Corporate Sigma: Optimizing the Health of Your Company with Systems Thinking

290 Pages·2009·5.41 MB·English

by  Anwar El-Homsi

Corporate
Sigma
Optimizing the Health of Your
Company with Systems Thinking
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Corporate
Sigma
Optimizing the Health of Your
Company with Systems Thinking
Anwar El-Homsi
Jeff Slutsky
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Productivity Press
Taylor & Francis Group
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New York, NY 10016
© 2010 by Taylor and Francis Group, LLC
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Library of Congress Cataloging-in-Publication Data
El-Homsi, Anwar, 1951-
Corporate sigma : optimizing the health of your company with systems thinking /
Anwar El-Homsi, Jeff Slutsky.
p. cm.
Includes bibliographical references and index.
ISBN 978-1-4398-0394-3 (hbk. : alk. paper)
1. Total quality management. 2. System analysis. 3. Organizational effectiveness. 4.
Business planning. I. Slutsky, Jeff, 1956- II. Title.
HD62.15.E42 2010
658.4’013--dc22 2009042135
Visit the Taylor & Francis Web site at
http://www.taylorandfrancis.com
and the Productivity Press Web site at
http://www.productivitypress.com
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For Saadedine El-Homsi and Heather El-Homsi
Anwar El-Homsi
For Jason, Alison, and Jackie Greene and Mike Wolkoff
Jeff Slutsky
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Contents
Foreword ...............................................................................................xv
Acknowledgments ..............................................................................xvii
Introduction: Taking Charge ..............................................................xix
Chapter 1 Leadership Sigma: The Brain ............................................1
1.1 Leadership and Management ..........................................3
1.2 Purpose of Leadership .....................................................3
1.3 Importance of Leadership ...............................................4
1.4 Core Competencies for Successful Leadership .............5
1.5 Leadership Core Competencies ......................................6
1.5.1 Strong Interpersonal Skills .................................6
1.5.2 Personal Qualities ................................................7
1.5.3 Technical Knowledge ..........................................9
1.6 Leadership Tasks .............................................................11
1.6.1 Assess How the Organization Functions .......11
1.6.2 Know the Organization’s Objectives...............11
1.6.3 Determine How the Organization Can
Achieve Its Objectives and Improve ...............11
1.6.4 Have a Vision for What the Organization
Should Become ...................................................11
1.6.5 Infuse Leadership Qualities into the
Organization ......................................................12
1.7 Improving Leadership ....................................................12
1.8 Developing Leadership ..................................................13
1.9 Leadership and Systems Thinking ...............................14
Notes ...........................................................................................15
Chapter 2 Corporate Beliefs: The Soul .............................................17
2.1 Corporate Culture ..........................................................18
2.2 Organizational Mission ................................................20
2.3 Organizational Core Values ..........................................21
2.4 Organizational Vision ....................................................26
vii
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viii  •  Contents
2.5 Shared Vision — The Secret .........................................28
Notes ...........................................................................................30
Chapter 3 The Road to Corporate Wellness ....................................33
3.1 Corporate Balanced Scorecard ....................................34
3.2 The Four Perspectives ....................................................36
3.2.1 Financial Perspective ........................................36
3.2.2 External Perspective ..........................................37
3.2.3 Internal Perspective ...........................................38
3.2.4 Learning and Growth Perspective ..................38
3.3 Corporate Critical Success Factors...............................39
3.3.1 Corporate Objectives .......................................40
3.3.2 Corporate Performance Measures ..................41
3.3.3 Corporate Targets ..............................................41
3.3.4 Corporate Improvement Actions ....................41
3.3.5 Strategic Alignment by Cascading the
Balanced Scorecard ...........................................41
3.4 Strategy Map ..................................................................44
3.5 Case Study: Acme Circuits ...........................................44
3.5.1 Acme Circuits’ Corporate Balanced
Scorecard ...........................................................44
3.5.2 Acme Circuits’ Strategic Map ..........................45
Notes ...........................................................................................51
Chapter 4 Human Capital: The Heart ..............................................53
4.1 Employee Satisfaction ...................................................54
4.2 Personal Balanced Scorecards......................................56
4.3 Personal Vision ...............................................................57
4.4 Personal Mission .............................................................58
4.5 Personal Key Roles ..........................................................59
4.6 Personal Critical Success Factors ................................60
4.7 Personal Objectives ........................................................61
4.8 Personal Performance Measures ..................................62
4.9 Personal Targets ..............................................................62
4.10 Personal Improvement Actions ....................................62
Notes ...........................................................................................70
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Contents  •  ix
Chapter 5 Becoming Lean: Trimming the Fat .................................71
5.1 Brief History of Lean ......................................................72
5.2 Elimination of Waste .....................................................75
5.3 Lean Principles ................................................................79
5.4 Lean as a Business System .............................................82
5.5 Other Essential Lean Tools ..........................................84
5.5.1 Cellular Manufacturing ...................................84
5.5.2 Production Smoothing ....................................86
5.5.3 Standardized Work ..........................................86
5.5.4 Total Productive Maintenance (TPM) ...........87
5.6 Business Philosophy for Lean .......................................89
5.7 Other Resources .............................................................90
Notes ...........................................................................................91
Chapter 6 Six Sigma Protocol: The Medicine ..................................93
6.1 Brief History of Six Sigma .............................................93
6.2 What Is Six Sigma? .........................................................95
6.3 DMAIC Model ................................................................95
6.3.1 Define Phase ......................................................96
6.3.2 Measure Phase...................................................99
6.3.3 Analyze Phase .................................................100
6.3.4 Improve Phase .................................................100
6.3.5 Control Phase ...................................................101
6.4 Process Capability Study .............................................102
6.5 Six Sigma Metrics .........................................................103
6.5.1 Process Shift .....................................................105
6.5.2 Types of Metrics ...............................................106
6.5.2.1 Defect per Unit (DPU) ....................106
6.5.2.2 Rolled DPU .......................................107
6.5.2.3 Defect per Million
Opportunities (DPMO) ...................107
6.5.3 Counting Opportunities .................................108
6.6 Six Sigma Infrastructure .............................................109
6.6.1 Role of Executive Management .....................110
6.6.2 Role of Champions ..........................................111
6.6.3 Role of Finance .................................................111
6.6.4 Role of Master Black Belts ..............................111
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