Case Studies

Integrating Values Based Management, Continuous Improvement and EHS to create a world-class management system

Company Background

Alcan is a $25B global leader in aluminum and packaging, including a global leadership position in pharmaceutical packaging. Alcan employs 88,000 people and has operating facilities in 63 countries. Alcan is a truly global company with approximately 66% of revenue outside of the US

Deployment Specifics

Alcan Launched in 2003 – Deployment to include a total of approximately 550 Black Belts and 2000-3000 Green Belts Year 1

  • Designed global deployment in four months
  • Built a true “best practice” continuous improvement model and curriculum, combining the best approaches of 6 Alcan divisions with the best of George Group Lean Six Sigma
  • Translated curriculum into nine languages with three more languages in work
  • Trained over 1,800 business leaders through a two day training workshop that introduced the concepts of Alcan CI in an interactive learning format
  • During Year 1, trained and coached 213 Black Belts and 726 Green Belts in English, Canadian French, European French, German, Italian, Korean, Portuguese, Mandarin, Indonesian, Czech
  • Utilized multiple Kaizen projects to drive rapid results. Created Black Belt and Green Belt capability to facilitate Kaizen events
  • Developed 53 Champions Worldwide to support deployment infrastructure and project selection
  • Facilitated over 40 on-site project identification and prioritization workshops to select and launch the highest EVA project opportunities
  • Integrated best of class CI techniques between Alcan and Pechiney

Results

  • Deployment ahead of plan to date due to organizational “pull” for more Black Belts sooner. Specific results are client confidential at this time
  • Alcan is expecting annualized EVA contribution from CI to be over $500 million between 2003 to 2005
  • Alcan is planning to pay for all deployment costs with results realized inside of the first 12 months.

“The Way We Manage Our Business”

Company Background

Caterpillar is the world’s largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. It sells its equipment globally through a network of over 200 dealers in about 2,700 locations.

Deployment Specifics

Caterpillar launched Six Sigma in Nov 2001
Year 1

  • Delivered 4-week DMAIC training for 275 Black Belts
  • Trained 250 Black Belts in Design for Six Sigma
  • Trained 90 Master Black Belts
  • Trained 375 Black Belts in Lean Enrichment for 6 Sigma
  • Certified 12 Lean Masters
  • Coached several hundred black belts in DMAIC, DFSS and Lean methodologies

Year 2

  • Launched 6 Sigma for their extended enterprise (including Caterpillar’s suppliers and dealers).
  • As part of Caterpillar’s 6 Sigma framework, launched Lean Enrichment, Lean Masters, and DFSS expert paths for their Black Belts.

Results

  • Investment Payback: “Gains from 6 Sigma are more than twice implementation costs in the first year” – Caterpillar 2001 Annual Report
  • Cultural and Organization Development: “The [6 Sigma] methodology has become a driving force in our business, driving us toward our goals – particularly those related to growth, quality and reliability. More than 15,000 employees are involved in various roles, and by year-end [2002] 40 dealers and 100 suppliers had deployed 6 Sigma as well.” – Caterpillar 2002 Annual Report
  • Continued Cost Reduction: “We are relentlessly pursuing our [$1 Billion cost reduction goal]. Our diversification strategy, a tremendous effort from employees and the continued use of 6 Sigma methodology led to [2002’s] solid results, as well as breakthroughs in cost reduction, quality and process improvement – including a significant improvement in machinery and engines net free cash flow of $645 million.” – Caterpillar 2002 Annual Report.
  • More than 2,300 employees are now working full time as Black Belts, leading 6 Sigma projects throughout the company around the world – and more than 25,000 employees, 240 suppliers and 95 dealers are engaged in projects in one way or another. And the impact goes far beyond what we can measure in numbers… 6 Sigma has been good for people – and what’s good for people is good for this business. – Caterpillar 2003 Annual Report

“Creating Value”

Company Background

ITT is a global $5.6 billion company headquartered in White Plains, New York with 39,000 employees at 100 locations in 20 countries. 25% of its revenues are for Defense related work (satellites, communications, night vision, technical services, electronic countermeasures, radar systems)

