Table Of Content

Business Performance through Lean Six Sigma Also Available from ASQ Quality Press: Enterprise Process Mapping: Integrating Systems for Compliance and Business Excellence Charles G. Cobb Insights to Performance Excellence 2005: An Inside Look at the 2005 Baldrige Award Criteria Mark L. Blazey The Certified Six Sigma Black Belt Handbook Donald W. Benbow and T.M. Kubiak Lean Enterprise: A Synergistic Approach to Minimizing Waste William A. Levinson and Raymond A. Rerick Lean Strategies for Product Development: Achieving Breakthrough Performance in Bringing Products to Market Clifford Fiore Six Sigma Project Management: A Pocket Guide Jeffrey N. Lowenthal The Six Sigma Journey from Art to Science Larry Walters Lean-Six Sigma for Healthcare: A Senior Leader Guide to Improving Cost and Throughput Chip Caldwell, Jim Brexler, and Tom Gillem Stop Rising Healthcare Costs Using Toyota Lean Production Methods: 38 Steps for Improvement Robert Chalice To request a complimentary catalog of ASQ Quality Press publications, call 800-248- 1946, or visit our Web site at http://qualitypress.asq.org. Business Performance through Lean Six Sigma Linking the Knowledge Worker, the Twelve Pillars, and Baldrige James T. Schutta ASQ Quality Press Milwaukee, Wisconsin American Society for Quality, Quality Press, Milwaukee 53203 ©2006 by James T. Schutta All rights reserved. Published 2006 Printed in the United States of America 12 11 10 09 08 07 06 5 4 3 2 1 Library of Congress Cataloging-in-Publication Data Schutta, James T., 1944– Business performance through lean six sigma : linking the knowledge worker, the twelve pillars, and Baldrige / by James T. Schutta. p. cm. Includes bibliographical references and index. ISBN 0-87389-658-0 (alk. paper) 1. Organizational effectiveness. 2. Six sigma (Quality control standard) 3. Customer relations. 4. Production management—Quality control. 5. Knowledge workers. 6. Organizational change. I. Title. HD58.9.S3844 2005 658.48(cid:1)013—dc22 2005007651 ISBN-13: 978-0-87389-658-0 ISBN-10: 0-87389-658-0 No part of this book may be reproduced in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Publisher: William A. Tony Acquisitions Editor: Annemieke Hytinen Project Editor: Paul O’Mara Production Administrator: Randall Benson ASQ Mission: The American Society for Quality advances individual, organizational, and community excellence worldwide through learning, quality improvement, and knowledge exchange. Attention Bookstores, Wholesalers, Schools, and Corporations: ASQ Quality Press books, videotapes, audiotapes, and software are available at quantity discounts with bulk purchases for business, educational, or instructional use. For information, please contact ASQ Quality Press at 800-248-1946, or write to ASQ Quality Press, P.O. Box 3005, Milwaukee, WI 53201-3005. To place orders or to request a free copy of the ASQ Quality Press Publications Catalog, including ASQ membership information, call 800-248-1946. Visit our Web site at www.asq.orgor http://qualitypress.asq.org. Printed on acid-free paper I would like to dedicate this book to Mary Jane, my wife, for the loving and caring support as this book was being composed. Contents List of Figures and Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xvii Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxi Chapter 1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Paradigm Shift . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 The Six Sigma Journey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Knowledge Worker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 The Malcolm Baldrige National Quality Award . . . . . . . . . . . . . . . . . . . . . . . . . 2 Customer Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Management Involvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Strategic Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Six Sigma Project Selections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 The Twelve Pillars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Chapter 2 Basic Concepts Required for the Lean Six Sigma Implementation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Chapter 3 Pillar One: Market and Customer Knowledge . . . . . . . . . . . . . . . . 19 Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Market Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Establishing Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Strategic Approaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Change Leader Concepts for the Next Century . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Customer Needs Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 The Customer Data Collection Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Focusing on the Customer Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 vii viii Contents Chapter 4 Pillar Two: Leadership Commitment and Business Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 The Malcolm Baldrige National Quality Award . . . . . . . . . . . . . . . . . . . . . . . . . 32 Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Champions of the Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Staff Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Project Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Cultural Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Key Business Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Training Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 The Concept of Variation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Chapter 5 Pillar Three: The Strategic Planning Process and Project Alignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Values and Beliefs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Strategic Planning Value Chain Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 The Development of Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Strategic Planning Tools SWOT and TOWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Strategy Mapping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Setting Objectives around the Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Alignment of Black Belt Projects to the Strategy . . . . . . . . . . . . . . . . . . . . . . . . 61 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Chapter 6 Pillar Four: The Training and Consulting Requirements . . . . . . . . 63 Training for Black Belts, Green Belts, DFSS, Champions, and Yellow Belts . . . . 64 Design for Six Sigma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Champion Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Yellow Belt Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Training Application and Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Consulting Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Chapter 7 Pillar Five: The DMAIC, DMADVIC, and Lean Processes . . . . . . . 