Cover image for Customer centered Six Sigma : linking customers, process improvement, and financial results
Title:
Customer centered Six Sigma : linking customers, process improvement, and financial results
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Publication Information:
Milwaukee, Wis. : ASQ Quality Press, 2001
ISBN:
9780873894906

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30000010049768 HF5415.5 N37 2001 Open Access Book Advance Management
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30000010129466 HF5415.5 N37 2001 Open Access Book Book
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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 Illustrationsp. xiii
Acknowledgmentsp. xvii
Prefacep. xix
Part I Why Six Sigma?
Chapter 1 Becoming Customer Centered Is Not a Choicep. 3
Why Six Sigma?p. 3
Customer Expectationsp. 4
Technological Changep. 4
Global Competitionp. 4
Market Fragmentationp. 5
Workforce Changesp. 5
Organizational Changep. 5
Responses by World-Class Companiesp. 6
Customer-Driven Continuous Improvementp. 6
Closer Relationships with Customers and Suppliersp. 7
Innovation and Creativityp. 7
Global, External Orientationp. 8
Core Competenciesp. 8
Human Intellectp. 8
The Concept of Six Sigmap. 9
Normal Variationp. 10
Basic Statisticsp. 10
Process Variationp. 11
Six Sigma Goalsp. 12
Summaryp. 14
Case Study: Becoming Customer Focusedp. 15
Chapter 2 Linking the Customer, Customer Satisfaction, and Six Sigma Results to Financial Performancep. 17
Market Sharep. 18
Loyaltyp. 19
Share of Spendp. 23
Process Improvementp. 25
Stock Pricep. 27
VA[superscript 3]p. 32
Customer Value Addedp. 32
People Value Addedp. 33
Economic Value Addedp. 34
Summaryp. 35
Case Study: Linking Customer Satisfaction Results to Financial Performancep. 35
Part II Capturing the Voice of the Customer
Chapter 3 Global Customer Satisfaction Surveysp. 41
The Customer Satisfaction Measurement Processp. 42
Step 1 Define the Objectivesp. 42
Step 2 Develop the Research Designp. 44
Step 3 Identify the Attributesp. 45
Secondary Sourcesp. 46
Internal Sourcesp. 47
Customer Sourcesp. 47
Step 4 Design the Questionnairep. 48
Step 5 Design the Sampling Planp. 52
Step 6 Pretest the Programp. 54
Step 7 Gather the Datap. 54
Step 8 Analyze the Datap. 54
Step 9 Use the Datap. 56
Step 10 Improve the CSM Programp. 56
Summaryp. 57
Case Study: Global Customer Satisfaction Surveysp. 57
Chapter 4 Transaction surveysp. 59
Organizational Commitmentp. 59
Continuous Improvementp. 62
Expertise Availablep. 62
Defining the Research Objectivesp. 63
Size of the Customer Basep. 63
Questionnaire Designp. 64
A Questionnaire Is a Funnelp. 64
Keep It Simplep. 64
Be Specificp. 65
No Opinion/Don't Knowp. 65
Introductionsp. 65
Directionsp. 66
The First Questionsp. 66
Expectations Measuresp. 66
Performance Ratingsp. 67
Open-Ended Questionsp. 68
Research Designp. 68
Reliabilityp. 68
Validityp. 69
Biasp. 69
Research Design Methodologiesp. 69
Personal Interviewsp. 69
Telephone Interviewsp. 70
Mail Surveysp. 70
Electronic Surveysp. 71
Sampling Proceduresp. 71
Using a Samplep. 71
Develop a Customer Listp. 72
Select the Sample Procedurep. 72
Sequential Samplesp. 72
Determine the Desired Sample Sizep. 72
Variation in Customer Basep. 73
Precisionp. 73
Confidence Levelp. 74
Multiple Segments and Measuresp. 74
Sample Size Guidelinesp. 75
Pretestingp. 75
Data Analysisp. 76
Qualitative Analysisp. 76
Quantitative Analysisp. 77
Tracking Analysisp. 77
Means and Standard Deviationsp. 77
Frequency Distributionp. 78
Communicating Your CSM Resultsp. 79
Critical Processes Ultimately Drive Customer Satisfactionp. 79
