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Lean Six Sigma Business Transformation For Dummies

Book Description

Use Lean Six Sigma to transform your business.

Lean Six Sigma is a powerful method for improving both the efficiency and quality of projects and operations. In this new book, the team that bought you Lean Six Sigma For Dummies shows you how to take Lean Six Sigma to the next level and manage continual change in your organization. You'll learn to design a roadmap for transformation that's tailored to your business objectives; develop and implement processes that eliminate waste and variation across the company; synchronize your supply chain; and successfully deploy Lean Six Sigma over time.

Lean Six Sigma Business Transformation For Dummies shows you how to:

  • Define your transformation objectives and create a bespoke 'Transformation Charter' for your organization.

  • Assess your company's readiness for transformation.

  • Establish a 'Transformation Governance System' to help you manage the transformation programme effectively.

  • Bring your people with you! Plan and achieve the cultural change needed to make the transformation process successful.

  • Join up the dots between planning and effective execution with Strategy Deployment.

  • Deploy a 'Continuous Improvement' toolkit to achieve everyday operational excellence.

  • Sustain the transformation programme and widen the scope across the organization (including deploying to the supply chain).

  • Adopt a 'Capability Maturity Approach' to drive business improvement - recognizing that change is a continuous transformational journey, just as pioneers like Toyota have done.

  • Use a range of Lean Six Sigma Tools - using the right tools, at the right time (and in the right order!) enables continuous improvement by eliminating waste and process variation.

