The marriage between Lean Manufacturing and Six Sigma has proven to be a powerful tool for cutting waste and improving the organization’s operations. This third book in the Six Sigma Operations series picks up where other books on the subject leave off by providing the six sigma practioners with a statistical guide for solving problems they may encounter in implementing and managing a Lean Six Sigma programs. The book draws it examples from all sectors of business ranging from financial to manufacturing providing the reader with a wealth of case studies and as numerous worked out equations which are designed to facilitate the full potential of any Lean Six Sigma project.
Author(s): Apple Computer Inc
Edition: 1
Publisher: McGraw-Hill Professional
Year: 2005
Language: English
Pages: 354
Contents......Page 7
Preface......Page 11
Acknowledgments......Page 17
1.1 Moving from Manufacturing to Services......Page 21
1.2 This Book......Page 22
1.3 The Effect of Variation on the Customers and Shareholders......Page 23
1.5 Change and Corporate Culture......Page 26
2.1 Six Sigma—DMAIC......Page 29
2.2 The Toyota Production System......Page 30
2.3 Lean versus Six Sigma......Page 31
2.4 Lean Six Sigma......Page 32
2.5 The Product-Process Matrix......Page 36
2.6 An Evolution of Service Offerings......Page 40
3.1 Variation......Page 43
3.3 Stakeholders—Shareholders and Customers......Page 44
3.4 The Strategy of a Successful Company......Page 45
3.5 The Balanced Scorecard......Page 46
3.6 The Strategic Planning QFD......Page 50
3.7 Handling Different Business Units......Page 53
3.9 Reporting the Benefits—The Corporate Dashboard......Page 55
3.10 Incentives, Compensation, and Certification......Page 57
3.12 General Purpose Financial Statements......Page 58
3.13 Cash Flow Reporting......Page 60
3.15 Horizontal and Vertical Financial Reporting......Page 61
3.16 Ratio Analyses......Page 62
3.17 Financial Liquidity and Efficiency Analysis......Page 64
3.18 Profitability Analyses......Page 69
3.19 Financial Benefits "Buckets"......Page 72
3.20 The Recognize Checklist......Page 73
4.1 Variance to Customer Want (VTW)......Page 77
4.2 Defects—Six Sigma......Page 79
4.4 The Causes of Large Span......Page 83
4.5 Mortgage Processing Time—Win/Win......Page 86
4.6 Scoping the Business Process and Defining Team Roles......Page 87
4.7 Resistance......Page 89
4.8 Managing the Project Team—the GRPI Model......Page 92
4.9 The Define Checklist......Page 94
5.1 Level of Detail......Page 97
5.2 Process Mapping......Page 98
5.3 VA/NVA Process Mapping......Page 101
5.4 Value Stream Mapping......Page 102
5.5 Flow Rate, Cycle Time, and Inventory—Little's Law......Page 104
5.6 Process Yield......Page 106
5.7 Process Efficiency Mapping and the FMEA......Page 109
5.8 Process Indicators (Ys)......Page 113
5.9 Data Collection Plan......Page 114
5.10 Cycle Time, Execution Time, and Delay Time......Page 116
5.11 Data Types......Page 117
5.12 Probability Distributions......Page 122
5.13 Data Distributions from a Medical Clinic......Page 132
5.14 Process Capability for Cycle Time......Page 138
5.15 Hazard Plots for Cycle Time......Page 139
5.16 Summarizing Defect Levels with Customer Want Dates......Page 144
5.17 Hazard Plots with Customer Want Dates......Page 147
5.18 Validate Your Assumptions......Page 148
5.19 Gage R&R and the Data Audit......Page 149
5.20 Does Your Data Make Logical Sense?......Page 150
5.21 Capturing Rework......Page 151
5.22 Bad Dates......Page 152
5.23 Quantifying Overwritten Data......Page 157
5.24 The Measure Checklist......Page 158
6.1 Customer Demand and Business Capacity......Page 163
6.2 Accidental Adversaries at Company X......Page 167
6.3 Lessons from System Dynamics......Page 170
6.4 Analyzing the Entire Problem......Page 171
6.5 Establish Process Capability (P5-P95 Span)......Page 172
6.6 Examples of P5-P95 Span on VTW......Page 174
6.7 Elements of VTW-Customer Wants......Page 177
6.8 ANOVA for Arrival Rates......Page 180
6.9 GLM for Arrival Rates......Page 183
6.10 Customer Interarrival Times......Page 186
6.11 Transforming Weibull Data to Normality......Page 191
6.12 Control Charts Using Transformed Weibull Data......Page 192
6.14 Analyzing Production Capacity–Execution Time......Page 195
6.15 Testing for Subgroups of Execution Times......Page 197
6.17 Measuring Customer Patience......Page 201
6.18 Delay Time......Page 205
6.19 The Consequences of Changing Priorities......Page 210
6.20 Leveling Arrival Times and Execution Times......Page 212
6.21 Calculation of Transactional Process Efficiency......Page 214
6.22 Analysis of Transactional Process Efficiency......Page 217
6.23 Binary Logistic Regression......Page 218
6.24 The Analyze Checklist......Page 222
7.1 Different Types of Business Processes......Page 227
7.2 Different Types of Solutions......Page 229
7.3 Different Types of Customer Wants......Page 231
7.4 Stratification of Customer and Business Subgroups......Page 233
7.5 Lessons from Lean and ISO......Page 234
7.6 Kaizen Events......Page 235
7.7 Three Ms......Page 236
7.9 Heijunka—Minimize Mura and Muri......Page 238
7.10 Define the Queues......Page 239
7.11 FIFO and Scheduling......Page 240
7.12 Realistic Cycle Times......Page 241
7.13 Stratifying the Business......Page 242
7.15 Kanban in Transactional Processes......Page 247
7.16 Using DOE with the Model of the Process......Page 250
7.17 Choosing Between Different Improvement Strategies......Page 253
7.19 Prove the Improve......Page 255
7.20 The Improve Checklist......Page 256
8.1 Execution of the Improvement Strategy......Page 261
8.2 Change Management and Resistance......Page 262
8.3 Validate the Measurement System for Vital Xs......Page 263
8.4 Tolerancing......Page 264
8.5 Maintaining Your VTW Goal......Page 265
8.6 Keeping the Process in Control......Page 266
8.7 The Audit Plan for Project Close Out......Page 279
8.8 The Control Checklist......Page 281
9.2 Maintaining the Six Sigma Program......Page 285
9.3 Ongoing Financial Benefits......Page 287
9.4 Reporting and Tracking Projects......Page 289
9.5 Lean Six Sigma Corporate Dashboards......Page 291
9.6 BB Assessment and Certification......Page 292
9.7 Maintain a Body of Knowledge......Page 294
9.8 Communication Planning......Page 295
9.10 The Sustain Checklist......Page 298
Epilogue......Page 303
A.2 Monte Carlo Simulation......Page 305
A.3 Cycle Time for Insurance Policy Underwriting......Page 306
A.4 The Financial Impact of Process Risk—Medical Claim Payments......Page 317
A.5 Summary......Page 328
B.1 Assessing and Designing a Transactional System......Page 329
B.2 Mapping and Modeling a Process......Page 330
B.3 ProcessModel5......Page 332
C.1 Data Analysis......Page 339
B......Page 343
C......Page 344
D......Page 345
G......Page 346
K......Page 347
M......Page 348
P......Page 349
R......Page 350
S......Page 351
V......Page 352
Z......Page 353
