Leading Holistic Improvement with Lean Six Sigma 2.0 (2e) : 9780134288888

Leading Holistic Improvement with Lean Six Sigma 2.0 (2e)

Published by
Pearson Higher Ed USA
Available on demand
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A Holistic Approach to Performance Improvement That Reflects 30 Years of Six Sigma Learning

Leading Holistic Improvement with Lean Six Sigma 2.0 distills all that’s been learned about Six Sigma over the past three decades, helping you build and execute on modern holistic strategies to radically improve processes and performance. It’s the definitive modern guide to Lean Six Sigma for executives, champions, Black Belts, Green Belts, and every stakeholder concerned with performance improvement. In addition, it notes the limitations of Lean Six Sigma and explains how to broaden deployments to true holistic improvement, integrating multiple improvement methodologies.

Renowned experts Ronald Snee and Roger Hoerl help you launch or accelerate comprehensive “Lean Six Sigma 2.0” initiatives, integrating modern techniques to improve customer satisfaction, employee engagement, growth, and profitability across your organization. They introduce important recent advances in Lean Six Sigma theory and practice, and offer new case studies illuminating opportunities for holistic improvement. With an ideal mix of fundamental concepts and real-world case studies, the authors help you broaden your portfolio of improvement methodologies, integrating systems for process management, control, and risk management.

This revision incorporates decades of collective experience in improvement initiatives, the most relevant research on what does and doesn’t work, and contains three completely new chapters, as well as two previously unpublished holistic improvement case studies. This innovative approach is specifically designed to help you solve large, complex, and unstructured problems; and manage risk in a world of cyberattacks, terrorism, and fragmentation.

