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Searching... | 30000010206229 | HD9980.5 T39 2009 | Open Access Book | Book | Searching... |
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Summary
Summary
Over the past couple of decades, growth in the number of new service and not-for-profit organizations has out-paced manufacturing in the global economy. Six Sigma and Lean, two of the most successful initiatives for improving quality and productivity rooted in the manufacturing sector, are now needed by organizations in the non-manufacturing sectors of the economy. With the ever-growing demands of customers, ensuring quality and productivity in service organizations as a distinctive core competence is becoming essential to achieving a competitive advantage and maintaining customer loyalty for long-term survival.
Current books on Lean Six Sigma for service or transactional organizations either require a significant technical background, or are rather conceptual in nature and lack the detail of the tools, how to use them, and the practical skill-building exercises needed to give readers the ability to actually implement Lean Six Sigma in their organizations. This book fills the void.
Written for the typical business professional, Lean Six Sigma Service Excellence effectively translates the concepts of Lean Six Sigma from a manufacturing environment to a service delivery environment. It is a user friendly guide to successfully implementing Lean Six Sigma practices in non-manufacturing organizations. It is also an inexpensive path to Green Belt certification.
Mr. Taylor provides an overview of the Lean Six Sigma concepts and step-by-step examples of how to apply each of the relevant tools in practical situations. Next, readers will work through several problems to exercise their new found understanding. This learning approach of application and exercise should be of particular interest to those interested in, but unable to afford the large expense of most Lean Six Sigma training courses. Dedicated to executives and managers of service and transactional organizations, Lean Six Sigma Service Excellence emphasizes how productivity can be used as a distinctive competence for achieving and maintaining competitive advantage in non-manufacturing environments.
Author Notes
Gerald Taylor is Founder and President of The Performance Management Group LLC, a firm that specializes in performance improvement and leadership development. He has over 15 years experience designing and implementing quality and Six Sigma solutions as an internal corporate consultant and as an external engagement manager for service organizations such as Sprint Long Distance, Automatic Data Processing, Logix Communications, Dynegy Global Communications Corporation and Oneok Corporation.
Mr. Taylor and his associates are certified Six Sigma Black Belts who train and certify Six Sigma Black Belt professionals and quality practitioners to serve as technical experts in their working environments. He is also a certified Malcolm Baldrige examiner and two-time quality examiner for the Arizona Governor's Spirit of Excellence in Government Award. He was previously an associate professor of business administration at Western International University and a faculty member for Mesa College. Gerald currently serves as a board member for the Arizona Chapter of the Association for Strategic Planning and he is a published author of various works in the field of Six Sigma, quality improvement and service management. He earned his undergraduate degree in management and his MBA from the WP Carey School of Business at Arizona State University.
Table of Contents
Preface | p. ix |
In Keeping | p. xiii |
