Six SIGMA: The Breakthrough Management Strategy Revolutionizing the World's Top Corporations In-Stock: Ships 2-3 days. Mikel J. Harry,Richard Schroeder / Hardcover / Doubleday & Company, Incorporated / December 1999 Our Price: $19.25, You Save 30% Excerpt The Six Sigma Phenomenon We believe that Six Sigma is the most powerful breakthrough management tool ever devised. What is Six Sigma? It is a business process that allows companies to drastically improve their bottom line by designing and monitoring everyday business activities in ways that minimize waste and resources while increasing customer satisfaction. Six Sigma guides companies into making fewer mistakes in everything they do-from filling out a purchase order to manufacturing airplane engines-eliminating lapses in quality at the earliest possible occurrence. Quality-control programs have focused on detecting and correcting commercial, industrial, and design defects. Six Sigma encompasses something broader: It provides specific methods to re-create the process so that defects and errors never arise in the first place. Throughout this book, you will encounter new ideas and principles-some of which will run contrary to what managers have learned in school or professional practice. Six Sigma represents extraordinary sense, not ordinary or common sense; common sense rarely produces extraordinary results. It is our belief that once managers and their companies understand what Six Sigma is and how it works, they will begin to see that many well-accepted past management practices and quality-control methods are less than optimal, or are even wrong. Industries are desperate to find new ways to buoy profitability. That is why companies as diverse as AlliedSignal, General Electric, Sony, Honda, Maytag, Raytheon, Texas Instruments, Bombardier, Canon, Hitachi, Lockheed Martin, and Polaroid have adopted Six Sigma. Many of these companies are averse to management fads. But they have embraced Six Sigma because they believe the initiative will help them increase market share, decrease costs, and grow profit margins. As a result, they are beginning to tie quality directly to their bottom line. Six Sigma produces superior financial results, using business strategies that not only revive companies but help them leapfrog ahead of their competition in terms of market share and profitability. By reaching for the seemingly impossible, companies achieve the impossible. But the biggest reason for the incredible buzz about Six Sigma throughout the business community has been its astonishing success at dramatically improving a company's bottom-line profitability. As a result, Six Sigma has become the darling of Wall Street. Jennifer Murphy, an analyst with Morgan Stanley, Dean Witter, Discover & Co., spent three days at our ranch in Payson and at our Six Sigma Academy in Scottsdale, Arizona, a teaching facility we designed to educate and train executives in the principles of Six Sigma so that they can transform their companies into world-class organizations. Impatient with the negligible effect quality programs have had on the bottom line, Murphy was astonished by what she learned. "Six Sigma companies . . . achieve faster working capital turns; lower capital spending as capacity is freed up; more productive R&D spending; faster new product development; and greater customer satisfaction," she wrote upon her return. She estimates that by the year 2000, GE's gross annual benefit from Six Sigma could be as high as $6.6 billion, or 5.5 percent of sales. Here are just a few reasons for the enthusiasm so many analysts on Wall Street voice: General Electric's Jack Welch, a self-proclaimed cynic when it comes to quality programs, describes Six Sigma as "the most important initiative GE has ever undertaken." GE's operating income, a critical measure of business efficiency and profitability, hovered around the 10 percent level for decades. In 1995, Welch mandated that each GE operation, from credit card services to aircraft engine plants to NBC-TV, work toward achieving Six Sigma. GE averaged about 3.5 sigma when it