You are previewing The Complete Idiot’s Guide® to Lean Six Sigma.
O'Reilly logo
The Complete Idiot’s Guide® to Lean Six Sigma

Book Description

Increasingly popular with large and mid-sized companies around the world, Lean Six Sigma is the new hybridization of Six Sigma and Lean methodologies. Packed with diagrams and real-life examples, The Complete Idiot's Guide® to Lean Six Sigma reveals the four keys of Lean Six Sigma and how to apply them to one's job. Also included are the concepts, tools, templates, tips, examples, and implementation steps required to move through its process.

Table of Contents

  1. Copyright
    1. Dedication
  2. Introduction
    1. How This Book Is Organized
    2. Things to Help You Out Along the Way
    3. Acknowledgments
    4. Trademarks
  3. 1. Understanding Lean Six Sigma
    1. 1. What Is Lean?
      1. It’s All About Value
      2. Lean Is One Big Waste-Removal Machine
      3. Where Did Lean Come From?
        1. Henry Ford’s Big Problem
        2. Taiichi Ohno’s Revelations
        3. The Machine That Changed the World
      4. What Is a Kaizen Event?
        1. The Least You Need to Know
    2. 2. The Basics of Lean
      1. Muda, Muda, Muda (The Eight Types of Waste)
        1. The Waste of Waiting
        2. The Waste of Overproduction
        3. The Waste of Rework
        4. The Waste of Motion
        5. The Waste of Transportation
        6. The Waste of Processing
        7. The Waste of Inventory
        8. The Waste of Intellect
      2. You Know More About Lean Than You Think
        1. Practice Rapid Changeover
        2. Keep the Flow
        3. Pull What You Need
        4. Balance the Workload
        5. Develop Cellular Layouts
        6. Embody the Five Ss
        7. Make Mistakes Impossible
        8. Standardize Work and Processes
        9. The Least You Need to Know
    3. 3. What Is Six Sigma?
      1. Many Things to Many People
      2. Can You See Your Hidden Process?
      3. Where Did Six Sigma Come From?
        1. Quality Beginning
        2. Quality Crazy
        3. Quality Business
      4. You Know More About Six Sigma Than You Think
        1. Y = f(x)
        2. Measure, Measure, Measure
        3. Claim Your Entitlement
      5. The Six Sigma DMAIC Methodology
        1. The Least You Need to Know
    4. 4. The Basics of Six Sigma
      1. It’s All Greek to Me
        1. Basic Statistical Terms
        2. What Is a CT?
        3. What Are Specifications?
        4. What Is a Statistical Population?
        5. What Is a Standard Deviation?
      2. What Does Six Sigma Look Like?
      3. It’s All About Variation
      4. How Capable Is Your Process?
        1. Mind Your CTs
        2. Multiply Your Yields
      5. Beware of Shift and Drift
        1. The Least You Need to Know
    5. 5. What Is Lean Six Sigma?