Acknowledgments | p. xv |
About the Author | p. xvii |
Web Added Value | p. xix |
Chapter 1 The Quest for Productivity | p. 1 |
What Is Productivity? | p. 2 |
Productivity and Global Implications: Outsourcing | p. 4 |
Quality and Productivity: A Historical Perspective | p. 4 |
The Cost of Poor Quality | p. 6 |
Quality Improvement and Corporate America | p. 7 |
The Value Proposition of Quality Improvement | p. 8 |
The Beneifts of the Quality Movement in Corporate America | p. 9 |
The Quality Movement in America Has Delivered on Its Promise | p. 10 |
Malcolm Baldrige National Quality Program | p. 10 |
Six Sigma Quality Improvement | p. 11 |
The Foundation of the Quality Movement in America | p. 12 |
Conclusion | p. 13 |
Chapter 2 It's the Process! | p. 15 |
Paying the Ultimate Price for Not Being Process Perfect | p. 15 |
It's the Process! | p. 16 |
Process Vocabulary: A Common Language | p. 17 |
Properties of a Well-Designed Process Management System | p. 17 |
Process Design | p. 21 |
Flowcharting: A Traditional Process Mapping Method | p. 21 |
SIPOC Process Mapping | p. 24 |
Requirements Based Process Design | p. 27 |
Creating Cross-Functional Organizations | p. 31 |
Conclusion | p. 33 |
Chapter 3 The Voice of the Customer | p. 35 |
What Is the Voice of the Customer? | p. 36 |
Why Focus on Customer Loyalty? | p. 36 |
Properties of a Well-Designed Customer Loyalty Model | p. 38 |
How to Assess the Voice of the Customer | p. 40 |
Voice of the Customer Assessment Techniques | p. 41 |
Qualitative Research Methods | p. 42 |
Quantitative Research: Surveys | p. 43 |
Assessing the Voice of the Customer: An Analysis of Customer Importance and Satisfaction | p. 47 |
Conclusion | p. 50 |
Chapter 4 Analyzing Performance Variation | p. 51 |
Analyzing Performance Variation | p. 51 |
The Scientific Basis for Performance Variation | p. 52 |
What Is Performance Variation? | p. 53 |
Analyzing Baseline Performance: The Run Chart | p. 54 |
Common Cause and Special Cause Management Actions | p. 62 |
Conclusion | p. 62 |
Chapter 5 The Basic Six Sigma Tool Kit | p. 63 |
The Six Sigma Analytical Tool Kit | p. 63 |
Data Sheet | p. 65 |
Histogram | p. 66 |
Cause and Effect Diagram | p. 71 |
Scatter Diagram | p. 75 |
Pareto Analysis | p. 79 |
Statistical Process Control for Service Excellence | p. 84 |
Control Chart Selection | p. 85 |
Control Chart Descriptions | p. 90 |
XmR Chart: Individual Measurement with Moving Range Chart | p. 90 |
X,R Chart: Average and Range Chart | p. 94 |
X,S Chart: Average and Standard Deviation Chart | p. 99 |
p Chart: Proportion of Defectives Chart | p. 104 |
np Chart: Number of Defectives Chart | p. 107 |
c Chart: Number of Defects Chart | p. 110 |
u Chart: Average Number of Defects per Unit Chart | p. 113 |
Performance Variation: A Review | p. 116 |
Control Chart Analysis | p. 117 |
Performance Evaluation: Process Capability Analysis | p. 123 |
Conclusion | p. 128 |
Chapter 6 Performance Metrics and Dashboards: Building Your Performance Measurement System | p. 131 |
The Value Stream | p. 132 |
The Hidden Factory | p. 133 |
Measuring Service Quality | p. 135 |
Measuring Service Efficiency | p. 137 |
Measuring Service Production | p. 138 |
Measuring Operational Effectiveness | p. 139 |
Measuring Cost Effectiveness | p. 141 |
Conclusion | p. 143 |
Chapter 7 The Six Sigma Project Team | p. 145 |
Team Roles and Responsibilities | p. 145 |
Project Team Leader: Black Belt/Green Belt | p. 145 |
Project Team Facilitator: Master Black Belt/Black Belt | p. 147 |
Project Team Member: Green Belt or Yellow Belt | p. 148 |
How to Establish a Six Sigma Project Team | p. 149 |
How to Support Six Sigma Project Teams | p. 149 |
Stages of Team Evolution | p. 150 |