introduced the program. With Six Sigma embedding itself deeper into the organization's processes, GE achieved the previously "impossible" operating margin of 16.7 percent in 1998, up from 13.6 percent in 1995 when GE implemented Six Sigma. In dollar amounts, Six Sigma delivered more than $300 million to GE's 1997 operating income, and in 1998, the financial benefits of Six Sigma more than doubled, to over $600 million. Larry Bossidy, CEO of AlliedSignal Inc., brought the $14.5 billion industrial giant back from the verge of bankruptcy by implementing the Six Sigma Breakthrough Strategy. The company has now trained thousands of employees from every business unit and staff function in Six Sigma and the Breakthrough Strategy, with the goal of increasing productivity 6 percent each year in its industrial sectors. Broad-base Six Sigma initiatives allowed operating margin in the first quarter of 1999 to grow to a record 14.1 percent from 12 percent one year earlier. Since Bossidy implemented the program in 1994, the cumulative impact of Six Sigma has been a savings in excess of $2 billion in direct costs. Former AlliedSignal executive Daniel P. Burnham, who became Raytheon's CEO in 1998, has made Six Sigma a cornerstone of the company's strategic plan. By pursuing Six Sigma quality levels throughout the company, Burnham expects Raytheon to improve its cost of doing business by more than $1 billion annually by 2001. Since taking over GE's industrial diamonds business in Worthington, Ohio, in 1994, William Woodburn has increased the operation's return on investment fourfold and cut the operation's costs in half by employing the Six Sigma Breakthrough Strategy. He and his team have made their existing facilities so efficient that they have eliminated the need for new plants and equipment for at least another ten years. Woodburn and GE's industrial diamond business exemplify how Six Sigma can enable a company to cut costs, enhance productivity, and eliminate the need for new plant and equipment investments. Polaroid Corporation's Joseph J. Kasabula, quality strategy manager for product development and worldwide manufacturing, believes that the most compelling reason companies embrace Six Sigma is its impact on the bottom line. While other programs may improve quality, Kasabula believes they do not focus on increasing a company's profits. With Six Sigma, companies focus on the processes that affect quality and profit margins on a project-by-project basis. Six Sigma is helping Polaroid to add 6 percent to its bottom line each year. Asea Brown Boveri (ABB), which successfully applied the Six Sigma Breakthrough Strategy to its power transformer facility in Muncie, Indiana, has reduced measurement equipment error by 83 percent; piece count error from 8.3 percent to 1.3 percent; and no-load loss to within 2 percent. ABB also improved material handling, resulting in an annual estimated cost savings of $775,000 for a single process within a single plant. We believe the Six Sigma Breakthrough Strategy should be of paramount interest to any forward-thinking executive, manager, and public administrator who wants to make his or her organization more competitive and profitable, and enhance its ability to drive change. Six Sigma principles apply to any business of any size. It applies to far more than just industrial processes-it applies to engineering, product design, and any commercial process, from processing mortgage applications, to credit card transactions, to customer service call centers. By attacking "variation" during the design of products and services, it's possible for any organization to achieve unprecedented profitability. How does Six Sigma work? The first step in the Breakthrough Strategy is to ask a new set of questions, questions that take you out of your comfort zone, that force you to query what you have taken for granted, and that ultimately provide you with new direction. Six Sigma forces businesses to let go of bad habits. Bureaucracy becomes delayered. Those employees closest to the actual work and to the customer become motivated to meet or