma D M A E V OGC ITIL AM / SM SDS SCM 6 SDS DFSS/p SAP ASAP Methodology * DMAEV : Define Measure Analyze Enable Verify, PI 6 Supply Chain SCM 6 S PI DFSS/p (Design for Six Sigma/process), 6 PI IT. SCM 6 Supply Chain Council SCOR (Supply-Chain Operations Reference) SCM 5 Design Parameter. PI 6 SCM 6 DMAEV/DABTL Roadmap ERP DABTL(Define- Architect-Build-Test-Launch), CRM, PLM (Product Lifecycle Management), MES (Manufacturing Execution System). S DFSS/p 6 ERP PI. PI 6 2 PI 6 IT. PI 6 /,,,., SCM 6 Define Tool SCOR Model SCM Plan/Source/Make/Deliver/Return 50

7 PI 6 APQC 2 PCF (Process Classification Framework) Model, PMM (Process Maturity Model), SCM,, /,. PI 6 4., PI 6 Roadmap SCM 6 DMAEV Phase., Define., Define. PI /,,, Value Chain., Enable Verify ERP. Engineering ERP Roadmap. Monitoring. PI 6 6 SDS. IT 6 DMAEV - DABTL Framework. PI 6 Component Full-Set., Component 51

8 ,. PI 6 // Process Backbone Solution Module Solution Module. Process Backbone 6 DMAEV(Define-Measure-Analyze-Enable-Verify) 5, /,,. Solution Module Solution 6 DABTL (Define-Architect-Build-Test-Launch) 5 PI 6 Enable Solution Contents Plug-in. / DABTL SCM, ERP, PLM, MES, CRM Solution Module, ERP, CRM, CRM, ERP, ALM(Asset Lifecycle Management), RM(Risk Management) Solution Module. ERP, SCM Solution Module, MES Solution Module. Mega Process Mega Process Mega Process / Plug In Plug In Plug In Contents ALM: Asset Lifecycle Management RM: Risk Management 52

9 PI 6 /// /, Operational Excellence. PI 6., PI 6 Operational Excellence Tool /., PCF Model., ERP Solution Composer Solution Manager SCM SCOR DABTL., DMAIC Tool Roadmap Process Reference Model Contents PI BB., ROI.., To-Be 5 Design Parameters. 5 Design Parameters 5 5 Process, Operation Rule & Policy, Organization/R&R, Performance Measure, System. Improving Main Purpose Method Measures DMAIC Quality Elimination of Root Cause Problems Failure Mode LEAN Speed Balancing Process/ manpower TAKT Time Demand DMADOV Design Developing New Solution Design Required Function DMAEV Process Excellence 5 Design Parameters Business KPI 53

10 PI 6 DMAIC DMADOV 6 Lean 6,, [1]. PI 6 6,, Tool, Enable To-Be Define-Measure-Analyze-Enable-Verify 5 Phase 15 Step. 6 PI 6, Define PCF Reference Model, Process Maturity Model. Measure Value Stream Map Tool, Analyze PRCA (Process Root Cause Analysis), Enable ERP SAP Solution Manager. Verify Deming Cycle 6. Define Measure Analyze Enable Verify 54

11 Define PI 6,,,,. Define 3 Step. STEP 1. CTQ VOB Business CSF VOC (BPA) CTQ CTQ CTQ STEP 2. Risk STEP 3. / [Step 1] CTQ Step Business VOC VOB (BPA, Business Process Assessment) CTQ(Critical to Quality). 5 Forces Model, 3C, Value Chain, 7S, Business System Diamond, Interview, Survey, Focus Group Interview. VOB CSF(Critical Success Factor) SWOT Analysis CSF (CTQ s) (CTQ). [Step 2] Step,,,. SIPOC(Supplier, Input, Process, Output, Customer), In/Out of the Frame, Competence-Person Matrix, Gantt Chart. [Step 3] Step [Step 2].. 55

