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Treasure Chest of Six Sigma Growth Methods, Tools, and Best Practices [NOOK Book]

Overview

This reference is the first comprehensive how-to collection of Six Sigma tools, methodologies, and best practices. Leading implementer Lynne Hambleton covers the entire Six Sigma toolset, including more than 70 different tools–ranging from rigorous statistical and quantitative tools, to “softer” techniques. The toolset is organized in an easy-to-use, alphabetical encyclopedia and helps professionals quickly select the right tool, at the right time for every business challenge.

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Treasure Chest of Six Sigma Growth Methods, Tools, and Best Practices

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Overview

This reference is the first comprehensive how-to collection of Six Sigma tools, methodologies, and best practices. Leading implementer Lynne Hambleton covers the entire Six Sigma toolset, including more than 70 different tools–ranging from rigorous statistical and quantitative tools, to “softer” techniques. The toolset is organized in an easy-to-use, alphabetical encyclopedia and helps professionals quickly select the right tool, at the right time for every business challenge.

Hambleton systematically discusses which questions each tool is designed to answer; how the tool compares with similar tools; when to use it; how to use it step-by-step; how to analyze and apply the output; and which other tool to use with it. To further illustrate and clarify tool usage, she presents hundreds of figures, along with never-before-published hints, tips, and real-world, “out-of-the-box” examples.

Coverage includes

· Real-world guidance to help practitioners raise the most important questions and determine the best resolution

· Statistical techniques, including ANOVA, multi-vari charts, Monte Carlo simulations, normal probability plots, and regression analysis

· Benchmarks, capability and cost/benefit analyses, Porter’s Five Forces, scorecards, stakeholder analysis, and brainstorming techniques

· CPM, CTQ, FMEA, HOQ, and GOSPA

· GANTT, PERT chart, and other Six Sigma project management tools

· 7QC: cause and effect diagrams, checklists, control charts, fishbone diagram, flowchart, histogram, Pareto chart, process maps, run chart, scatter diagram, and the stratification tool

· 7M: AND, affinity diagrams, interrelationship diagrams, matrix diagrams, prioritization matrices, PDPC, and tree diagrams

· Crystal Ball, Minitab, and Quality Companion 2 software to facilitate the use of statistical and analytical tools and more to help you become a more effective Six Sigma practitioner

· This book is also available in a highly-searchable eBook format at prenhallprofessional.com/title/0136007376 and other online booksellers,.

From start to finish, this bookdelivers fast, thorough and reliable answers–knowledge you’ll rely on in every Six Sigma project, for years to come.

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Product Details

  • ISBN-13: 9780132797290
  • Publisher: Pearson Education
  • Publication date: 7/20/2007
  • Sold by: Barnes & Noble
  • Format: eBook
  • Edition number: 1
  • Pages: 864
  • File size: 21 MB
  • Note: This product may take a few minutes to download.

Meet the Author

Lynne Hambleton is a business consultant with special focus on strategy

development and execution and change management to improve operational

processes and expand commercial opportunities. She has held several

management positions in Xerox Corporation where she worked for

almost 25 years. She also has worked in education, healthcare, and energy

public sectors and start-ups. Hambleton’s experience spans general management,

marketing, field operations, strategic planning, alliance development,

and sales/channel management. She also has served as an

adjunct professor of strategic planning at Rochester Institute of Technology’s

School of Business.

Ms. Hambleton received a Master’s degree in Business Administration,

with an emphasis in industrial marketing; a Master’s degree in Adult &

Higher Education/Organizational Development; and a Bachelor of Science

degree in psychophysiology, all from University of North Carolina–

Chapel Hill. Ms. Hambleton is also an active PMI-certified Project

Management Professional (PMP) (1998); a Master Black Belt; and Certified

Six Sigma Black Belt (CSSBB) from Villanova University (2006).

Hambleton’s additional publications include Six Sigma for Marketing

Processes, An Overview for Marketing Executives, Leaders, and Managers (coauthors

C.M. Creveling and B. McCarthy), Prentice Hall, 2006; the chapter

titled, “Supporting a Metamorphosis through Communities of

Practice,” in Leading Knowledge Management and Learning, by Dede Bonner,

2000; and the article, “How Does a Company the Size of Xerox Design a

Curriculum in Project Management for the Entire Organization?” printed

in In Search of Excellence in Project Management, Volume 2, by Harold

Kerzner, 1999. Ms. Hambleton lives in Rochester, New York, and can be

reached best via email at lynne@mageemanagement.com or visiting

mageemanagement.com.