exceed consumer requirements. By questioning the speed with which products are produced and services are rendered, people begin to think about new systems that can be put into place to produce a higherquality product or service in a shorter amount of time. As those closest to the work discover more effective and profitable ways of working, they are able to inform senior management about what changes need to be made, and as a result, push those higher in the organization to reexamine the ways in which they do business. Six Sigma is about asking tougher and tougher questions until we receive quantifiable answers that change behavior. Through Six Sigma, companies relentlessly question every process, every number, every step along the way to creating a final product. Managers, employees, and customers ask different kinds of questions of each other than they've asked before. As Six Sigma takes hold across an organization, it creates an internal infrastructure that includes executives, managers, engineers, and operations and service personnel. When 50 percent or more of an organization's staff embrace Six Sigma, those individuals are able to mobilize massive changes in the way business is done, dramatically increasing profitability. Questions, of course, are not meant to exist in a vacuum. The methodology behind Six Sigma is designed to pave the way to find the right answers for your company. In the classic children's story "The Wizard of Oz", Dorothy's persistent questions about what she sees and where she is going lead her down the Yellow Brick Road and into the Land of Oz. Similarly, when an organization starts to question what it does and why it does it, it too can begin to lay a Yellow Brick Road that will lead to its own long-term goals. The fact is, organizations need ways of measuring what they claim to value. Measurements, or "metrics" as we prefer to call them, carry relevance to every member, for every activity, of an organization. You can't change what you can't measure. The foundation of Six Sigma uses metrics to calculate the success of everything an organization does. Enthusiastic speeches, colorful posters, and corporate mandates will not produce quantum change-only measuring the things a company values can do this. Without measuring a company's processes-and its changes to these processes-it's impossible to know where you are or where you are going. Six Sigma tells us: We don't know what we don't know. We can't do what we don't know. We won't know until we measure. We don't measure what we don't value. We don't value what we don't measure. So, in a general way, Six Sigma is a process of asking questions that lead to tangible, quantifiable answers that ultimately produce profitable results. This book will share what Six Sigma is, how it is applied, and what it can do for your company, business, or organization. It will be your guide for transforming knowledge into a living vision. To date, every company that has followed our Six Sigma methodology has achieved breakthrough profitability. Our intention in these pages is to pass on to you the knowledge that has taken us nearly two decades to learn. We wish you well in your journey toward breakthrough profitability. Implementing Six Sigma: Smarter Solutions Using Statistical Methods Forrest W. Breyfogle From The Publisher Implementing Six Sigma demystifies Six Sigma methods for today's users and offers invaluable guidance on how to choose and use Six Sigma tools effectively. Through the use of the Six Sigma implementation road map the book describes basic methods such as FMEA, QFD, process flowcharting, and continuous improvement tools (e.g., Pareto chart and cause-and-effect diagram) with a full range of powerful statistical techniques and concepts -- crucial knowledge for implementation practitioners and managers. The Smarter Six Sigma Solutions program guides the user through: Incorporating the organization's strategic vision into the aim of the Six Sigma project charter Planning for and kicking off the project by attaining executive sponsorship and selecting the proper project