  • Table of Contents

      1. Introduction
        1. About This Book
        2. Foolish Assumptions
        3. Icons Used In This Book
        4. Beyond the Book
        5. Where to Go From Here
      2. Part I: Getting Started with Lean Six Sigma
        1. Chapter 1: Introducing Lean Six Sigma
          1. Defining Transformation
          2. Introducing the Plan–Do–Check–Act Cycle
          3. Showing the Way with Lean Six Sigma
            1. Identifying the key principles of Lean Six Sigma
            2. Explaining Lean thinking
            3. Linking up with Six Sigma thinking
            4. Accessing the best of both worlds
          4. Improving Existing Processes with DMAIC
            1. Isolating the problem
            2. Working out what’s happening
            3. Understanding why it’s happening
            4. Coming up with an idea
            5. Making sure it’s really sorted
          5. Designing New Processes with DMADV
            1. Defining the design
            2. Getting the measure of the design
            3. Conducting analysis
            4. Developing the design
            5. Making sure the design will work
          6. Recognising DMAIC and DMADV Transition Points
          7. Bringing It All Together
        2. Chapter 2: Introducing Business Transformation
          1. Determining Where You Are Now and Where You Need to Be
            1. Where are you now?
            2. Where are you going?
            3. How will you get there?
            4. Going for a drive
          2. Understanding the Key Principles of Business Transformation
            1. Identifying True North
            2. Following a clear strategic direction
            3. Planning the route
            4. Keeping it simple
            5. Keeping on track
            6. Doing the right things
            7. Doing things right
            8. Dealing with the soft stuff
          3. Looking Out for the Pitfalls
            1. Checking that everyone’s on board
            2. Considering what can go wrong
            3. Taking on too much too soon
            4. Accentuating the positive with negative brainstorming
          4. Creating the Vision
            1. Going backwards – more or less
            2. Locating True North
            3. Answering what’s in it for me?
            4. Spreading the word
        3. Chapter 3: Learning to DRIVE
          1. Introducing DRIVE
            1. Define
            2. Review
            3. Improve
            4. Verify
            5. Establish
          2. Creating the Framework
            1. Building the team
            2. Developing the plan
            3. Communicating effectively
            4. Ensuring clear ownership
            5. Getting the measure
          3. Taking a Mature Approach
            1. Using maturity models
            2. Assessing capability
          4. Deploying the Strategy
            1. Leading the way
            2. Keeping it focused
          5. Focusing on the Customer
            1. Knowing your customers – past, present and future
            2. Valuing your customers
          6. Building Links and Strengthening the Supply Chain
            1. Getting the measure of suppliers
            2. Making the right links
            3. Joining up the thinking
          7. Recognising the Importance of the Soft Stuff
            1. Defining the need
            2. Analysing the gaps
            3. Creating the training plan
            4. Going outside
          8. Enabling Continuous Improvement
            1. Looking at the role of the manager
            2. Assembling the toolkit
            3. Feeling able and being able
      3. Part II: Scoping the LSS Transformation Journey
        1. Chapter 4: Defining Your Transformation Objectives
          1. Identifying Your Need
            1. Spotting longer-term corporate objectives
            2. Working out corporate objectives
            3. Linking with breakthrough objectives
          2. Focusing on the Vital Few Breakthrough Objectives
            1. Looking at who should be involved
            2. Step One: Scoping
            3. Step Two: Grouping
            4. Step Three: Recognising causal interrelationships
            5. Step Four: Selecting your transformation objective
            6. Transformation workstreams
          3. Creating a Transformation Charter
            1. Ensuring it’s a living document
            2. Breaking down the contents
        2. Chapter 5: Assessing Readiness for Transformation
          1. Assuring an Appropriate Business Strategy
            1. Identifying your strategy
            2. Testing and validating your strategy
          2. Working With Your Strategic Plan
            1. Looking at the components of the strategic plan
            2. Reviewing the strategic plan
            3. Defining strategic essentials
          3. Checking Out the Capability Maturity Road Map
            1. Recognising that every organisation is different
            2. Putting together the road map
        3. Chapter 6: Establishing the Transformation Governance System
          1. Leading by Example: Driving the Transformation
            1. Agreeing the role of the transformation board
            2. Separating from operational management
            3. Establishing the Transformation Board Charter
            4. Identifying who else needs to be involved
          2. Establishing the Programme Management Office
            1. Selecting the manager
            2. Assigning authority and responsibility
            3. Tracking and Reviewing Progress
            4. Working out how frequently progress should be reviewed and reported
            5. Choosing programme/project tracking systems
            6. Understanding interdependencies and constraints
            7. Aligning workstreams
          3. Taking Corrective Action
            1. Initiating action
            2. Managing interdependencies
            3. Updating plans
          4. Walking the Talk
      4. Part III: Planning the Transformation Journey
        1. Chapter 7: Understanding Business Breakthroughs and Fundamentals
          1. Avoiding Initiative Overload
            1. Recognising that more is less
            2. Weeding out unnecessary initiatives
            3. Avoiding succumbing to scope creep
          2. Identifying Business Breakthroughs
            1. Distinguishing breakthroughs from daily management
            2. Working out how many breakthroughs you can handle
          3. Determining the Business Fundamentals
            1. Maintaining a routine
            2. Managing the key processes
          4. Establishing Key Performance Indicators
            1. Deciding on the approach
            2. Acknowledging the value of values
            3. Weighing up the balanced scorecard
            4. Looking at management by objectives
            5. Understanding the notion of Hoshin
        2. Chapter 8: Planning for Strategy Deployment
          1. Making Strategy Deployment Happen in Practice
            1. Linking back to strategy
            2. Following the strategy deployment steps
          2. Decomposing and Cascading the Critical Objectives
            1. Targeting your critical objectives
            2. Establishing focus areas
            3. Specifying process improvements
          3. Creating the Strategy Deployment Architecture
            1. Cascading to the point of impact
            2. Creating the strategy deployment roll-out schedule
          4. Playing Catchball
            1. Planning a catchball meeting
