Green & Black Belt Financial Impact Analysis
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1 Green & Black Belt Financial Impact Analysis By: Dr. Alberto A. Yáñez Moreno (TMAC) March 27, 2014 San Antonio, Texas 1
2 Agenda TMAC Background Certification Requirements Financial Impact Aggregate Financial Impact by Industry & Type of project Comparisons Between GB & BB projects GB & BB Financial Impact by Industry & Type of project Keys to Project Completion Q & A Session 2
3 TMAC Background TMAC is hosted at the University of Texas in Arlington Started delivering Lean Six Sigma training in 2003 Yellow, Green, Black & Master Black Belt training Training takes place in the form of open enrollment or as a dedicated class Classes typically vary from 8 to 24 students Sponsor & Champion workshop Coaching to belts and management Our Engineers can lead & facilitate Kaizen events 3
4 Certification Requirements Green Belts Attend 2 weeks course and pass final exam (80% passing grade) Submit a full DMAIC project or 2 Kaizen events Black Belts Attend 4 weeks course and pass final exam (80% passing grade) Submit two full DMAIC projects or 1 full DMAIC project and 2 Kaizen events 4
5 Certification Requirements Cont. GB & BB have 1 year to submit a completed project after training is completed Completed projects are submitted, via a Power-Point file, to our MBB s for review We also ask for a letter of support from the project Sponsor 5
6 Financial Impact There is no minimum financial impact toward certification TMAC does NOT have the capability to audit the financial impact submitted for each project A few companies require the financial manager to review the project s financial impact For most projects, the financial impact is calculated by the belts The financial impact is a combination of Soft & Hard Savings Submitted projects encompass years 2009 to
7 Company Segments Company Segments Aerospace Continuous/Batch Discrete Process Food & Beverage Healthcare IT Logistics Oil Industry Service Examples Machining, Structures, Seats, etc. Chemical Process, Paper Mill, Plywood, Dry-Wall, Paint Booth, Reactors, etc. Clothing, Assembly, Manufacturing, Machining, etc. Soda Drinks, Sausage, etc. Hospitals, Labs, Equipment Fabrication, Blood Center, etc. Transportation Assembly, Machining, Chemical Process, Drill Bits, etc. Insurance, Banking, Electric Utilities, Cities, etc. 7
8 Aggregate (GB & BB) Financial Impact Aggregate (GB & BB) Financial Impact Anderson-Darling Normality Test A-Squared P-Value < Mean StDev Variance E+12 Skewness Kurtosis N 219 $ 0 $ 1,500,000 $ 3,000,000 $ 4,500,000 $ 6,000,000 Minimum 0 1st Quartile Median rd Quartile Maximum % Confidence Interval for Mean % Confidence Interval for Median % Confidence Intervals 95% Confidence Interval for StDev Mean Median $ 100,000 $ 200,000 $ 300,000 $ 400,000 $ 500,000 $ 600,000 $ 700,000 Distribution not Normal. Median $150,000 & Mean $591,170 8
9 Aggregate Box-Plot Financial Impact By Industry Type 9
10 Aggregate Pareto Chart By Industry Type Financial Impact Thousand of Dollars 10
11 Aggregate Box-Plot Financial Impact By Project Type 11
12 Aggregate Box-Plot Financial Impact By Project Type 12
13 Box-Plot Financial Impact Between GB & BB Last 13
14 GB Financial Impact Distribution not Normal. Median $100,000 & Mean $511,282 14
15 GB Box-Plot Financial Impact By Industry Type 15
16 GB Pareto Chart By Industry Type Financial Impact In Dollars 16
17 GB Box-Plot Financial Impact By Project Type 17
18 GB Box-Plot Financial Impact By Project Type 18
19 BB Financial Impact Distribution not Normal. Median $160,000 & Mean $659,548 19
20 BB Box-Plot Financial Impact By Industry Type 20
21 BB Pareto Chart By Industry Type Financial Impact In Thousand of Dollars 21
22 BB Box-Plot Financial Impact By Project Type 22
23 BB Box-Plot Financial Impact By Project Type 23
24 Keys to Project Completion Sponsor & Champion Training Right SCOPE Projects prioritization & create a backlog of projects Coaching to GB, BB & Managers Establish a formal GB/BB selection process & determine percentage of time to LSS Projects linked to corporate goal/dashboard metrics Include finance personnel to estimate project financial impact Preferred sequence: Kaizen, Lean, Six-Sigma & DFLSS Project mix: Lean (55%), Six-Sigma (35%) & DFLSS (10%) 24
25 Questions & Answers Session Thank You TMAC Dr. Alberto Yáñez-Moreno Phone:
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