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Leading Holistic Improvement with Lean Six Sigma 2.0, Second Edition

Book Description

We live in a very different world from 1987 when Six Sigma was first introduced by Motorola, and from the early 2000s when the first books on Six Sigma and Lean Six Sigma deployment appeared. How should one think about continuous improvement in a modern world? Is Lean Six Sigma the best approach to take for all problems, including large, complex, unstructured problems, such as climate change or the Millennial Development Goals? The authors argue that a different paradigm is needed to take continuous improvement to a new level in the world in which we now find ourselves. Snee and Hoerl refer to this paradigm as Holistic Improvement, and suggest Lean Six Sigma 2.0, the next version of Lean Six Sigma, as the best methodology based on this paradigm. Holistic improvement incorporates a diverse array of improvement methods, beyond Lean and Six Sigma, to ensure that organizations can apply the most relevant improvement method to a specific problem.

Leading Holistic Improvement with Lean Six Sigma 2.0 is the only book on the market that addresses the developments that have occurred in the last 15 years, and also provides a way to address these developments. These developments include the rapid growth of globalization, the recognition of the importance of large, complex, unstructured problems, the rise of Data Science as a discipline, and the growing importance of risk management in a world beset by terrorism and computer hacking of confidential information. This book includes learnings from Snee and Hoerl’s extensive use of Lean Six Sigma in improving process and organizational performance, and also their research on the topics that include two previous books and more than twenty published articles on the subject.