12 Define VOC/VOB Process.,, 6 VOC/VOB, BPA (Business Process Assessment). 4 Process Reference Model, Process Maturity Model, SAP Solution Composer, Lean Value Stream Map. Measure Define CTQ Y(),. STEP 4. Y s STEP 5. STEP 6. Y s / Y [Step 4] Y s Y() CTQ Y Y. [Step 5] Y. [Step 6]. / Y. Measure Y s KPI Metrics BSC (Balanced Score Card) 56

13 Y PI 6. Analyze Y, Y=f(x) Vital Few X's. STEP 7. STEP 8. STEP 9. Vital Few X s Data Graph ᆞᆞ ᆞ Process Root Cause Analysis Vital Few X s [Step 7] Data Data. [Step 8] Graph, ANOVA,,,,,, PI 6 PRCA (Process Root Cause Analysis) Vital Few X. [Step 9] Vital Few X s Y Vital Few Xs. Analyze 6 Vital Few X PRCA. PRCA BPVA (Business Process Value Analysis) TOC (Theory of Constraints), BPVA / Vital Few X Quality, Time, Cost Process Value 57

14 Process Efficiency Calculation, Lead Time/Inventory Analysis, Time-Phased Value Mapping, Value-Based Assessment, Cost/Cycle Time Analysis. TOC Vital Few X DBR(Drum-Buffer-Rope) Thinking Process CRT(Current Reality Tree). Analyze 6 PI 6 Tool FDP Map(Functional Deployment Process Map), Value Stream Map, Process/ Map, RASCI Chart, Days In the Life Of Planner. RASCI Chart Chart Responsible, Approval, Supporting, Consulted, Informed Tool. Days In the Life Of Planner. Enable Y, (Vital Few X s),. Step 10. Step 11. Step 12. Process Rule & Policy R&R Performance Measure QFD(Quality Function Deployment) 5 DP(Design Parameters) ERP DABTL. 58

15 [Step 10] Y Vital Few X s. [Step 11],. [Step 12]. 5 Design Parameters, Process, Rule & Policy, Role & Responsibility, Performance Measure, System,. PI 6 PI SAP, SAP Best Practice Contents Solution Manager Tool. PI 6 Hammer 15 TOC EC (Evaporating Cloud), FRT (Future Reality Tree). 5 Parameter Design Global Optimum DABTL (Define-Architect-Build-Test-Launch). Enable ERP DABTL, PLM, CRM, ALM ///. Verify Pilot,,. Deming Cycle Pilot ROI,. [Step 13] Pilot Pilot. Pilot, Pilot Pilot. 59

16 [Step 14]. Pilot... [Step 15] PI 6, 3.,.,,. STEP 13. Pilot STEP 14. STEP 15. Pilot Pilot PI 6 Pilot IT. Verify Plan Do Check Action Deming Cycle Pilot ROI PI,. SCM 6 DABTL 60

17 . DABTL SAP ERP SAP Solution Composer & Solution Manager DABTL., DABTL SAP ERP. PI 6 Sigma Define Measure Analyze Enable Verify Define Architect Build Test Launch PI 6 Sigma for System Implementation SDS PI 6 BB. PI 6 / PI. PI 6 SDS PI PI PI., SDS PI 6 MBB Mentoring MBB, BB, GB 6 Belt. SDS. 61

18 . Initiative. 6, MBB BB 6 6 BB Sponsorship PI Ownership PI. PI 6 BB, 6 Cross-functional. 6 PI, Communication, DMAEV. PI 6 6 PI BB PI BB PI BB PI/ 6 PI BB PI, PI 6.. PI 6, PI 6 PI IT. PI BB PI 6 PI BB. PI BB PI 6 Roadmap, PI Tool End-to-End, Cross-functional PI PI 6. 62

19 On-Site Customizing Site. On-Site BB, BB. 21 PI 6. PI 6. PI 6., Communication. PI 6, PI 6 Upgrade. DMAEV-DABTL Framework Contents., TOC, TRIZ, VSM (Value Stream Map) BSC IT PI, Best Practice. SDS PI 6. 63

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untitled Introduction to execution strategy and case study for R&D Process Innovation Woocheol Jeong, Soyoung Moon Abstract The corporate research and development has a primary role of developing new products,