Summaryp. 80
Case Study: Transaction Surveysp. 80
Chapter 5 Customer Loyalty Analysisp. 83
The Value Payoff Modelp. 83
Box 1 Customer Perceptionp. 84
Box 2 Valuep. 85
Box 3 Perceptual Outcomesp. 85
Box 4 Customer Loyaltyp. 86
Box 5 Market Sharep. 86
Box 6 Reduced Costsp. 87
Box 7 Employee Attitudesp. 87
Box 8 Profitp. 88
Box 9 Shareholder Valuep. 88
Box 10 Imagep. 88
Box 11 Corporate Communicationsp. 89
Model Summaryp. 89
Two-Factor Model of Customer Satisfactionp. 89
Lost Customer Analysisp. 93
Which Products?p. 93
Which Customers?p. 93
When Does Defection Occur?p. 94
Interview Alternativesp. 94
Personal Interview Agendap. 95
Telephone Interviewsp. 96
Data Analysisp. 96
Summaryp. 96
Case Study: Customer Loyalty Analysisp. 97
Chapter 6 Complaint Management Systemsp. 99
Encourage Complaints!p. 100
Why Don't People Complain?p. 104
Characteristics of a World-Class Complaint Systemp. 106
Easy Access: How Customers Want to Complainp. 106
Fast Responsesp. 108
No Hasslesp. 109
Empowered Employeesp. 110
Employee Staffing and Trainingp. 110
Customer Databasesp. 112
Follow-Upp. 113
Organization Commitmentp. 114
Summaryp. 114
Case Study: Complaint Handlingp. 115
Chapter 7 Building Relationships with Key Accountsp. 117
Relationship Builder Processp. 118
Define Objectivesp. 118
Objective 1 Create More Personal Contactp. 118
Objective 2 Better Understanding of the Customerp. 119
Objective 3 Identify Future Plansp. 120
Objective 4 Calculate Financial Impactp. 120
Identify Key Accountsp. 121
Identify Team Membersp. 121
Develop a List of Key Driversp. 122
Develop the Interview Instrumentp. 123
Train the Teamp. 126
Arrange the Interviewp. 127
Conduct the Interviewp. 127
Analyze Resultsp. 128
Communicate within the Businessp. 128
Make Process and/or Behavioral Changesp. 129
Communicate to Customer and to Businessp. 129
Monitor Process/Behavioral Changesp. 130
Measure Customer Perceptions/Behaviorsp. 130
Revise as Necessaryp. 130
Relationship Builder Summaryp. 131
Other Types of Proactive Contactp. 131
Executive Contactp. 131
Customer Visitsp. 131
New Product Development Teamsp. 132
Beta Sitesp. 132
Customer Panelsp. 133
Customer Representatives on Internal Teamsp. 133
Adopt-a-Customer Programsp. 133
Setting the Agendap. 133
Summaryp. 134
Case Study: Building Relationships with Key Accountsp. 135
Part III Preparing the Organization for Six Sigma
Chapter 8 Corporate Strategy/Leadershipp. 139
Vision/Mission Statementsp. 139
Senior Leadership, Visible Commitment, and Involvementp. 140
Hoshin Planningp. 141
Balanced Scorecardp. 142
Summaryp. 148
Case Study: Corporate Strategiesp. 148
Chapter 9 Selecting the Right Processesp. 151
Which Processes Not to Selectp. 151
No Senior Management Supportp. 152
No Support from Process Ownersp. 152
Ambiguous Processesp. 153
No Trivial Processesp. 153
No Processes in Transitionp. 153
Selecting the Right Processesp. 154
Strategic Importancep. 154
Costsp. 155
Importance to Customersp. 156
Competitive Profilep. 160
Summaryp. 163
Case Study: Selecting the Right Processesp. 164
Chapter 10 Forming the Six Sigma Teamsp. 169
Designing the Teamp. 169
Team Compositionp. 169
Behavioral Considerationsp. 171
Team Leadershipp. 171
Characteristics of Successful Six Sigma Teamsp. 172
Clear Team Goals and Mission Statement That Are Linked to Corporate Strategyp. 172
Team Goals Are Visibly Supported by Senior Managementp. 173
There Is an Executive Steering Committee or Individual That Is the Sponsor/Championp. 174
The Organization Has Adopted a Process Orientation and Process Owners Are Identifiedp. 174