team "champions" Conducting executive, management, and team education and training Developing the proper organizational infrastructure along with committed management and employee participation Implementing the project charter using measurement, analysis, improvement, and control phases. Reviews From John Wiley & Sons Publishing - Booknews A business initiative first espoused by Motorola in the early 1990s, the Six Sigma strategy has become a standard statistical technique for quality improvement. Breyfogle, founder and president of a quality consulting firm, explains the implementation of Six Sigma. The text is divided into five sections centered on using his "Smarter Six Sigma Solutions" -- deployment, measurement, analysis, improvement, and control -- and includes examples that describe the mechanics of implementation as well as application possibilities. Annotation c. Book News, Inc., Portland, OR (booknews.com) "I have seen many Six Sigma approaches, but Breyfogle's Implementing Six Sigma is the most comprehensive of them all." --Frank Shines, Principal, IBM Global Services, Measurement Methods Consulting "The key to business success is doing the right thing faster and better and more efficiently than your competition. The Six Sigma approach aims at achieving this and Forrest Breyfogle has written the most systematic and comprehensive manual available on the subject." --Paul Tobias, Manager, Statistical Methods Group, SEMATECH "[This book] illustrates how most organizations can become more competitive, reduce defect levels, and improve cycle times. It consolidates not only the traditional Six Sigma process measurements and improvement tools, but also many other useful methodologies into one easy-to-understand text." --Bill Wiggenhorn, Senior Vice President of Motorola Training and Education; President, Motorola University FROM THE BOOK Table of Contents PART I S4 DEPLOYMENT STRATEGY PHASE 1 2 Six Stigma Overview and Implementation Knowledge-Centered Activity(KCA) Focus and Process Improvement PART II S4 MEASUREMENT PHASE 3 4 5 6 Overivew of Descriptive Statistics and Experimentation Traps Process Flowcharting/Process Mapping Basic Tools Probability 7 8 9 10 11 12 13 14 Overview of Distributions and Statistical Processes Probability and Hazard Plotting Six Sigma Measurements Basic Control Charts Process Capability and Process Performance Measurement Systems Analysis(Gauge Repeatability and Reproducibility-Gauge R&R) Cause-and-Effect Matrix and Quality Function Deployment Failure Mode and Effects Analysis(FMEA) PART III S4 ANALYSIS PHASE 15 16 17 18 19 20 21 22 23 24 25 26 Visualization of Data Confidence Intervals and Hypothesis Tests Inferences: Continuous Response Inferences: Attribute(Pass/Fail) Response Comparison Tests: Continuous Response Comparison Tests: Attribute(Pass/Fail) Response Bootstrapping Variance Components Correlation and Simple Linear Regression Single-Factor(One-Way) Analysis of Variance Two-Factor(Two-Way) Analysis of Variance Multiple Regression PART IV S4 IMPROVEMENT PHASE 27 28 29 30 31 32 33 Benefiting from Design of Experiments(DOE) Understanding the Creation of Full and Fractional Factorial 2k DOEs Planning 2k DOEs Design and Analysis of 2k DOEs Other DOE Considerations Variability Reduction Through DOE and Taguchi Considerations Response Surface Methodology PART V S4 CONTROL PHASE 34 35 36 37 38 39 40 41 42 43 Short-Run and Target Control Charts Other Control Charting Alternatives Exponentially Weighted Moving Average(EWMA) and Engineering Process Control(EPC) Pre-Control Charts Control Plan and Other Strategies Reliability Testing/Assessment: Overview Reliability Testing/Assessment: Repairable System Reliability Testing/Assessment: Nonrepairable Devices Pass/Fail Functional Testing Application Examples Appendix A Equations for the Distributions Appendix B Descriptive Information Appendix C DOE Supplement Appendix D Reference Tables ABOUT THE AUTHOR Affiliation FORREST W. BREYFOGLE III is founder and President of Smarter Solutions, a company specializing in training and consulting in Six Sigma methodologies. He