Six SIGMA: The Breakthrough Management Strategy Revolutionizing the World's Top Corporations
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Mikel J. Harry,Richard Schroeder / Hardcover / Doubleday & Company, Incorporated / December 1999
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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 higher-quality 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 S^4 DEPLOYMENT STRATEGY PHASE
1	Six Stigma Overview and Implementation
2	Knowledge-Centered Activity(KCA) Focus and Process Improvement
PART II S^4MEASUREMENT PHASE
3	Overivew of Descriptive Statistics and Experimentation Traps
4	Process Flowcharting/Process Mapping
5	Basic Tools
6	Probability
7	Overview of Distributions and Statistical Processes
8	Probability and Hazard Plotting
9	Six Sigma Measurements
10	Basic Control Charts
11	Process Capability and Process Performance
12	Measurement Systems Analysis(Gauge Repeatability and Reproducibility-Gauge R&R)
13	Cause-and-Effect Matrix and Quality Function Deployment
14	Failure Mode and Effects Analysis(FMEA)
PART III S^4ANALYSIS PHASE
15	Visualization of Data
16	Confidence Intervals and Hypothesis Tests
17	Inferences: Continuous Response
18	Inferences: Attribute(Pass/Fail) Response
19	Comparison Tests: Continuous Response
20	Comparison Tests: Attribute(Pass/Fail) Response
21	Bootstrapping
22	Variance Components
23	Correlation and Simple Linear Regression
24	Single-Factor(One-Way) Analysis of Variance
25	Two-Factor(Two-Way) Analysis of Variance
26	Multiple Regression
PART IV S^4IMPROVEMENT PHASE
27	Benefiting from Design of Experiments(DOE)
28	Understanding the Creation of Full and Fractional Factorial 2^k DOEs
29	Planning 2^k DOEs
30	Design and Analysis of 2^k DOEs
31	Other DOE Considerations
32	Variability Reduction Through DOE and Taguchi Considerations
33	Response Surface Methodology
PART V S^4CONTROL PHASE
34	Short-Run and Target Control Charts
35	Other Control Charting Alternatives
36	Exponentially Weighted Moving Average(EWMA) and Engineering Process Control(EPC)
37	Pre-Control Charts
38	Control Plan and Other Strategies
39	Reliability Testing/Assessment: Overview
40	Reliability Testing/Assessment: Repairable System
41	Reliability Testing/Assessment: Nonrepairable Devices
42	Pass/Fail Functional Testing
43	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
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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.

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