  • Plan and deploy a modern Lean Six Sigma strategy that fully reflects your organization
  • Learn and apply key lessons from the world’s best implementations
  • Integrate key success factors into a step-by-step process for improvement, and avoid common pitfalls that lead to failure
  • Master all facets of Lean Six Sigma leadership, including strategy, goal setting, metrics, training, roles/responsibilities, processes, reporting, rewards, and ongoing management review
  • Evolve your deployment to true holistic improvement that leverages modern methods and encompasses the entire organization
  • Make the most of big data analytics and other modern methods
  • Choose the optimal improvement method for each complex challenge you face
  • Use a focus on improvement as a leadership development tool
Table of contents
Preface xvi
Chapter 1 A New Paradigm Is Needed 1
The Expansion to Lean Six Sigma 2
Macro Societal Shifts Since 1987 3
Accelerated Globalization 3
Massive Immigration into North America and Europe 4
Growth of IT and Big Data Analytics 4
Recognition of Uniqueness of Large, Complex, Unstructured Problems 5
Modern Security Concerns 5
Current State of the Art 6
Versions 1.0 and 1.1 7
Version 1.2: Lean Six Sigma 7
Version 1.3: Lean Six Sigma and Innovation 8
The Limitations of Lean Six Sigma 1.3 9
Still Not Appropriate for All Problems 10
Does Not Incorporate Routine Problem Solving 11
Not a Complete Quality Management System 12
Inefficient at Handling Large, Complex, and Unstructured Problems 13
Does Not Take Advantage of Big Data Analytics 17
Does Not Address Modern Risk Management Issues 19
A New Paradigm Is Needed 21
References 22
Chapter 2 What Is Holistic Improvement? 25
The Ultimate Objective: Comprehensive Improvement 26
A Holistic View of Improving the Business 26
An Example of Holistic Improvement 29
A Strategic Structure for the Holistic Improvement System 30
Creating a Common Improvement System: The Case of Lean Six Sigma 32
An Integrated Project Management System 35
Summary and Looking Forward 39
References 40
Chapter 3 Key Methodologies in a Holistic Improvement System 41
Six Sigma: An Overall Framework and One Option for Improvement Projects 42
Quality by Design Approaches 45
Innovation and Creativity 45
Design for Six Sigma (DFSS) 46
Quality Function Deployment (QFD) 48
Theory of Inventive Problem Solving (TRIZ) 50
Additional Breakthrough Improvement Methods 51
Lean Enterprise 52
Statistical Engineering 54
Big Data Analytics 57
Work-Out Approach 59
Quality and Process Management Systems 61
ISO 9000 61
Malcolm Baldrige National Quality Award 63
Kepner–Tregoe Approach 65
Total Productive Maintenance (TPM) 67
The Internet of Things 68
Summary and Looking Forward 69
References 70
Chapter 4 Case Studies in Holistic Improvement 73
Case Study: Inside the GE Deployment 73
The Beginnings: Jack Never Bluffs! 74
No Second Guessing 75
The First Year: 1996 76
The Push for Tangible Benefits 78
DFSS and a Critical Mass of Green Belts 79
A Refocus on Customers 80
Application to Finance 81
Digitization and Six Sigma 82
At the Customer, for the Customer (ACFC) 82
An Expansion and Reinvigoration 83
Connection to Innovation and New Product Development 84
Lessons Learned 84
Case Study: The DuPont Story 85
Improvement at DuPont: 1950–1990s 85
Strategy of Experimentation 86
Product Quality Management 86
Other Approaches 88
Six Sigma Begins in 1998 88
Creating a Holistic System 90
DuPont Production System 91
DuPont Integrated Business Management 92
Product Commercialization Framework 93
Lessons Learned 93
Case Study: The Scott Paper Experience with Holistic Improvement 94
Process Control Initiative 96
Parallel Efforts 97
Early Efforts Toward Lean Design 98
Reorganization of the Quality Organization 100
Quality by Design 101
Early Attempts at Integration 103
Lessons Learned 104
Summary and Looking Forward 106
References 107
Chapter 5 How to Successfully Implement Lean Six Sigma 2.0 109
Why Are Organizations Successful in Implementing Lean Six Sigma? 109
Some Common Misconceptions 110
Success Starts at the Top 111
Lean Six Sigma Requires Top Talent 112
An Infrastructure to Support the Effort 112
Why Were Others Less Successful? 114
How Committed Was Senior Leadership? 115
Who Was Selected for Key Lean Six Sigma Roles? 115
A Lack of Supporting Infrastructure 116
The Keys to Successful Lean Six Sigma Deployment 117
Committed Leadership 118
Top Talent 120
Supporting Infrastructure 122
Improvement Methodology Portfolio 124
High-Level Roadmap for Lean Six Sigma 2.0 Deployment 125
Launching the Initiative 127
Managing the Effort 129
Sustaining Momentum and Growing 129
The Way We Work 131
Summary and Looking Forward 135
References 135
Chapter 6 Launching the Initiative 137
Full or Partial Deployment? 138
Developing the Deployment Plan 140
Deployment Plan Elements 144
Strategy and Goals 145
Process Performance Measures 146
Project Selection Criteria 147
Project Identification and Prioritization System 148
Deployment Processes for Leaders 149
Roles of Management and Others 149
Curricula and Training System 150
Project and Initiative Review Schedule 150
Project Reporting and Tracking System 150
Audit System for Previously Closed Projects 151
Reward and Recognition Plan 152
Communications Plan 152
Selecting the Right Projects 153
Six Sigma and Lean Projects 154
Selecting Good Lean Six Sigma Projects 158
The Concept of Process Entitlement 161
Developing the Project Charter 164
Selecting the Right People 167
The Leadership Team 169
Champion 169
Black Belt 170
Green Belt 171
Master Black Belt 172
Functional Support Groups 173
Forming Teams 173
Where Do I Find the Resources? 174
What Training Do I Need? 176
Sample Black Belt Course for Finance 177
Sample Black Belt Course for Manufacturing 179
Sample Green Belt Course for Manufacturing 181
Selecting a Lean Six Sigma Provider 183
Summary and Looking Forward 184
References 185
Chapter 7 Managing the Effort 187
Managerial Systems and Processes 191
Management Project Reviews 193
Project Reporting and Tracking 197
Communications Plan 200
Reward and Recognition Plan 205
Project Identification and Prioritization 208
Project Closure: Moving On to the Next Project 211
Lean Six Sigma Budgeting 213
Deployment Processes for Leaders 213
Integrating Lean Six Sigma with Current Management Systems 215
Summary and Looking Forward 216
References 217
Chapter 8 Sustaining Momentum and Growing 219
Playing Defense: Sustaining Momentum 220
Holding Project Gains 221
Quarterly and Annual Reviews 223
The Training System 226
Leadership Green Belt Training 229
Lean Six Sigma Organizational Structure 231
Six Sigma Leaders Must Work Together As a Team 233
The “Lean Six Sigma Sweep” 234
Playing Offense: Growing the Effort 237
Expanding Lean Six Sigma Throughout the Organization 237
Using Six Sigma to Improve Supplier Performance 242
Expanding the Improvement Portfolio 244
Which Methodologies to Add? 245
Implications for Infrastructure 248
Selecting the Most Appropriate Methodology 249
Growing the Top Line 251
Summary and Looking Forward 256
References 257
Chapter 9 The Way We Work 261
Creating a Holistic Improvement System 262
The Improvement Project Portfolio 264
The Improvement Organization 267
Integration of Quality and Process Management Systems 269
Synergies with ISO 9000 270
Synergies with the Malcolm Baldrige National Quality Award 272
Synergies with Risk Management 274
Don’t Forget About Process Control 276
Don’t Forget About Managerial Processes 280
Motorola Financial Audit Case 283
The Long-Term Impact of Holistic Improvement 284
Holistic Improvement Drives Culture Change 287
Improvement As a Leadership Development Tool 289
Summary and Looking Forward 290
References 291
Chapter 10 Final Thoughts for Leaders 293
Understanding the Role of the Methods and Tools: A Case Study 294
Define Phase 295
Measure Phase 296
Analyze Phase 301
Improve Phase 302
Control Phase 304
Results 305
How to Think About the Methods and Tools 306
Tools Themselves Don’t Make Improvements 308
Tools Must Be Properly Sequenced 309
Leadership Is Still Required 311
Incorporate Subject Matter Knowledge 311
Summary and Looking Forward 313
References 314
Appendix A Ensuring Project and Initiative Success 315
Appendix B Glossary 327
Appendix C Acronyms 333
Index 335