is the author of Statistical Methods for Testing, Development, and Manufacturing (Wiley) and his articles have been published in Quality Engineering, Quality and Reliability Engineering International, and other publications. The Six SIGMA Way: How GE, Motorola, and Other Top Companies Are Honing Their Performance In-Stock: Ships 2-3 days. Peter S. Pande,Roland R. Cavanagh,Robert P. Neuman / Hardcover / McGraw-Hill Companies, The / May 2000 Our Price: $20.96, You Save 30% Annotation Six Sigma is a system for improving the quality of organizational processes. It was originally developed at Motorola in the 1980's and has become one of the most widely discussed and reported trends in business over the past two years, thanks largely to the phenomenal successes of the Six Sigma program at one of the world's most successful companies, GE. GE CEO Jack Welch, has been preaching about and implementing the Six Sigma philosophy throughout GE, and credits the program with millions of dollars in annual cost savings and product quality improvements. From The Publisher Six Sigma-the organizational quality system made famous by GE's legendary Jack Welch-has set new standards for process improvement. The Six Sigma Way is the first book to provide basic, non-technical information on understanding and implementing Six Sigma. Eye-opening success stories show how companies including GE, Motorola, Allied Signal, and others have used Six Sigma to produce millions in cost-savings and quality improvements. Written to give managers a basic overview of what Six Sigma is and how to implement it, The Six Sigma Way covers the application of Six Sigma across all industries. FROM THE BOOK Table of Contents TABLE OF CONTENTS _Toc468501689 PREFACE _Toc468501690 Six Sigma: Changing Business Habits _Toc468501691 So What Is Six Sigma? _Toc468501692 Is Six Sigma REALLY Different? _Toc468501693 Six Sigma. s Hidden Truths. and Potential Payoff _Toc468501694 Key Features of The Six Sigma Way _Toc468501695 A Word of Philosophy _Toc468501696 A Guide to the Six Sigma Way _Toc468501697 Acknowledgements _Toc468501720 PART One: An Executive Overview of Six Sigma _Toc468501721 Chapter 1: A Powerful Strategy for Sustained Success _Toc468501722 Six Sigma Success Stories _Toc468501723 GENERAL ELECTRIC _Toc468501724 MOTOROLA . and some Six Sigma history _Toc468501727 ALLIEDSIGNAL/HONEYWELL _Toc468501728 AEROJET CORP. _Toc468501729 The Six Sigma Wave _Toc468501730 The Benefits of Six Sigma _Toc468501731 The Tools & Themes of Six Sigma _Toc468501732 Six Themes of Six Sigma _Toc468501733 Chapter 2: Key Concepts of the Six Sigma System _Toc468501741 A Six Sigma Vision of Business Leadership _Toc468501742 Creating a Closed-Loop System _Toc468501743 An Introduction to Sigma Measurement (aka the Big Y) _Toc468501747 Six Sigma Improvement &Management Strategies _Toc468501753 Developing a Process Design/Redesign "Core Competency" _Toc468501756 Process Management: The Infrastructure for Six Sigma Leadership _Toc468501757 The DMAIC Six Sigma Improvement Model _Toc468501758 Defining the "Six Sigma Organization" _Toc468501760 Use & Value of the Six Sigma Name _Toc468501761 Chapter 3: Why is Six Sigma Succeeding Where Quality "Failed"? _Toc468501762 The Groundwork Laid by TQM Efforts _Toc468501763 Six Sigma and the Pitfalls of TQM _Toc468501770 Chapter 4: Applying Six Sigma to Service or Manufacturing _Toc468501771 Clarifying "Service" and "Manufacturing" _Toc468501772 The Changing Role of Manufacturing _Toc468501773 Service Process Opportunities. and Realities _Toc468501774 What Makes "Six Sigma Services" More Challenging? _Toc468501775 Making Six Sigma Work in Services _Toc468501776 Manufacturing Challenges _Toc468501783 Making Six Sigma Work for You _Toc468501787 Chapter 5: The Six Sigma Roadmap _Toc468501788 Advantages of the Six Sigma Roadmap _Toc468501789 The Roadmap, Step-by-Step _Toc468501790 STEP ONE: Identify Core Processes & Key Customers. _Toc468501791 STEP TWO: Define Customer Requirements. _Toc468501794 STEP THREE: Measure Current Performance. _Toc468501798 STEP FOUR: Prioritize, Analyze & Implement Improvements _Toc468501801 STEP FIVE: Expand & Integrate the Six Sigma System _Toc468501805 PART Two: Gearing Up & Adapting Six Sigma to Your Organization _Toc468501815 Chapter 6: Is Six Sigma Right for Us Now? _Toc468501816 Assessing Your Six Sigma Readiness _Toc468501817 When Six Sigma is NOT Right for an Organization _Toc468501824 Summarizing the Assessment: Three Key Questions _Toc468501825 Six Sigma from a Cost/Benefit Perspective _Toc468501826 Estimating Potential Benefits _Toc468501827 The Costs of Six Sigma Implementation _Toc468501828 Chapter 7: How and Where Should We Start our Efforts? _Toc468501831 Where to Start: Objective, Scope and Timeframe _Toc468501832 On-Ramps to the Six Sigma Roadmap _Toc468501836 The Roadmap and your Strengths and Weaknesses _Toc468501840 Piloting Your Six Sigma Effort _Toc468501841 Six Sigma Start-up Summary _Toc468501844 Chapter 8: The Politics of Six Sigma: Preparing Leaders to Launch & Guide the Effort _Toc468501845 Leading the Six Sigma Launch _Toc468501847 Chapter 9: Preparing Black Belts & Other Key Roles _Toc468501856 Roles for a Six Sigma Organization _Toc468501857 Options in Defining Roles & Structure _Toc468501865 Black Belts, Master Black Belts and Role Structures _Toc468501866 Black Belts & Master Black Belts _Toc468501867 Considerations for Defining the Black Belt Role _Toc468501868 Role Clarity Issues _Toc468501869 Selecting Project Team Members _Toc468501870 Being a Smart "Team Traveler" _Toc468501871 Key Questions for Choosing Team Members _Toc468501872 Chapter 10: Training the Organization for Six Sigma _Toc468501873 Essentials of Effective Six Sigma Training _Toc468501874 Planning a Six Sigma Curriculum _Toc468501875 A Model Six Sigma Curriculum _Toc468501876 Chapter 11: The Key to Successful Improvement: Selecting the Right Six Sigma Projects _Toc468501877 Project Selection Miscues _Toc468501878 Inadequate Executive/Leadership Training _Toc468501879 Launching Too Many Projects _Toc468501880 Inadequate "Scoping" of Projects _Toc468501881 Focusing on Internal, Efficiency-Based Projects _Toc468501882 Steps to Effective Project Selection _Toc468501883 Choosing Sources for Project Ideas _Toc468501884 Understanding What Will Qualify as a "Six Sigma" Improvement Project _Toc468501885 Project Selection Scenarios _Toc468501886 Defining Criteria for Project Selection _Toc468501887 Creating the Project Rationale _Toc468501888 Understanding & Selecting Projects "Dos and Don. ts" _Toc468501889 Choosing Your Six Sigma Improvement Model(s) _Toc468501890 Why. and Why Not. to Adopt "DMAIC" _Toc468501891 Potential Advantages of DMAIC _Toc468501892 PART Three: Building a Six Sigma Organization _Toc468501893 Chapter 12: Identifying Core Processes and Key Customers (Roadmap Step One) _Toc468501894 Introduction & Key Deliverables _Toc468501895 A. Identify "Core" Business Processes _Toc468501898 Concepts Behind the Core Process _Toc468501899 A Transitional Tool: the Relationship Map _Toc468501903 "Generic" Core & Support Process Descriptions _Toc468501904 Defining and Tailoring Your Core Processes _Toc468501907 B. Define Process Outputs & Key Customers _Toc468501910 C. Create High-Level Core Process Maps _Toc468501911 The "SIPOC" Process Model _Toc468501912 SIPOC and Completing the Core Processes _Toc468501914 Using the Core Process Maps _Toc468501917 Chapter 13: Defining Customer Requirements (Roadmap Step Two) _Toc468501919 Introduction and Key Deliverables _Toc468501921 A. Gather Customer Data & Develop "Voice of the Customer" Strategy _Toc468501923 Key Factors in Voice of the Customer Systems _Toc468501924 B. Develop Performance Standards and Requirements Statements _Toc468501932 Types of Requirements: Output and Service _Toc468501933 C. Analyzing & Prioritizing Requirements; Linking Requirements to Strategy _Toc468501940 Defining Requirements Dos & Don. ts _Toc468501941 Chapter 14: Measuring Current Performance (Roadmap Step Three) _Toc468501942 Introduction and Key Deliverables _Toc468501943 Understanding Business Process Measurement _Toc468501945 A. Plan & Measure Performance Against