      1. Lean Six Sigma Is Faster, Better, and Cheaper
        1. The Business Focus
        2. The Statistical Focus
        3. Better Isn’t Always Better
      2. The Job of Business Is Value Creation
      3. The Lineage of Lean Six Sigma
      4. Evolution Cannot Be Stopped
      5. Ode to the Pioneers
        1. AlliedSignal
        2. Maytag
      6. DMAIC, or Kaizen Event?
        1. The Least You Need to Know
  4. 2. Defining and Measuring Performance
    1. 6. Develop Project Opportunities
      1. Figure Out What’s Critical
        1. The Customer View
        2. The Business Owner’s View
      2. Brainstorming Project Possibilities
      3. More Idea Sources
        1. The Balanced Scorecard
        2. Voice of the Customer
        3. Value Stream Mapping
        4. The Bigger Picture
      4. Separate Wheat from Chaff
      5. What’s Most Important?
      6. The Prioritization Matrix
        1. The Least You Need to Know
    2. 7. Clarify the Problem
      1. Introducing Define
      2. Write Problem Statement
      3. Define the High-Level Process
        1. It All Comes Down to Processes
        2. The SIPOC Map
        3. Document the Process
        4. Value-Added, Non-Value-Added
        5. Spaghetti You Don’t Eat
      4. Collect the Voice of the Customer
        1. The Kano Model
        2. Focus on What Must Be
        3. The Least You Need to Know
    3. 8. Set the Goal
      1. A Note About Scope
      2. Define Project Metrics
        1. One Project, One Y
        2. Primary, Secondary, Consequential
      3. Verify Alignment to Business Metrics
      4. Establish Baseline and Entitlement
        1. Calculate Your Standard Deviation
        2. Don’t Forget to Benchmark
      5. Develop an Objective Statement
      6. Estimate Financial Benefits
        1. Savings, Cost Avoidance, and Revenue
        2. The Least You Need to Know
    4. 9. Finalize the Plan
      1. Identify Project Team
      2. Identify Stakeholders
        1. Stakeholder Analysis
        2. Power Influence Map
        3. Stakeholder Action Plan
      3. Identify Project Risks
      4. Establish Project Timeline
      5. Create Project Charter
      6. Choosing Your Methodology
      7. Communicate, Communicate, Communicate
      8. Conduct Tollgate Review
        1. The Least You Need to Know
    5. 10. Measure the Process
      1. Introducing Measure
      2. Knowing What to Improve
        1. Not as Easy as You Think
        2. Four Things to Do
      3. Primary Metric Defects or Time?
        1. Flow the Process Flow
        2. Swimming in Lanes
        3. The 8.5-by-11 Syndrome
        4. Significant Other Test
        5. Value Stream Maps
      4. Expose Simplification Opportunities
        1. Executing Quick-Hit Opportunities
        2. Where Do I Go From Here?
        3. The Least You Need to Know
    6. 11. Validate Measurement Systems
      1. Identify Existing Measurement System
      2. Analyze the Measurement System
        1. Attribute MSA
        2. Variable MSA
      3. Improve the Measurement System
      4. Validate Customer Requirements
        1. Defect-Based Requirements
        2. Time-Based Requirements
        3. The Least You Need to Know
    7. 12. Characterize the Process
      1. Collect Data
        1. Make a Plan
        2. Sampling
      2. Examine Process Stability
        1. Run, Run Chart, Run
        2. Control Chart
        3. Histograms
      3. Perform Capability Analysis
        1. Why Sigma Score?
        2. Process Capability and Time
      4. Conduct Tollgate Review
        1. The Least You Need to Know
  5. 3. Analyzing, Improving, and Controlling Processes
    1. 13. Identify Potential Causes
      1. Introducing Analyze
      2. Focus on the xs
        1. Wayne and Fred
        2. Extracting Causes from Process Mapping
        3. Brainstorming Techniques
        4. Affinity Diagrams
        5. Fishbone Diagrams
        6. Ask Why Five Times
      3. Failure Mode and Effects Analysis
      4. Narrow the Potential Causes
        1. Multivoting
        2. Cause-and-Effect Matrix
      5. Pick Your Analyze Tool Set
        1. The Least You Need to Know
    2. 14. Conduct Efficiency Analysis
      1. Name That Waste
      2. Value Analysis
      3. Examining Inventory Levels
        1. Queueing Theory
        2. Little’s Law
        3. Takt Time Analysis
        4. Do You Kanban?
      4. Analysis of Resource Usage
        1. Ideal Manning
        2. Workload Balance
        3. Analyzing Standard Work Combinations
        4. Spaghetti Diagrams
      5. Overall Equipment Effectiveness
        1. Quick Changeover Opportunities
        2. Total Productive Maintenance (TPM)
      6. Identifying Bottlenecks in the Process
        1. The Least You Need to Know
    3. 15. Find Significant xs
      1. Collect Data on the xs
        1. Computer Databases
        2. Logs (Logbooks and Log Sheets)
        3. Data Collection Forms
        4. Check Sheets
        5. Control Charts
        6. Observation of Processes