            2. Running a catchball meeting
            3. Setting the catchball meeting agenda
            4. Following on from a catchball meeting
          5. Introducing the X Matrix
            1. Identifying the what, how, how much and by when, and who
            2. Looking at the components of the X Matrix
            3. Working out how to use the X Matrix
            4. Establishing process measures
            5. Sorting out the human resources
        3. Chapter 9: Implementing Strategy Deployment
          1. Starting SD Implementation
            1. Developing the X Matrix in further detail
            2. Creating effective action plans
            3. Using speedy tracking charts
          2. Managing Breakthrough Improvements
          3. Getting Back to Business Fundamentals
            1. Keeping a handle on the day-to-day work
            2. Managing for daily improvement
            3. Carrying out standardised work
          4. Sticking to the Plan
          5. Ensuring Effective SD Progress Reviews
            1. Timing SD review meetings
            2. Establishing everyone’s roles
            3. Setting the SD review meeting agenda
            4. Reporting
          6. Driving Results with Countermeasures
          7. Getting the Most from Visual Management
        4. Chapter 10: Establishing a Continuous Improvement Organisational Structure
          1. Setting Up the Structure for Continuous Improvement
          2. Creating Standards while Maintaining Flexibility
          3. Introducing the Continuous Improvement Group
            1. The corporate continuous improvement group
            2. Divisional/regional continuous improvement groups
          4. Understanding the Stakeholders
            1. Business leader
            2. Champion/sponsor
            3. Value stream manager
            4. Functional manager
            5. Lean Six Sigma Black Belts
            6. Lean Six Sigma Green Belts
      5. Part IV: Starting out on the Transformation Journey
        1. Chapter 11: Creating the Right Culture
          1. Culture, What Culture?
            1. Understanding what culture means
            2. Assessing your organisation’s culture
            3. Identifying the leadership culture
            4. Initiating cultural change
          2. Managing a Cultural Transformation
            1. Kotter’s eight steps to cultural change
            2. Lewin’s three phases of change
            3. Utilising a cultural transformation plan
          3. Achieving Stakeholder Buy-in
            1. Acknowledging resistance to change
            2. Dealing with resistance
          4. Developing the Vision for Change
          5. Getting Communication Right
            1. Working out what to communicate and when
            2. Creating a communication plan
          6. Developing Employees’ Skills
            1. Fostering a learning organisation
            2. Assessing learning needs
            3. Role-specific training
          7. Recognising that Change can be Rewarding
            1. Knowing when to reward
            2. Initiating a reward and recognition plan
          8. Giving Power to the People
            1. Facing up to the management challenge
            2. Following the Lean Six Sigma approach
            3. Giving power to teams
            4. Staying focused on the transformation process
        2. Chapter 12: Achieving Everyday Operational Excellence
          1. Deploying Lean Six Sigma Training
            1. Training the belts
            2. Assessing the skills
            3. Setting up certification
          2. Prioritising and Selecting Improvement Opportunities
            1. Rapid improvement events
            2. DMAIC projects
            3. Applying manufacturing process improvements to services
          3. Establishing How You Do Things
            1. Understanding the value stream
            2. Using Kaizen effectively
            3. Achieving results
            4. Keeping the focus
          4. Giving Power to the People
            1. Recognising the challenge management faces
            2. Empowering teams
            3. Maintaining focus on the overall transformation
      6. Part V: Sustaining the Transformation
        1. Chapter 13: Widening the Scope of the Transformation
          1. Looking at Different Organisational Structures
            1. Differentiating between divisional and functional structures
            2. Initiating a value stream organisational structure
            3. Considering the role of Lean Six Sigma programme leadership
            4. Establishing value streams
            5. Managing value streams
          2. Getting Closer to the Customer
            1. Identifying your customers
            2. Improving the customer experience
          3. Deploying to the Supply Chain
            1. Understanding the supply chain
            2. Five guiding principles of Lean supply
            3. Involving suppliers in the transformation journey
        2. Chapter 14: Managing the Capability Maturity Journey
          1. Introducing the Capability Maturity Model
            1. Working through the gears
            2. Examining the elements
          2. Building the Capability Maturity Matrix
            1. Assessing capability maturity
            2. Using effective assessment tools
            3. Going through the assessment process
            4. Developing customised questionnaires
            5. Choosing assessors
            6. Checking out assessors’ skills
            7. Interpreting the outcome
          3. Monitoring the Capability Maturity Journey
            1. Dealing with changes of direction
            2. Constantly updating the route
      7. Part VI: The Part of Tens
        1. Chapter 15: Ten Tips for Smoothing the Transformation Process
          1. Obtain Leadership Ownership
          2. Communicate, Communicate, Communicate
          3. Use Strategy Deployment to Drive Improvement Programmes
          4. Don’t Let Perfect Get in the Way of Better
          5. Recognise and Celebrate Successes
          6. Create a Capability Maturity Roadmap and Regularly Review it
          7. Provide Appropriate Training as it is Needed
          8. Encourage Leaders and Managers to Manage Daily Improvements
          9. Listen to the Voice of Your Customers and Other Stakeholders
          10. Don’t Be Afraid to Make Mistakes, but Do Learn from Them
        2. Chapter 16: Ten Pitfalls to Avoid
          1. Too Much Focus on Short-Term Objectives
          2. Strategies that aren’t Clearly Defined
          3. Not Enough Programme Planning
          4. Making Assumptions about the Needs of Customers and Other Stakeholders
          5. Not Obtaining Process Ownership
          6. Ignoring the Soft Stuff
          7. Assuming that No Response Means No Resistance to Change
          8. Strategic Breakthroughs that aren’t Really Breakthroughs
          9. Not Organising Monthly Strategy Deployment Reviews
          10. Lack of Trained Lean Six Sigma Practitioners
        3. Chapter 17: Ten Places to Go for Help
          1. Your Colleagues
          2. Other Organisations
          3. The Internet
          4. Social Media
          5. Networks and Associations
          6. Conferences
          7. Books and Publications
          8. Periodicals
          9. Software
            1. Statistical analysis
            2. Deployment management
          10. Training and Consultancy Companies
      8. About the Authors
      9. Cheat Sheet