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Searching... | 30000010049768 | HF5415.5 N37 2001 | Open Access Book | Advance Management | Searching... |
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Summary
Summary
Businesses are continuously forced to innovate due to influential factors such as increased customer expectation, technological change, and global competition. Due to continuous innovation, customers are constantly expecting more, and maintaining a higher level of customer satisfaction becomes more and more difficult. Many companies around the world are staying on-top of these changes with the Six Sigma initiative, which stresses continual innovation and process improvement. Customer Centered Six Sigma provides readers with a fundamental, yet comprehensive, approach to thoroughly involving customer requirements into all aspects of your organization's business. This book offers a basic understanding of the Six Sigma initiative, placing emphasis on the consideration and implementation of customer input throughout the process. the authors present a high-level review of basic Six Sigma tools for gathering customer requirements, conducting customer satisfaction surveys, and managing organizational processes and problems. the entire book discusses the involvement and alignment of the customer with the organization's processes and culture. Each chapter's points are reinforced with case-studies which emphasize key lessons learned. Steven and Earl have done an excellent job in presenting complex concepts in simple terms, and reinforcing these through the use of case studies and examples. This is a very practical, readable, and useful book. - James H. Keyes Chairman and CEO Johnson Controls, Inc.
Table of Contents
List of Illustrations | p. xiii |
Acknowledgments | p. xvii |
Preface | p. xix |
Part I Why Six Sigma? | |
Chapter 1 Becoming Customer Centered Is Not a Choice | p. 3 |
Why Six Sigma? | p. 3 |
Customer Expectations | p. 4 |
Technological Change | p. 4 |
Global Competition | p. 4 |
Market Fragmentation | p. 5 |
Workforce Changes | p. 5 |
Organizational Change | p. 5 |
Responses by World-Class Companies | p. 6 |
Customer-Driven Continuous Improvement | p. 6 |
Closer Relationships with Customers and Suppliers | p. 7 |
Innovation and Creativity | p. 7 |
Global, External Orientation | p. 8 |
Core Competencies | p. 8 |
Human Intellect | p. 8 |
The Concept of Six Sigma | p. 9 |
Normal Variation | p. 10 |
Basic Statistics | p. 10 |
Process Variation | p. 11 |
Six Sigma Goals | p. 12 |
Summary | p. 14 |
Case Study: Becoming Customer Focused | p. 15 |
Chapter 2 Linking the Customer, Customer Satisfaction, and Six Sigma Results to Financial Performance | p. 17 |
Market Share | p. 18 |
Loyalty | p. 19 |
Share of Spend | p. 23 |
Process Improvement | p. 25 |
Stock Price | p. 27 |
VA[superscript 3] | p. 32 |
Customer Value Added | p. 32 |
People Value Added | p. 33 |
Economic Value Added | p. 34 |
Summary | p. 35 |
Case Study: Linking Customer Satisfaction Results to Financial Performance | p. 35 |
Part II Capturing the Voice of the Customer | |
Chapter 3 Global Customer Satisfaction Surveys | p. 41 |
The Customer Satisfaction Measurement Process | p. 42 |
Step 1 Define the Objectives | p. 42 |
Step 2 Develop the Research Design | p. 44 |
Step 3 Identify the Attributes | p. 45 |
Secondary Sources | p. 46 |
Internal Sources | p. 47 |
Customer Sources | p. 47 |
Step 4 Design the Questionnaire | p. 48 |
Step 5 Design the Sampling Plan | p. 52 |
Step 6 Pretest the Program | p. 54 |
Step 7 Gather the Data | p. 54 |
Step 8 Analyze the Data | p. 54 |
Step 9 Use the Data | p. 56 |
Step 10 Improve the CSM Program | p. 56 |
Summary | p. 57 |
Case Study: Global Customer Satisfaction Surveys | p. 57 |
Chapter 4 Transaction surveys | p. 59 |
Organizational Commitment | p. 59 |
Continuous Improvement | p. 62 |
Expertise Available | p. 62 |
Defining the Research Objectives | p. 63 |
Size of the Customer Base | p. 63 |
Questionnaire Design | p. 64 |
A Questionnaire Is a Funnel | p. 64 |
Keep It Simple | p. 64 |
Be Specific | p. 65 |
No Opinion/Don't Know | p. 65 |
Introductions | p. 65 |
Directions | p. 66 |
The First Questions | p. 66 |
Expectations Measures | p. 66 |
Performance Ratings | p. 67 |
Open-Ended Questions | p. 68 |
Research Design | p. 68 |
Reliability | p. 68 |
Validity | p. 69 |
Bias | p. 69 |
Research Design Methodologies | p. 69 |
Personal Interviews | p. 69 |