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Read an Excerpt

PrefacePreface

The Treasure Chest is part of Prentice-Hall’s Six Sigma for Innovation and Growth Series. This book serves as a consolidated “how to” reference book of Lean Six Sigma, covers growth and innovation tools, provides an overview of methods and the tools to which they align, and offers an overview of additional best practices used to manage a successful Six Sigma growth initiative. The Treasure Chest of Six Sigma Growth Methods, Tools, and Best Practices guides you in selecting the right tool to answer the right question at the right time. The right question drives the requirement or need to be addressed—regardless whether the requirement comes from your customer or a business need. Understanding the overall objective, or requirement, helps determine which Six Sigma methodology to use. The right time dictates what else you know given where you are in your approach. Understanding whether you are in the planning, designing, implementing, or maintaining phases of an overall process determines which process step, thereby the context of the question being asked. Finally, the right tool should be the last question asked, as it is based on first knowing what is required and at what point you are in the process.

The Treasure Chest is a desk-reference book for people interested in growth, operations excellence, and business-process improvement. This book speaks to the general business practitioner, business analyst, manager, and leader, regardless of the business context. It is for profit or nonprofit enterprises; large or small firms; whether in headquarters-function, plant, or field location, regardless of functional discipline.

The book covers a range of applications from strategic planning aspects of business (offering portfolio renewal) to presenting development and launch preparation, from post-launch operations management to offering discontinuance. Whether contributing a new design (product and/or service), proposing a new process, evaluating a portfolio of offerings, or managing a current portfolio of offerings, this book compiles the resources that help drive growth proactively and presents them in a quick-reference format for easy navigation. This book takes the hassle out of researching the methodology and tools so you can immediately begin to find solutions for your discipline.

The Treasure Chest speaks primarily to business people who need practical “hands-on” guidance and answers to the following questions:

  1. How do you select the appropriate tool based on the business need (or question being asked) and the required deliverables?
  2. How do you use the tool, what inputs or data are required, and what comprises a step-by-step procedure for each tool or technique?
  3. How do you analyze the tool’s output and decide on the next course of action?

This book was specifically written for general business disciplines, such as marketing, strategic planning, pricing, finance, customer administration, sales, services, support, maintenance, and parts and supplies distribution. This book also is targeted to the technical engineering and research community searching for candidate tools that support communication, project management, risk mitigation planning, and change management requirements.

Common Language

Communication presents a challenge when a collaborative team speaks a different language, different filter, different perspective, different interpretation. Successful innovation and growth rely on the integration and collaboration of multiple disciplines, often represented in a cross-functional team. Such teams may be comprised of internal, functionally distinct professionals or any combination of external partners, clients, and sometimes even competition. Regardless if the goal requires creating something from scratch or fine-tuning the management of current offerings, the combination of multiple disciplines, capabilities, and perspectives greatly enhance the end results of this work. However, this collaborative work requires a common language to understand and integrate the diversity.

The methods and tools presented in this book assist with interpretation of different perspectives and provide a common platform, foundation, and language from which multiple views can work in harmony. Interestingly, each discipline has its own unique language, different thought-processes, and/or different tools that characterizes its work. Sometimes, perhaps with minor adaptations, a tool considered commonplace by one discipline can be viewed as an “a-ha” eureka discovery to a second group when properly applied. Tools commonly used by marketing groups can excite a technical team if introduced at the appropriate time. For example, a communication summary tool or prioritization tool may be overlooked because it is a “soft tool,” but it actually can fit perfectly when communicating “big picture” thinking. Similarly, if the time is right, marketing teams enjoy the rigor of techniques from the technical counterparts to provide a fresh perspective.

Treasure Chest embraces tools used by both the technical and non-technical communities and describes when and how to use them. It contains the business tools and methods for innovation and growth to facilitate best practices sharing and a “common language” across multi-disciplined teams. It also integrates some key technical tools appropriate for general business use (or understanding).