Customer Expectations Are Known, Measured, and Trackedp. 175
Supplier Capability Is Known for All Key Inputsp. 175
The Team Has Received Both Technical and Team Behavior Trainingp. 176
The Individual Team Members Have Clearly Defined Expectations, Roles, and Responsibilitiesp. 177
There Is Open Communication Based on Respect and Trust within the Team and within the Organizationp. 177
The Team Is Fully Empowered with Autonomy and Authority to Actp. 177
Team Decisions Are Based on Data and Factsp. 178
The Team Has Adequate Time and Resources to Perform Thoroughlyp. 178
The Contributions of Individuals and Teams Are Recognized and Rewardedp. 178
The Teams Use Common Performance Metrics That Are Linked to the Customer and Other Performance Areas in the Organizationp. 179
The Team Produces Identifiable Financial and Performance Resultsp. 179
Potential Problems with Teamsp. 179
Interpersonal versus Task Orientationp. 180
Premature Solutionsp. 180
Groupthinkp. 180
Unequal Airtimep. 181
Personalized Disagreementp. 181
Nominal Group Techniquep. 181
Delphi Techniquep. 182
Summaryp. 183
Case Study: Forming the Teamsp. 183
Part IV Six Sigma Tools, Techniques, and Implementation
Chapter 11 Alignment of Customer Needs and Process Performancep. 187
Alignment of Customer Needs with Processesp. 187
Value Modelsp. 189
Customer Expectations-Process Matrixp. 192
Quality Function Deploymentp. 193
Summaryp. 196
Case Study: Aligning Customer Needs and Internal Processesp. 197
Chapter 12 Analyzing Processes and Identifying Problemsp. 199
Process Mappingp. 200
Relationship Mapp. 200
Preparing for Process Mappingp. 201
The "As-Is" Mapp. 201
Problem Identificationp. 214
Summaryp. 217
Case Study: Analyzing Processes and Identifying Problemsp. 218
Chapter 13 Problem Solvingp. 221
Cause-Effect Diagramsp. 222
Tree Diagramsp. 224
Affinity Diagramsp. 225
Failure Mode Effects Analysisp. 226
Best-in-Class Benchmarkingp. 231
"Should-Be" Mapsp. 233
Summaryp. 240
Case Study: Problem Solvingp. 242
Chapter 14 Securing Management Support for Changes and Implementationp. 243
The Use of "As-Is" Process Mapsp. 244
Cycle Time Analysisp. 244
Cost/Benefit Analysisp. 245
Implementation Planp. 246
Summaryp. 246
Case Study: Securing Management Support for Changes and Implementationp. 251
Chapter 15 Implementationp. 255
Managing Changep. 255
Visionp. 255
Resourcesp. 256
Skillsp. 256
Incentivesp. 256
Action Plansp. 256
Implementation Plansp. 257
Implementation Teamp. 257
Organization Assessmentsp. 257
Project Assessmentp. 258
Resource Requirementsp. 258
Complexityp. 260
Time Linep. 260
Areas of Responsibilityp. 260
Rollout Strategyp. 261
Action Plansp. 261
Summaryp. 262
Case Study: Implementationp. 262
Chapter 16 Determining Process Capabilityp. 271
Tracking the Performance Metricsp. 271
Statistical Process Controlp. 272
Variationp. 273
Process Capabilityp. 281
Summaryp. 288
Case Study: Determining Process Capabilityp. 289
Chapter 17 Summary and the Futurep. 293
Institutionalizing Change in People, Products, and Processesp. 294
Knowledge Obsolescencep. 295
Organizational Learningp. 296
The New Roles of Leaders as Coaches, Facilitators, and Supportersp. 297
Summaryp. 299
Case Study: Summary and the Futurep. 300
Appendix A IBM Rochester Correlation on Measurements of Employee Satisfaction, Cost of Quality, Productivity, Customer Satisfaction, and Market Sharep. 301
Appendix B Companies/Organizations That Comprise the American Customer Satisfaction Index (ACSI)p. 307
Appendix C Johnson Controls Lost Customers Surveyp. 311
Appendix D Vision 2000--Total Customer Satisfactionp. 319
Referencesp. 333
Indexp. 335