Final Report of Operation Management 6 Sigma Project in Z Airline Presented by Chu-Yen Lin, Yi-Shien Wang, and You-Liang Wang January 2, 2006

Outline Concept of 6 Sigma Idea of the Program in Z Airline 6 Sigma Project in Z Airline Result & Discussion

Concept of 6 Sigma Idea of the Program in Z Airline 6 Sigma Project in Z Airline Result & Discussion Concept of 6 Sigma It’s about applying statistical tools to raw data to provide information that leads to process improvements that impact the bottom line. Linkage between 6 Sigma and business priorities The way to incorporate 6 Sigma into the firm: Communication Training Corporation cross divisions Promise and commitment to performance

Concept of 6 Sigma Idea of the Program in Z Airline 6 Sigma Project in Z Airline Result & Discussion Concept of 6 Sigma Statistically a process that produces only 3.4 defects per million opportunities (DPMO). Can be a vision, goal, strategy, philosophy, value, tool set, etc. When implemented across a business Customer loyalty, productivity, employee’s capacity, teamwork, business result. Makes you “better” and “faster” Thoughts: measurable, everything you do is a process, scientific method.

Concept of 6 Sigma Factors which impact the implementation of 6 Sigma Idea of the Program in Z Airline 6 Sigma Project in Z Airline Result & Discussion Concept of 6 Sigma Factors which impact the implementation of 6 Sigma Linkage of Policy Support by Top Management Reward & Certification Professional Team Work Build 6 Sigma Culture

Concept of 6 Sigma Six Sigma Roles Responsibilities Leader Idea of the Program in Z Airline 6 Sigma Project in Z Airline Result & Discussion Concept of 6 Sigma Six Sigma Roles Responsibilities Leader 對Six Sigma做出承諾，並在整個組織內倡導Six Sigma。 Champion 為黑帶的作為而戰，提供所有必要的支援協助移除推行障礙。 Master Black Belt 由有經驗的資深黑帶來出任，統整管理數個Six Sigma專案，並肩負起黑帶的訓練者、導師與指引者的角色。 Black Belt 接受數週的統計及團隊技巧訓練，全職投入於執行專案。 Green Belt 兼職協助黑帶收集資料及整理資訊。 Team Member 對特別的專案有合適經驗的專業人才，負責協助專案的推行。 Process Owner Six Sigma專案改善目標流程的實際負責人。

Concept of 6 Sigma Idea of the Program in Z Airline 6 Sigma Project in Z Airline Result & Discussion Concept of 6 Sigma Based on Scientific Method: A disciplined five-step process - DMAIC Define what’s critical to customer? Measure look into current process Analyze find out the relationship between Y & X Improve the way to fix critical defects Control sustain the improvements Define the “Y” Measure the “Y” Find & Measure the “Xs” Improve “Xs” Control the “Xs”, no variation in the “Y”

Concept of 6 Sigma Idea of the Program in Z Airline 6 Sigma Project in Z Airline Result & Discussion Concept of 6 Sigma Based on Scientific Method: A disciplined five-step process - DMAIC Define what’s critical to customer? Measure look into current process Analyze find out the relationship between Y & X Improve the way to fix critical defects Control sustain the improvements 1. Define CTQ 2. Program Charter 3. Process Map 1. Select Data 2. Data Reliability 3. Performance Capability 4. Set Target 1. Difference 2. Relation Improve “Xs” Control the “Xs”, no variation in the “Y”

Ideas of the Programs Who are HR’s customers? Concept of 6 Sigma Idea of the Program in Z Airline 6 Sigma Project in Z Airline Result & Discussion Ideas of the Programs Who are HR’s customers? The voice of the Customers The practice about “Process” Compile & Evaluate Data for existing customers Estimation of cost saving Reduce re-work cost which is resulted from the pilot who fails to report. Increase the productivity which was generated by the pilot reporting on time. Process Mapping

6 Sigma Project in Z Airlines Concept of 6 Sigma Idea of the Program in Z Airline 6 Sigma Project in Z Airline Result & Discussion 6 Sigma Project in Z Airlines 4 blockers Intensify the Recruiting Process for Expatriate Pilots Define: current process Measure: data collection Analysis: problem analysis Improve: reengineering the process Control: ensure the improved process