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Table of Contents

Preface .......................................................................................................xv

Introduction Different Methods for Different Purposes..................1

Part I Six Sigma Methodology Overview: Choosing the Right

Approach to Address the Requirements

Section 1 Define-Measure-Analyze-Improve-Control (DMAIC)....13

Section 2 Lean and Lean Six Sigma ....................................................29

Section 3 Design for Six Sigma (DFSS)...............................................45

Section 4 Six Sigma for Marketing (SSFM) ........................................67

Part II Six Sigma Tools and Techniques: Choosing the Right

Tool to Answer the Right Question at the Right Time

The Six Sigma Encyclopedia of Business Tools and Techniques .....115

Summary Tool Matrix............................................................................115

A Activity Network Diagram (AND) - 7M Tool . . . . . . . . . . . . . 127

Affinity Diagram - 7M Tool..........................................................136

Analysis of Variance (ANOVA)...................................................142

Arrow Diagram..............................................................................159

B Benchmarking................................................................................160

Box Plots–Graphical Tool ...........................................................165

Brainstorming Technique .............................................................168

C Capability Analysis .......................................................................173

Cause-and-Effect Diagram - 7QC Tool .......................................173

Cause-and-Effect Prioritization Matrix ......................................188

Cause and Prevention Diagram ..................................................198

Checklists - 7QC Tool....................................................................204

Conjoint Analysis ..........................................................................207

Control Charts - 7QC Tool............................................................217

Cost/Benefit Analysis...................................................................238

Critical Path Method (CPM) ........................................................242

Critical-to-Quality (CTQ) .............................................................242

D Data Collection Matrix..................................................................248

Design of Experiment (DOE).......................................................250

Dotplot ............................................................................................280

F Failure Modes and Effects Analysis (FMEA).............................287

5-Whys ............................................................................................305

Fault Tree Analysis (FTA).............................................................309

Fishbone Diagram - 7QC Tool .....................................................316

Flowchart - 7QC Tool ....................................................................316

G Gantt Chart.....................................................................................317

GOSPA (Goals, Objectives, Strategies, Plans and Actions)......320

Graphical Methods........................................................................323

H Histogram - 7QC Tool...................................................................330

House of Quality (HOQ) ..............................................................335

Hypothesis Testing........................................................................335

I Interrelationship Diagram - 7M Tool..........................................369

K KJ Analysis .....................................................................................375

M Market Perceived Quality Profile (MPQP) ................................390

Matrix Diagrams - 7M Tool..........................................................399

Measurement System Analysis (MSA).......................................412

Monte Carlo Simulation ...............................................................431

Multi-vari Chart.............................................................................439

N Normal Probability Plot ...............................................................444

P Pareto Chart - 7QC Tool................................................................445

PERT (Program Evaluation and Review Technique) Chart ....453

Poka-Yoke .......................................................................................462

Porter’s 5 Forces ............................................................................464

Prioritization Matrices - 7M Tool ................................................470

Process Capability Analysis.........................................................486

Process Decision Program Charts (PDPC) - 7M Tool ...............515

Process Map (or Flowchart) - 7QC Tool .....................................522

Pugh Concept Evaluation and Selection....................................534

Q Quality Function Deployment (QFD).........................................543

Treasure Chest of Six Sigma Growth Methods, Tools vi ols & Best Practices

00 0132300214_fm.qxd 6/27/07 12:10 PM Page vi

R RACI Matrix (Responsible, Accountable, Consulted,

Informed)........................................................................................554

Real-Win-Worth (RWW) Analysis...............................................560

Regression Analysis ......................................................................571

Risk Mitigation Plan......................................................................601

Rolled Throughput Yield..............................................................610

Run Chart - 7QC Tool....................................................................611

S 7M - Seven Management Tool .....................................................615

7QC - Seven Quality Control Tool...............................................616

Sampling.........................................................................................618

Scatter Diagram - 7QC Tool .........................................................640

Scorecards.......................................................................................653

SIPOC (Supplier-Input-Process-Output-Customer).................663

SMART Problem & Goal Statements for a Project Charter .....665

Solution Selection Matrix .............................................................672

Stakeholder Analysis ....................................................................681

Statistical Tools...............................................................................684

Stratification - 7QC Tool ...............................................................697

SWOT (Strengths-Weaknesses-Opportunities-Threats)...........699

T Tree Diagram - 7M Tool ................................................................712

TRIZ.................................................................................................715

V Value Stream Analysis ..................................................................727

Voice of Customer Gathering Techniques..................................737

W Work Breakdown Structure (WBS) .............................................753

Y Y = f (X) ...........................................................................................758

Part III Best Practices Articles

The Anatomy of Quality Loss in a Product ...............................PDF:763

The Anatomy of Variations in Product Performance ...............PDF:777

Benchmarking–Avoid Arrogance and Lethargy.....................PDF:789

Building Strength via Communities of Practice and Project

Management...................................................................................PDF:799

Complex Organizational Change Through Discovery-based

Learning .........................................................................................PDF:827