Telephone Interviews | p. 70 |
Mail Surveys | p. 70 |
Electronic Surveys | p. 71 |
Sampling Procedures | p. 71 |
Using a Sample | p. 71 |
Develop a Customer List | p. 72 |
Select the Sample Procedure | p. 72 |
Sequential Samples | p. 72 |
Determine the Desired Sample Size | p. 72 |
Variation in Customer Base | p. 73 |
Precision | p. 73 |
Confidence Level | p. 74 |
Multiple Segments and Measures | p. 74 |
Sample Size Guidelines | p. 75 |
Pretesting | p. 75 |
Data Analysis | p. 76 |
Qualitative Analysis | p. 76 |
Quantitative Analysis | p. 77 |
Tracking Analysis | p. 77 |
Means and Standard Deviations | p. 77 |
Frequency Distribution | p. 78 |
Communicating Your CSM Results | p. 79 |
Critical Processes Ultimately Drive Customer Satisfaction | p. 79 |
Summary | p. 80 |
Case Study: Transaction Surveys | p. 80 |
Chapter 5 Customer Loyalty Analysis | p. 83 |
The Value Payoff Model | p. 83 |
Box 1 Customer Perception | p. 84 |
Box 2 Value | p. 85 |
Box 3 Perceptual Outcomes | p. 85 |
Box 4 Customer Loyalty | p. 86 |
Box 5 Market Share | p. 86 |
Box 6 Reduced Costs | p. 87 |
Box 7 Employee Attitudes | p. 87 |
Box 8 Profit | p. 88 |
Box 9 Shareholder Value | p. 88 |
Box 10 Image | p. 88 |
Box 11 Corporate Communications | p. 89 |
Model Summary | p. 89 |
Two-Factor Model of Customer Satisfaction | p. 89 |
Lost Customer Analysis | p. 93 |
Which Products? | p. 93 |
Which Customers? | p. 93 |
When Does Defection Occur? | p. 94 |
Interview Alternatives | p. 94 |
Personal Interview Agenda | p. 95 |
Telephone Interviews | p. 96 |
Data Analysis | p. 96 |
Summary | p. 96 |
Case Study: Customer Loyalty Analysis | p. 97 |
Chapter 6 Complaint Management Systems | p. 99 |
Encourage Complaints! | p. 100 |
Why Don't People Complain? | p. 104 |
Characteristics of a World-Class Complaint System | p. 106 |
Easy Access: How Customers Want to Complain | p. 106 |
Fast Responses | p. 108 |
No Hassles | p. 109 |
Empowered Employees | p. 110 |
Employee Staffing and Training | p. 110 |
Customer Databases | p. 112 |
Follow-Up | p. 113 |
Organization Commitment | p. 114 |
Summary | p. 114 |
Case Study: Complaint Handling | p. 115 |
Chapter 7 Building Relationships with Key Accounts | p. 117 |
Relationship Builder Process | p. 118 |
Define Objectives | p. 118 |
Objective 1 Create More Personal Contact | p. 118 |
Objective 2 Better Understanding of the Customer | p. 119 |
Objective 3 Identify Future Plans | p. 120 |
Objective 4 Calculate Financial Impact | p. 120 |
Identify Key Accounts | p. 121 |
Identify Team Members | p. 121 |
Develop a List of Key Drivers | p. 122 |
Develop the Interview Instrument | p. 123 |
Train the Team | p. 126 |
Arrange the Interview | p. 127 |
Conduct the Interview | p. 127 |
Analyze Results | p. 128 |
Communicate within the Business | p. 128 |
Make Process and/or Behavioral Changes | p. 129 |
Communicate to Customer and to Business | p. 129 |
Monitor Process/Behavioral Changes | p. 130 |
Measure Customer Perceptions/Behaviors | p. 130 |
Revise as Necessary | p. 130 |
Relationship Builder Summary | p. 131 |
Other Types of Proactive Contact | p. 131 |
Executive Contact | p. 131 |
Customer Visits | p. 131 |
New Product Development Teams | p. 132 |
Beta Sites | p. 132 |
Customer Panels | p. 133 |
Customer Representatives on Internal Teams | p. 133 |
Adopt-a-Customer Programs | p. 133 |
Setting the Agenda | p. 133 |
Summary | p. 134 |
Case Study: Building Relationships with Key Accounts | p. 135 |
Part III Preparing the Organization for Six Sigma | |
Chapter 8 Corporate Strategy/Leadership | p. 139 |
Vision/Mission Statements | p. 139 |
Senior Leadership, Visible Commitment, and Involvement | p. 140 |
Hoshin Planning | p. 141 |
Balanced Scorecard | p. 142 |
Summary | p. 148 |
Case Study: Corporate Strategies | p. 148 |
Chapter 9 Selecting the Right Processes | p. 151 |
Which Processes Not to Select | p. 151 |
No Senior Management Support | p. 152 |
No Support from Process Owners | p. 152 |
Ambiguous Processes | p. 153 |
No Trivial Processes | p. 153 |
No Processes in Transition | p. 153 |
Selecting the Right Processes | p. 154 |
Strategic Importance | p. 154 |
Costs | p. 155 |
Importance to Customers | p. 156 |
Competitive Profile | p. 160 |
Summary | p. 163 |
Case Study: Selecting the Right Processes | p. 164 |
Chapter 10 Forming the Six Sigma Teams | p. 169 |
Designing the Team | p. 169 |
Team Composition | p. 169 |
Behavioral Considerations | p. 171 |
Team Leadership | p. 171 |