Customer Requirements _Toc468501955 Select What to Measure _Toc468501956 Develop Operational Definitions _Toc468501957 Prepare Collection & Sampling Plan _Toc468501960 Implement and Refine Measurement _Toc468501967 B. Develop Baseline Defect Measures & Identify Improvement Opportunities _Toc468501969 Output Performance Measures _Toc468501970 Total Process Performance Measures _Toc468501975 Including "Cost of Poor Quality" _Toc468501977 Using Baseline Measures _Toc468501978 Baseline Measurement Dos & Don. ts _Toc468501979 Chapter 15: Six Sigma Process Improvement (Roadmap Step Four-A) _Toc468501980 Introduction & Key Deliverables _Toc468501981 Tools: Handling with Care _Toc468501983 Overview of the Process Improvement Story _Toc468501985 The Back & Forth Nature of Process Improvement _Toc468501986 DEFINE: Clarifying the Problem, Goal & Process _Toc468501987 Six Sigma Project Charter _Toc468501988 Identifying & Listening to the Customer _Toc468501996 Identifying & Documenting the Process _Toc468501997 DEFINE "Dos and Don. ts" _Toc468501999 MEASURE: Baselining & Refining the Problem _Toc468502000 Measurement Choices _Toc468502001 MEASURE "Dos and Don. ts" _Toc468502003 ANALYZE: Becoming a Process Detective _Toc468502004 The Root Cause Analysis Cycle _Toc468502005 Starting Points on the Root Cause Cycle _Toc468502006 Process Mapping & Analysis _Toc468502009 Logical Cause Analysis _Toc468502010 Visual Tools for Data Analysis _Toc468502012 Completing the ANALYZE Phase _Toc468502017 ANALYZE "Dos and Don. ts" _Toc468502018 IMPROVE: Generating, Selecting and Implementing Solutions _Toc468502019 Idea Generation Objectives & Methods _Toc468502020 Synthesizing & Selecting Solutions _Toc468502022 Implementing Process Improvements _Toc468502024 Completing the IMPROVE Phase _Toc468502025 IMPROVE "Dos and Don. ts" _Toc468502026 Chapter 16: Six Sigma Process Design/Redesign (Roadmap Step Four-B) _Toc468502028 Introduction & Key Deliverables _Toc468502029 Critical Steps to Process Design/Redesign _Toc468502030 Benefits of "Design for Six Sigma" _Toc468502031 Getting Started on Process Design/Redesign _Toc468502036 DEFINE: Defining the Redesign Goal, Scope & Requirements _Toc468502041 The Design/Redesign Charter _Toc468502042 The Project/Process Scope _Toc468502043 Defining & Revising Process Outputs and Requirements _Toc468502046 Process Design/Redesign DEFINE Dos and Don. ts _Toc468502048 MEASURE: Establishing Performance Baselines _Toc468502049 Overview of MEASURE and Design/Redesign _Toc468502050 Process Design/Redesign MEASURE Dos and Don. ts _Toc468502052 ANALYZE: Building a Foundation for Redesign _Toc468502053 Process Design & ANALYZE _Toc468502054 Process Value Analysis _Toc468502055 Process Time Analysis _Toc468502058 Wrapping Up ANALYZE _Toc468502059 Process Design/Redesign ANALYZE Dos and Don. ts _Toc468502060 IMPROVE: Designing & Implementing the New Process _Toc468502061 Steps in the IMPROVE Phase _Toc468502062 Essentials Ingredients for Process Design _Toc468502063 Process Flow & Management Options _Toc468502064 Reviewing and Refining the Design _Toc468502065 Implementing the New Process _Toc468502067 Process Design/Redesign IMPROVE Dos and Don. ts _Toc468502070 Chapter 17: Expanding & Integrating the Six Sigma System (Roadmap Step Five) _Toc468502071 Introduction & Key Deliverables _Toc468502072 A. Implement Ongoing Measures & Actions to Sustain Improvement (Control) _Toc468502074 Build Solid Support for the Solution _Toc468502075 Document the Changes and New Methods _Toc468502076 Establish Meaningful Measures and Charts _Toc468502077 Building Process Response Plans _Toc468502080 Ongoing Measures & Controls "Dos & Don. ts" _Toc468502081 B. Define Responsibility for Process Ownership and Management _Toc468502082 Six Sigma and the Process Management Vision _Toc468502083 The Process Owner _Toc468502084 C. Execute "Closed-loop" Management & Drive to Six Sigma. _Toc468502088 Tools for Process Management _Toc468502089 Moving Towards Six Sigma _Toc468502093 Managing for Six Sigma Performance "Dos and Don. ts" _Toc468502094 Chapter 18: Advanced Six Sigma