Lean Six Sigma for Fast Track Commercialization

High Risk-High Reward, Rapid Commercialization:

PROCEED WITH CAUTION! .....................................................PDF:835

Listening to the Customer First-Hand; Engineers Too ............PDF:851

The Practice of Designing Relationships....................................PDF:873

A Process for Product Development...........................................PDF:887

Selecting Project Portfolios using Monte Carlo Simulation and

Optimization ..................................................................................PDF:921

Part IV Appendixes

Appendix A Statistical Distribution Tables...................................939

Appendix B Glossary.......................................................................951

Appendix C References ...................................................................979

Index ........................................................................................................981

Read More Show Less

Preface

Preface

The Treasure Chest is part of Prentice-Hall’s Six Sigma for Innovation and Growth Series. This book serves as a consolidated “how to” reference book of Lean Six Sigma, covers growth and innovation tools, provides an overview of methods and the tools to which they align, and offers an overview of additional best practices used to manage a successful Six Sigma growth initiative. The Treasure Chest of Six Sigma Growth Methods, Tools, and Best Practices guides you in selecting the right tool to answer the right question at the right time. The right question drives the requirement or need to be addressed—regardless whether the requirement comes from your customer or a business need. Understanding the overall objective, or requirement, helps determine which Six Sigma methodology to use. The right time dictates what else you know given where you are in your approach. Understanding whether you are in the planning, designing, implementing, or maintaining phases of an overall process determines which process step, thereby the context of the question being asked. Finally, the right tool should be the last question asked, as it is based on first knowing what is required and at what point you are in the process.

The Treasure Chest is a desk-reference book for people interested in growth, operations excellence, and business-process improvement. This book speaks to the general business practitioner, business analyst, manager, and leader, regardless of the business context. It is for profit or nonprofit enterprises; large or small firms; whether in headquarters-function, plant, or field location, regardless of functional discipline.

The book covers a range of applications from strategic planning aspects of business (offering portfolio renewal) to presenting development and launch preparation, from post-launch operations management to offering discontinuance. Whether contributing a new design (product and/or service), proposing a new process, evaluating a portfolio of offerings, or managing a current portfolio of offerings, this book compiles the resources that help drive growth proactively and presents them in a quick-reference format for easy navigation. This book takes the hassle out of researching the methodology and tools so you can immediately begin to find solutions for your discipline.

The Treasure Chest speaks primarily to business people who need practical “hands-on” guidance and answers to the following questions:

  1. How do you select the appropriate tool based on the business need (or question being asked) and the required deliverables?
  2. How do you use the tool, what inputs or data are required, and what comprises a step-by-step procedure for each tool or technique?
  3. How do you analyze the tool’s output and decide on the next course of action?

This book was specifically written for general business disciplines, such as marketing, strategic planning, pricing, finance, customer administration, sales, services, support, maintenance, and parts and supplies distribution. This book also is targeted to the technical engineering and research community searching for candidate tools that support communication, project management, risk mitigation planning, and change management requirements.

Common Language

Communication presents a challenge when a collaborative team speaks a different language, different filter, different perspective, different interpretation. Successful innovation and growth rely on the integration and collaboration of multiple disciplines, often represented in a cross-functional team. Such teams may be comprised of internal, functionally distinct professionals or any combination of external partners, clients, and sometimes even competition. Regardless if the goal requires creating something from scratch or fine-tuning the management of current offerings, the combination of multiple disciplines, capabilities, and perspectives greatly enhance the end results of this work. However, this collaborative work requires a common language to understand and integrate the diversity.

The methods and tools presented in this book assist with interpretation of different perspectives and provide a common platform, foundation, and language from which multiple views can work in harmony. Interestingly, each discipline has its own unique language, different thought-processes, and/or different tools that characterizes its work. Sometimes, perhaps with minor adaptations, a tool considered commonplace by one discipline can be viewed as an “a-ha” eureka discovery to a second group when properly applied. Tools commonly used by marketing groups can excite a technical team if introduced at the appropriate time. For example, a communication summary tool or prioritization tool may be overlooked because it is a “soft tool,” but it actually can fit perfectly when communicating “big picture” thinking. Similarly, if the time is right, marketing teams enjoy the rigor of techniques from the technical counterparts to provide a fresh perspective.

Treasure Chest embraces tools used by both the technical and non-technical communities and describes when and how to use them. It contains the business tools and methods for innovation and growth to facilitate best practices sharing and a “common language” across multi-disciplined teams. It also integrates some key technical tools appropriate for general business use (or understanding).

Read More Show Less

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