Characteristics of Successful Six Sigma Teams | p. 172 |
Clear Team Goals and Mission Statement That Are Linked to Corporate Strategy | p. 172 |
Team Goals Are Visibly Supported by Senior Management | p. 173 |
There Is an Executive Steering Committee or Individual That Is the Sponsor/Champion | p. 174 |
The Organization Has Adopted a Process Orientation and Process Owners Are Identified | p. 174 |
Customer Expectations Are Known, Measured, and Tracked | p. 175 |
Supplier Capability Is Known for All Key Inputs | p. 175 |
The Team Has Received Both Technical and Team Behavior Training | p. 176 |
The Individual Team Members Have Clearly Defined Expectations, Roles, and Responsibilities | p. 177 |
There Is Open Communication Based on Respect and Trust within the Team and within the Organization | p. 177 |
The Team Is Fully Empowered with Autonomy and Authority to Act | p. 177 |
Team Decisions Are Based on Data and Facts | p. 178 |
The Team Has Adequate Time and Resources to Perform Thoroughly | p. 178 |
The Contributions of Individuals and Teams Are Recognized and Rewarded | p. 178 |
The Teams Use Common Performance Metrics That Are Linked to the Customer and Other Performance Areas in the Organization | p. 179 |
The Team Produces Identifiable Financial and Performance Results | p. 179 |
Potential Problems with Teams | p. 179 |
Interpersonal versus Task Orientation | p. 180 |
Premature Solutions | p. 180 |
Groupthink | p. 180 |
Unequal Airtime | p. 181 |
Personalized Disagreement | p. 181 |
Nominal Group Technique | p. 181 |
Delphi Technique | p. 182 |
Summary | p. 183 |
Case Study: Forming the Teams | p. 183 |
Part IV Six Sigma Tools, Techniques, and Implementation | |
Chapter 11 Alignment of Customer Needs and Process Performance | p. 187 |
Alignment of Customer Needs with Processes | p. 187 |
Value Models | p. 189 |
Customer Expectations-Process Matrix | p. 192 |
Quality Function Deployment | p. 193 |
Summary | p. 196 |
Case Study: Aligning Customer Needs and Internal Processes | p. 197 |
Chapter 12 Analyzing Processes and Identifying Problems | p. 199 |
Process Mapping | p. 200 |
Relationship Map | p. 200 |
Preparing for Process Mapping | p. 201 |
The "As-Is" Map | p. 201 |
Problem Identification | p. 214 |
Summary | p. 217 |
Case Study: Analyzing Processes and Identifying Problems | p. 218 |
Chapter 13 Problem Solving | p. 221 |
Cause-Effect Diagrams | p. 222 |
Tree Diagrams | p. 224 |
Affinity Diagrams | p. 225 |
Failure Mode Effects Analysis | p. 226 |
Best-in-Class Benchmarking | p. 231 |
"Should-Be" Maps | p. 233 |
Summary | p. 240 |
Case Study: Problem Solving | p. 242 |
Chapter 14 Securing Management Support for Changes and Implementation | p. 243 |
The Use of "As-Is" Process Maps | p. 244 |
Cycle Time Analysis | p. 244 |
Cost/Benefit Analysis | p. 245 |
Implementation Plan | p. 246 |
Summary | p. 246 |
Case Study: Securing Management Support for Changes and Implementation | p. 251 |
Chapter 15 Implementation | p. 255 |
Managing Change | p. 255 |
Vision | p. 255 |
Resources | p. 256 |
Skills | p. 256 |
Incentives | p. 256 |
Action Plans | p. 256 |
Implementation Plans | p. 257 |
Implementation Team | p. 257 |
Organization Assessments | p. 257 |
Project Assessment | p. 258 |
Resource Requirements | p. 258 |
Complexity | p. 260 |
Time Line | p. 260 |
Areas of Responsibility | p. 260 |
Rollout Strategy | p. 261 |
Action Plans | p. 261 |
Summary | p. 262 |
Case Study: Implementation | p. 262 |
Chapter 16 Determining Process Capability | p. 271 |
Tracking the Performance Metrics | p. 271 |
Statistical Process Control | p. 272 |
Variation | p. 273 |
Process Capability | p. 281 |
Summary | p. 288 |
Case Study: Determining Process Capability | p. 289 |
Chapter 17 Summary and the Future | p. 293 |
Institutionalizing Change in People, Products, and Processes | p. 294 |
Knowledge Obsolescence | p. 295 |
Organizational Learning | p. 296 |
The New Roles of Leaders as Coaches, Facilitators, and Supporters | p. 297 |
Summary | p. 299 |
Case Study: Summary and the Future | p. 300 |
Appendix A IBM Rochester Correlation on Measurements of Employee Satisfaction, Cost of Quality, Productivity, Customer Satisfaction, and Market Share | p. 301 |
Appendix B Companies/Organizations That Comprise the American Customer Satisfaction Index (ACSI) | p. 307 |
Appendix C Johnson Controls Lost Customers Survey | p. 311 |
Appendix D Vision 2000--Total Customer Satisfaction | p. 319 |
References | p. 333 |
Index | p. 335 |