Table of Contents

  1. Cover Page
  2. Title Page
  3. Copyright Page
  4. Dedication
  5. Contents at a Glance
  6. Contents
  7. About This E-Book
  8. Acknowledgments
  9. About the Authors
  10. Preface
  11. Chapter 1 A New Paradigm Is Needed
    1. The Expansion to Lean Six Sigma
    2. Macro Societal Shifts Since 1987
      1. Accelerated Globalization
      2. Massive Immigration into North America and Europe
      3. Growth of IT and Big Data Analytics
      4. Recognition of Uniqueness of Large, Complex, Unstructured Problems
      5. Modern Security Concerns
    3. Current State of the Art
      1. Versions 1.0 and 1.1
      2. Version 1.2: Lean Six Sigma
      3. Version 1.3: Lean Six Sigma and Innovation
    4. The Limitations of Lean Six Sigma 1.3
      1. Still Not Appropriate for All Problems
      2. Does Not Incorporate Routine Problem Solving
      3. Not a Complete Quality Management System
      4. Inefficient at Handling Large, Complex, and Unstructured Problems
      5. Does Not Take Advantage of Big Data Analytics
      6. Does Not Address Modern Risk Management Issues
    5. A New Paradigm Is Needed
    6. References
  12. Chapter 2 What Is Holistic Improvement?
    1. The Ultimate Objective: Comprehensive Improvement
      1. A Holistic View of Improving the Business
      2. An Example of Holistic Improvement
      3. A Strategic Structure for the Holistic Improvement System
    2. Creating a Common Improvement System: The Case of Lean Six Sigma
      1. An Integrated Project Management System
    3. Summary and Looking Forward
    4. References
  13. Chapter 3 Key Methodologies in a Holistic Improvement System
    1. Six Sigma: An Overall Framework and One Option for Improvement Projects
    2. Quality by Design Approaches
      1. Innovation and Creativity
      2. Design for Six Sigma (DFSS)
      3. Quality Function Deployment (QFD)
      4. Theory of Inventive Problem Solving (TRIZ)
    3. Additional Breakthrough Improvement Methods
      1. Lean Enterprise
      2. Statistical Engineering
      3. Big Data Analytics
      4. Work-Out Approach
    4. Quality and Process Management Systems
      1. ISO 9000
      2. Malcolm Baldrige National Quality Award
      3. Kepner—Tregoe Approach
      4. Total Productive Maintenance (TPM)
      5. The Internet of Things
    5. Summary and Looking Forward
    6. References
  14. Chapter 4 Case Studies in Holistic Improvement
    1. Case Study: Inside the GE Deployment
      1. The Beginnings: Jack Never Bluffs!
      2. No Second Guessing
      3. The First Year: 1996
      4. The Push for Tangible Benefits
      5. DFSS and a Critical Mass of Green Belts
      6. A Refocus on Customers
      7. Application to Finance
      8. Digitization and Six Sigma
      9. At the Customer, for the Customer (ACFC)
      10. An Expansion and Reinvigoration
      11. Connection to Innovation and New Product Development
      12. Lessons Learned
    2. Case Study: The DuPont Story
      1. Improvement at DuPont: 1950–1990s
      2. Strategy of Experimentation
      3. Product Quality Management
      4. Other Approaches
      5. Six Sigma Begins in 1998
      6. Creating a Holistic System
      7. DuPont Production System
      8. DuPont Integrated Business Management
      9. Product Commercialization Framework
      10. Lessons Learned
    3. Case Study: The Scott Paper Experience with Holistic Improvement
      1. Process Control Initiative
      2. Parallel Efforts
      3. Early Efforts Toward Lean Design
      4. Reorganization of the Quality Organization
      5. Quality by Design
      6. Early Attempts at Integration
      7. Lessons Learned
    4. Summary and Looking Forward
    5. References
  15. Chapter 5 How to Successfully Implement Lean Six Sigma 2.0
    1. Why Are Organizations Successful in Implementing Lean Six Sigma?
      1. Some Common Misconceptions
      2. Success Starts at the Top
      3. Lean Six Sigma Requires Top Talent
      4. An Infrastructure to Support the Effort
    2. Why Were Others Less Successful?
      1. How Committed Was Senior Leadership?
      2. Who Was Selected for Key Lean Six Sigma Roles?
      3. A Lack of Supporting Infrastructure
    3. The Keys to Successful Lean Six Sigma Deployment
      1. Committed Leadership
      2. Top Talent
      3. Supporting Infrastructure
      4. Improvement Methodology Portfolio
    4. High-Level Roadmap for Lean Six Sigma 2.0 Deployment
      1. Launching the Initiative
      2. Managing the Effort
      3. Sustaining Momentum and Growing
      4. The Way We Work
    5. Summary and Looking Forward
    6. References
  16. Chapter 6 Launching the Initiative
    1. Full or Partial Deployment?
    2. Developing the Deployment Plan
    3. Deployment Plan Elements
      1. Strategy and Goals
      2. Process Performance Measures
      3. Project Selection Criteria
      4. Project Identification and Prioritization System
      5. Deployment Processes for Leaders
      6. Roles of Management and Others
      7. Curricula and Training System
      8. Project and Initiative Review Schedule
      9. Project Reporting and Tracking System
      10. Audit System for Previously Closed Projects
      11. Reward and Recognition Plan
      12. Communications Plan
    4. Selecting the Right Projects
      1. Six Sigma and Lean Projects
      2. Selecting Good Lean Six Sigma Projects
    5. The Concept of Process Entitlement
    6. Developing the Project Charter
    7. Selecting the Right People
      1. The Leadership Team
      2. Champion
      3. Black Belt
      4. Green Belt
      5. Master Black Belt
      6. Functional Support Groups
      7. Forming Teams
      8. Where Do I Find the Resources?
    8. What Training Do I Need?
      1. Sample Black Belt Course for Finance
      2. Sample Black Belt Course for Manufacturing
      3. Sample Green Belt Course for Manufacturing
    9. Selecting a Lean Six Sigma Provider
    10. Summary and Looking Forward
    11. References
  17. Chapter 7 Managing the Effort
    1. Managerial Systems and Processes
    2. Management Project Reviews
    3. Project Reporting and Tracking
    4. Communications Plan
    5. Reward and Recognition Plan
    6. Project Identification and Prioritization
    7. Project Closure: Moving On to the Next Project
    8. Lean Six Sigma Budgeting
    9. Deployment Processes for Leaders
    10. Integrating Lean Six Sigma with Current Management Systems
    11. Summary and Looking Forward
    12. References
  18. Chapter 8 Sustaining Momentum and Growing
    1. Playing Defense: Sustaining Momentum
      1. Holding Project Gains
      2. Quarterly and Annual Reviews
      3. The Training System
      4. Leadership Green Belt Training
      5. Lean Six Sigma Organizational Structure
      6. Six Sigma Leaders Must Work Together As a Team
      7. The “Lean Six Sigma Sweep”
    2. Playing Offense: Growing the Effort
      1. Expanding Lean Six Sigma Throughout the Organization
      2. Using Six Sigma to Improve Supplier Performance
      3. Expanding the Improvement Portfolio
      4. Which Methodologies to Add?
      5. Implications for Infrastructure
      6. Selecting the Most Appropriate Methodology
      7. Growing the Top Line
    3. Summary and Looking Forward
    4. References
  19. Chapter 9 The Way We Work
    1. Creating a Holistic Improvement System
    2. The Improvement Project Portfolio
    3. The Improvement Organization
    4. Integration of Quality and Process Management Systems
    5. Synergies with ISO 9000
    6. Synergies with the Malcolm Baldrige National Quality Award
    7. Synergies with Risk Management
    8. Don’t Forget About Process Control
    9. Don’t Forget About Managerial Processes
    10. Motorola Financial Audit Case
    11. The Long-Term Impact of Holistic Improvement
    12. Holistic Improvement Drives Culture Change
    13. Improvement As a Leadership Development Tool
    14. Summary and Looking Forward
    15. References
  20. Chapter 10 Final Thoughts for Leaders
    1. Understanding the Role of the Methods and Tools: A Case Study
      1. Define Phase
      2. Measure Phase
      3. Analyze Phase
      4. Improve Phase
      5. Control Phase
      6. Results
    2. How to Think About the Methods and Tools
      1. Tools Themselves Don’t Make Improvements
      2. Tools Must Be Properly Sequenced
      3. Leadership Is Still Required
      4. Incorporate Subject Matter Knowledge
    3. Summary and Looking Forward
    4. References
  21. Appendix A Ensuring Project and Initiative Success
  22. Appendix B Glossary
  23. Appendix C Acronyms
  24. Index