Tools: An Overview _Toc468502095 Statistical Process Control & Control Charts _Toc468502096 When and Why to use SPC/Control Charts? _Toc468502097 What does the "Control" in SPC/Controls Charts Mean? _Toc468502098 Control Charts and Customer Requirements _Toc468502102 Using Control Charts _Toc468502103 SPC & Control Chart "Dos and Don. ts" _Toc468502106 Tests of Statistical Significance (Chi-Square, t-test, ANOVA) _Toc468502107 Uses of Tests of Statistical Significance _Toc468502108 Basics of Statistical Analysis: the Null Hypothesis _Toc468502109 Testing for Statistical Significance: Methods and Examples _Toc468502110 Basic Steps in Statistical Tests _Toc468502111 Tests of Statistical Significance "Dos and Don. ts" _Toc468502112 Correlation and Regression Analysis _Toc468502113 Uses of Correlation and Regression Analysis _Toc468502114 Types of Correlation & Regression Analysis _Toc468502115 Correlation and Regression "Dos and Don. ts" _Toc468502116 Design of Experiments (DOE) _Toc468502117 Uses of Design of Experiments _Toc468502118 Basic Steps in Design of Experiments _Toc468502119 Design of Experiments "Dos and Don. ts" _Toc468502120 Failure Modes & Effects Analysis (FMEA) _Toc468502121 Uses of FMEA _Toc468502122 How FMEA Works _Toc468502123 FMEA "Dos & Don. ts" _Toc468502124 Mistake Proofing (or Poka-Yoke) _Toc468502125 Uses of Mistake-Proofing _Toc468502126 Basic Steps in Mistake-Proofing _Toc468502127 Mistake-Proofing "Dos and Don. ts" _Toc468502128 Quality Function Deployment (QFD) _Toc468502129 Uses of Quality Function Deployment _Toc468502130 Basics of Quality Function Deployment _Toc468502131 Quality Function Deployment "Dos & Don. ts" _Toc468502132 Chapter 19: Skills for Boundaryless Collaboration _Toc468502133 Essentials of Six Sigma Collaboration _Toc468502134 Essential Factors: Trust & Responsibility _Toc468502139 Conclusion: Twelve Keys to Success _Toc468502140 Keys to Success _Toc468502141 A Final Word _Toc468502142 Preface From the Preface Key Features of The Six Sigma Way This book is designed with maximum customer satisfaction in mind. We hope that by reading it thoroughly you'll have a complete picture of what's behind the Six Sigma movement, how it's paying off, and how you can implement the system to best fit your circumstances. At the same time, our goal is to provide a flexible resource and reference whether you've been engaged in Six Sigma for several years or are just starting to learn and apply it. Some of the features to help you get the most out of the book include: 1. A guide on where to find what you need. 2. Real help on doing Six Sigma. Whether it's fixing a process problem or implementing Six Sigma company-wide, we'll review important information to help you get started and keep moving. 3. Insights, comments and examples from real people -- business leaders, experts and managers -- who are using Six Sigma in their organizations. These thoughts have helped reinforce and refine our ideas; we're confident you'll learn a lot from them, too. 4. Checklists or templates for a number of the essential steps in Six Sigma improvement. We hope to prepare you to go out and do Six Sigma activities, so we've mapped out key steps to help ensure you make the right choices. 5. An orientation to advanced techniques. This is not a technical manual; plenty of other texts cover the nuances of process statistics and advanced experimental design. We will, however, help anyone understand what the "sophisticated" tools of Six Sigma are, why and how they're used and when they can or should be applied. 6. Our own perspectives and advice. Giving you a guide to best practices means we've had to synthesize different viewpoints, guided by our experience and understanding about what works best, when and how. Some of our thoughts challenge the views of Six Sigma "experts" -- where we do, we'll give evidence for our perspective. Because we've worked with some of the most visible Six Sigma companies and have applied these concepts in many types of businesses, we feel our views can make Six Sigma even more powerful than it might otherwise be.