Deployment Specifics

ITT launched Value Based Six Sigma in 2000
Year 1

  • Trained top 1000 business leaders through a two day training workshop that introduced the concepts of Value Based Six Sigma in an interactive format
  • Architected global roll-out for 30 diverse value centers in 16 different countries and 8 languages Coordinated and managed the translation of Black Belt curriculum into 7 languages
  • Assisted with the design and roll-out of ITT’s Best Practice Symposium annual event
  • Training for 60 Deployment Champions to lead cultural Lean Six Sigma change at the value center level
  • Provided 6 weeks of hands-on coaching for each Champion to build value based project identification and prioritization capability (Champions are now capable of leading operational due diligence to support acquisitions)
  • Trained 150 Black Belts in 6 week curriculum including Team Accelerator and Lean Production best practices in English, German, French, Italian, Spanish, and Mandarin.
  • Coached more than 200 Lean Six Sigma Black Belt projects in the first 12 months

Years 2-4

  • Provided Team Accelerator leadership and cultural transformation training to over 500 key managers (rolled out beyond Black Belts to improve team effectiveness in all areas of the company)
  • Trained an additional 225 Black Belts
  • Trained 25 Master Black Belts
  • Trained 250 Executives in Lean Fundamentals
  • Trained 125 Lean Masters in deeper lean process tool and kaizen event facilitation in 2002

Results

  • ITT is exceeding plan to date for realized financial results: $400M+ cumulative operating profit improvement through 2003
  • ITT publicly announced that Value Based Six Sigma paid for itself during 2000 and contributed $135M Operating Profit during 2001

Stretching for Fastest Return on Program Investment

Company Background

Berkshire Hathaway portfolio company with 10,000 employees Produces fiberglass products for insulation, roofing and engineered products

Deployment Specifics

Accomplished rapid kickoff and ramp-up

  • Kickoff within 1 week of decision
  • Optimal organization design
  • First wave of Champions, Black Belts, projects and infrastructure in place within 6 months

Trained

  • 67 DMAIC Black Belts across US, Germany, Slovakia and Sweden
  • 6 DMAIC Master Black Belts
  • 20 Design for Lean Six Sigma Black Belts
  • Exec Team/Upper Management in Team Leadership

Conducted Lean Overview Training and Kaizen Events at Plant Level

“Return to Greatness”

Company Background

Xerox is a $15 billion document technologies, products, and services company with approximately 61,000 employees worldwide

Deployment Specifics

Xerox launched Lean Six Sigma in Nov 2002
Year 1

  • Engaged with top 1500 executives and managers in the company with 3 day workshops to create active leadership involvement Global deployment design and infrastructure completed
  • Customized our existing Lean Six Sigma for Services curriculum
  • Trained 30 Deployment Champions in our Value Based Project identification, prioritization and selection approach and helped select initial 250 Lean Six Sigma projects
  • Led training/coaching for 290 Black Belts. 75% of all 2003 Black Belt training was completed between Feb-Aug 2003. Trained 300 Green Belts and 150 Yellow Belts.

Year 2

  • Conducting executive Team Accelerator sessions with key leaders within the company
  • Conducting Executive Green Belt (Sigma Leader) sessions for top 300 leaders
  • Will train and develop 20 Xerox Master Black Belts in 2004
  • Assisting Xerox MBB candidates in the training and coaching of additional 250 Black Belts
  • Training 1000+ Green Belts in 2004, to be led by a combination of George Group MBBs and Xerox MBB candidates
  • Training 50-100 Black Belts in Design for Lean Six Sigma (DfLSS) methodology

Results

  • Xerox recouped its initial deployment investment in first nine months, with realized results.
  • Specific financial results are client confidential but may be obtained through direct reference interview (Xerox has forecasted hundreds of millions of dollars in economic profit impact in 2004 and beyond)
  • Xerox will be self-sustaining in Year 2.

Understanding the Power of the “Recipe” Through a Pilot

Company Background

Medical products company with leading positions in Bioscience, Medication Delivery, and Renal Products. 54,000 employees with operations in 27 countries

Deployment Specifics

Initial small pilot wave generated mixed results based on existence of key management support factors Right People (Dedicated Black Belt) Right Project (Linked to Strategy) Organizational Sponsorship Follow-on waves of Lean Six Sigma DMAIC (process improvement) and Lean Six Sigma DMEDI (process design) deployed with excellent results Mixture of manufacturing and business process projects

Results

Average project values for the 1st full Black Belt group deployed with the “recipe” of management support: $300-500K per project