71 DMAIC Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 DMADVIC Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Lean Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Lead Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Value Stream Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 5S Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Error-Proofing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 SMED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Total Productive Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Process Differences of DMAIC and DMADVIC . . . . . . . . . . . . . . . . . . . . . . . . 85 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Contents ix Chapter 8 Pillar Six: Voice of the Customer . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Attributes and Consequences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Interviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Focus Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 Identifying the Consequences from the Interview Transcripts . . . . . . . . . . . . . . . 95 Other Sources of Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Organizing the Customer Voice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Alternative Importance Scales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100 Chapter 9 Pillar Seven: Quality Function Deployment . . . . . . . . . . . . . . . . . .101 Organizing the Technical Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102 The Doctor’s Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105 Developing the Quality House . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107 Competitive Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112 Technical Correlations for the Roof of the Quality House . . . . . . . . . . . . . . . . . .114 The Final Quality House for the Delivered Pizza . . . . . . . . . . . . . . . . . . . . . . . .118 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122 Chapter 10 Pillar Eight: Process Mapping and Customer and Process Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123 Process Mapping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124 Process Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126 Example of Ordering a Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127 Measurement System Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128 Process Measures Accuracy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130 Critical to Process Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135 Chapter 11 Pillar Nine: Process Capability and Analysis . . . . . . . . . . . . . . . . .137 Process Stability and Variation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .138 Process Capability Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .148 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .148 Chapter 12 Pillar Ten: Process Solutions and Improvements . . . . . . . . . . . . . .149 Selecting the Best Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150 Design Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154 Test Run and FMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154 Checking the Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .158 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159 Chapter 13 Pillar Eleven: Maintaining the Improvement . . . . . . . . . . . . . . . .161 Making the Change Permanent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .162 Controlling the Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .162 Dominance Factor of the Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163 Change Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164 Communicating Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164 x Contents The Organizational Cultural Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165 Types of Process Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165 Corrective Action Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .167 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169 Chapter 14 Pillar Twelve: Planning for Financial Returns, Recognition, and Rewards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171 Financial Project Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172 Financial Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173 Financial Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173 Financial Returns Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .174 The Cost of Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .175 Project Cost Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177 Recognition and Rewards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178 Recognition Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181 Chapter 15 The New Paradigm of Six Sigma . . . . . . . . . . . . . . . . . . . . . . . . . .183 Process Focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183 Strategic Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183 Customer Focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184 Data and Information Focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184 Improvement Focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184 Problem-Solving Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .185 Cultural Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .185 Project Selection Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186 Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186 Knowledge Worker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186 Teamwork Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .187 Prevention-Based Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .187 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .188 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189 Chapter 16 The Knowledge Worker and Six Sigma . . . . . . . . . . . . . . . . . . . . .191 Black Belt Credentials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .191 Knowledge Worker Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .192 The Black Belt as the Knowledge Worker . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193 Facts about the Knowledge Worker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193 The Knowledge Worker as the Change Agent . . . . . . . . . . . . . . . . . . . . . . . . . . .195 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197 Chapter 17 The Tool Sets Used for Diverse Industries . . . . . . . . . . . . . . . . . . .199 Manufacturing Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .199 Service Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .199 Service and Not-for-Profit Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .201 Chapter Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .202 Suggestions for Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .202

Business performance through lean six sigma : linking the knowledge worker, the twelve pillars, and Baldrige PDF

329 Pages·2006·2.023 MB·English

by James T. Schutta

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Author:	James T. Schutta
Publication Year:	2006
Pages:	329
Language:	English
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