Forming | p. 150 |
Storming | p. 151 |
Norming | p. 151 |
Performing | p. 152 |
Remedies for the Problems of Team Evolution | p. 152 |
Conclusion | p. 153 |
Chapter 8 Six Sigma Soft Skills: Working with and through Others | p. 155 |
Successful Team Attributes | p. 156 |
Acceptable Norms: Ground Rules | p. 156 |
Purpose | p. 158 |
Developing a Mission Statement | p. 158 |
Consensus Building | p. 161 |
Groupthink | p. 163 |
Understanding and Managing Change | p. 165 |
Change and the Six Sigma Experience | p. 166 |
Unfreezing the Business Context | p. 167 |
Implement Six Sigma | p. 168 |
Refreeze the Business Context | p. 169 |
Conclusion | p. 169 |
Chapter 9 Management by Fact: The DMAIC Approach to Performance Improvement | p. 171 |
Fire Fighting | p. 171 |
What Is Management by Fact? | p. 172 |
What Is Six Sigma? | p. 173 |
What Six Sigma Is Not | p. 174 |
Key Six Sigma Concepts | p. 174 |
From Root Cause to Performance Improvement: PDCA | p. 176 |
The DMAIC Process: A Structured Approach to Improvement | p. 177 |
Define Phase | p. 178 |
Measure Phase | p. 181 |
Analyze Phase | p. 184 |
Improve Phase | p. 186 |
Control Phase | p. 187 |
Six Sigma Project Management Overview | p. 187 |
Six Sigma Master Project Plan | p. 188 |
Six Sigma Personal Action Plan | p. 188 |
Business Reviews and Project Briefings | p. 189 |
Conclusion | p. 193 |
Chapter 10 Deploying Your Performance Excellence System | p. 195 |
Attributes of a Strong Performance Excellence System | p. 196 |
Focusing on Core Operating Processes | p. 198 |
Integrating Measurements | p. 199 |
Eliminating Non-Value-Added Tasks | p. 201 |
Conclusion | p. 203 |
Chapter 11 The Fundamentals of Lean Thinking for Service Excellence: Doing More with Less! | p. 205 |
Lean Thinking | p. 205 |
What Is Lean? | p. 205 |
Value: Value Creation and Value Added | p. 207 |
Muda: Waste, Waste, Waste | p. 210 |
Value Stream Mapping: Eliminating the Six Sources of Service Muda | p. 212 |
Determine the Service Process | p. 213 |
Map the Current State | p. 213 |
Analyze the Process | p. 214 |
Define the Future State | p. 214 |
PDCA: Plan, Do, Check, Act | p. 215 |
5S: Getting Your Service House in Order | p. 215 |
Sort | p. 216 |
Set in Order | p. 217 |
Shine | p. 217 |
Standardize | p. 217 |
Sustain | p. 218 |
Conclusion | p. 218 |
Chapter 12 Lean Six Sigma Service Excellence: A Road Map to Green Belt Certification | p. 219 |
Lean Six Sigma Service Excellence Green Belt Certification Program | p. 220 |
Tools | p. 221 |
Glossary | p. 223 |
References | p. 233 |
Appendix A Chapter 4 Exercise Answers | p. 235 |
Run Chart Construction Exercise | p. 235 |
Run Chart Analysis Exercises | p. 236 |
Appendix B Chapter 5 Exercise Answers | p. 239 |
Histogram Exercise | p. 239 |
Cause and Effect Diagram Exercise | p. 240 |
Scatter Diagram Exercise | p. 241 |
Pareto Analysis Exercise | p. 242 |
Control Chart Selection Exercises | p. 246 |
Control Chart Analysis Exercise | p. 247 |
Appendix C Additional Lean Six Sigma Tools and Methods | p. 249 |
Correlation and Regression Analysis | p. 249 |
Correlation Analysis | p. 249 |
Simple Linear Regression Analysis | p. 252 |
Financial Impact Analysis: Net Present Value, Return on Investment, and Payback Period | p. 259 |
Net Present Value | p. 259 |
Return on Investment | p. 262 |
Payback Period | p. 263 |
Financial Impact Analysis Exercise | p. 264 |
Data Collection Efforts | p. 265 |
Planning | p. 265 |
Calculating Sample Size | p. 267 |
Systematic Sampling | p. 272 |
Stratified Sampling | p. 273 |
Block Sampling | p. 274 |
Operational Definition | p. 274 |
Types of Data | p. 275 |
Net Present Value Exercise Answer | p. 277 |
Financial Impact Analysis Exercise Answer | p. 277 |
Index | p. 279 |