Results & Discussion Estimate the saving correctly Concept of 6 Sigma Idea of the Program in Z Airline 6 Sigma Project in Z Airline Result & Discussion Results & Discussion Estimate the saving correctly Communicate and Coordinate cross function Compile & evaluate DATA for existing customers Commitment of members and top managements IMPROVE THE PROCESS WHETHER 6 SIGMA OR NOT

THANK YOU Q&A

Concept of 6 Sigma Six Sigma中HR扮演的角色 Idea of the Program in Z Airline 6 Sigma Project in Z Airline Result & Discussion Concept of 6 Sigma Six Sigma中HR扮演的角色 在組織推行的方案中，都需要許多要素的貢獻才能成功，HR必須負起下列範圍的成敗責任： 黑帶的選拔及維持 在推行Six Sigma過程中，選拔正確的人來擔任黑帶是關鍵成功因素，對黑帶的訓練投資也很重要，再者黑帶是Six Sigma看得見的門面，他們協助塑造組織的Six Sigma形象，並且必須非常樂於擁護整個推行過程，因此您必須非常小心地來選拔人才。(也有些公司僅僅只是從那些早已被認定為有潛力的員工中，挑選出來當黑帶) HR專職人員可以協助Six Sigma高階領導者找出黑帶的合適人選，並確保經過2年的黑帶專職工作輪調之後，原本職位仍被保留著。在這一部分HR潛在的貢獻有： 建立職能模式，協助定義合適人選必須具備的技術能力、團隊溝通能力、領導技能。 建立職務說明書，協助候選人在接受聘任前，事先了解工作內容及要求。 發展留才策略，協助黑帶完成整個專案及輪調過程，確保組織在訓練及發展的投資可以獲得回報。

Concept of 6 Sigma Idea of the Program in Z Airline 6 Sigma Project in Z Airline Result & Discussion Concept of 6 Sigma 報酬及認證 黑帶及Six Sigma推行團隊的報酬及認證事宜，遠比看得見的部分複雜的多，黑帶從不同單位不同部門轉任過來，原本的薪資及職等都不相同，如何核定轉任黑帶之後的薪酬事宜，這是非常詭譎及重要的關鍵。 在專案團隊的階段，報酬也是同樣的錯綜複雜，由黑帶領導的Six Sigma專案為組織節省了巨額的費用，要決定如何獎勵專案成員以及節省的金額如何認證都不是件容易的事，然而如果對此議題忽視不理，勢必將引起Six Sigma專案成員的抱怨與憤慨，甚至造成推行工作的全盤失敗。 HR專職人員可以協助Six Sigma高階領導者積極面對這項挑戰，訂出正確的薪酬結構。在這一部分HR潛在的貢獻有： 分析現有的薪資狀況，來重新定義參與Six Sigma推行專案成員的薪資範圍。 設計策略性的薪酬計劃來支援Six Sigma活動。 為Six Sigma團隊設計非金錢性的獎勵。

Process Map- Part I (Flight Operation Div.) Time 10 day 3 day 1 day 7 day 14 day 2 day 14 day 7 day 20 day 10 day Build Applicant Review Form Exp. Office Receive Resume Key in Resume Initial Check Arrange Interview Slot Notice Arrange Interview Schedule in Details Conduct Interview Event (paper test, simulator check, interview, medical check) Build Candidates Document Appraise Document : Sign by OT OP & Approve OZ Paper Screening Fleet Office Flight Training Dept. HR:2 CAA- Medical Center Medical Check Issues Check Availability Provide Certificates Candidates

Council of Labor Affairs Process Map- Part II (Human Resource Mgmt. Div.) Time 3 day 7 day 3 day 14 day 5 day 1 day 8-60 day TOTAL: 128-180 days Approve and Issue Work Permit Council of Labor Affairs Send Prehire Notice and Ask for valid certificate Receive Approved Document Finalize & Send Document to CLA Receive Work Permit & Send to relevant Dept. HR Expatriate Office Send Invitation Letter Arrange Report Affairs Flight Training Dept Schedule Tentative Class Date Confirm Class Date Issues Sign back and Turn in Certificates Confirm Report Date Report Candidates