      2. Special Studies
      3. Sample Size Calculations
        1. Comparing Averages
        2. Comparing Percentages (Proportions)
      4. Graphical Analysis
      5. Conduct Statistical Analysis
      6. p-Values and Hypothesis Testing
      7. Statistical Analysis Methods
        1. Tests for Averages
        2. Tests for Proportions
        3. The Least You Need to Know
    4. 16. Solve the Problem
      1. Prioritize the xs
        1. Focus on the Primary Metric
        2. Revisit the Cause-and-Effect Matrix
      2. Evaluate the Impact on Y
        1. Design of Experiments
        2. Analysis of Variance
        3. Simulation
      3. State the Y = f(x) Equation
      4. Conduct Tollgate Review
        1. The Least You Need to Know
    5. 17. Create the Future State
      1. Introducing Improve
      2. Your Future State
        1. What Needs to Change?
        2. Which Path to Take?
      3. The Five Ss
        1. Sort (Seiri)
        2. Store (Seiton)
        3. Shine (Seiso)
        4. Standardize (Seiketsu)
        5. Sustain (Shitsuke)
      4. Standard Work
        1. Managing Standard Work
        2. Multiple Skills Matrix
      5. Cellular Layout
        1. Rebalance Equipment
        2. Quick Changeover
        3. Implementing TPM
      6. Kaizen Events
        1. The Least You Need to Know
    6. 18. Generate and Evaluate Solutions
      1. Generate Solutions
        1. Still Need Solutions?
        2. Brainstorming
        3. Structured Innovation
        4. Applying Lean Concepts
        5. Process Thinking
      2. Evaluate Potential Solutions
        1. Find Affinities and Consolidate
        2. Potential Solutions Matrix
      3. Conduct Experimental Trials
        1. Simulations
        2. Mathematical Models
      4. State the Y = f(x)
        1. Contour Plots
        2. Optimization
        3. Monte Carlo Simulation
        4. DOE Methods for Multiple Solutions
        5. The Least You Need to Know
    7. 19. Implement the Solution
      1. Select the Solution
        1. Ease, Permanence, Impact, and Cost
        2. Selecting Competing Solutions
      2. Pilot the Solution
      3. Evaluate Pilot Performance
      4. Identify Risks and Countermeasures
      5. Develop Implementation Plan
        1. Update Stakeholder Analysis
        2. The Training Plan
        3. Systems and Supports
        4. Communicate
      6. Conduct Tollgate Review
        1. The Least You Need to Know
    8. 20. Develop the Control Plan
      1. Introducing Control
      2. Control x, Monitor Y
        1. An Ounce of Prevention
        2. Update Your Process Flow
        3. Update Your FMEA
      3. Be Consistent and Standardize
      4. Plan for Control
        1. The Least You Need to Know
    9. 21. Use Control Charts
      1. What Are Control Charts?
      2. Constructing Control Charts
        1. Individuals Control Chart
        2. Other Control Charts
      3. Interpreting a Control Chart
        1. Special Causes
        2. Common Causes
      4. Acting on the Interpretation
        1. The Least You Need to Know
    10. 22. Lock In the Gains
      1. Show Me the Money
      2. Make It Known
        1. Project Storyboard
        2. The Final Report
      3. Herding Cats
      4. Opportunities and Obstacles
        1. Opportunities
        2. Obstacles
      5. Pass the Baton
      6. Conduct Tollgate Review
      7. Let’s Celebrate
        1. The Least You Need to Know
  6. 4. Leading Lean Six Sigma Initiatives
    1. 23. Lean Six Sigma Deployment
      1. How Does a Business Excel?
      2. Product/Service Life Cycle
        1. Innovation and Growth
        2. Design and Development
        3. Operations and Support
      3. Total Performance Excellence
      4. Deployment Phases
        1. Assess Performance
        2. Plan Improvements
        3. Enable Execution
        4. Execute Projects and Events
        5. Sustain Improvements
      5. Critical Success Factors
        1. The Least You Need to Know
    2. 24. Prepare the Path
      1. Assess Road Map
      2. Assess Organizational Readiness
        1. Conduct Needs Assessment
        2. Establish Cultural Readiness
        3. Conduct Stakeholder Assessment
      3. Evaluate the Organizational Situation
        1. Review Organizational Strategy
        2. Review Competitive Position
        3. Customer Value Proposition
        4. People Matter
      4. Conduct Opportunity Assessment
        1. Establish Approach
        2. Educate and Engage Personnel
        3. Project Identification
        4. Prioritize Projects
        5. Assign Methodology
        6. Complete Project Charters
        7. Project Tracking Software
        8. The Least You Need to Know
    3. 25. Design Your Destiny
      1. Design Road Map
      2. Establish Deployment Objectives
        1. Design Overall Objectives
        2. Current-Year Priorities
        3. Design the Organization
      3. Engage Leadership Support
        1. Secure Executive Sponsorship
        2. Demystify the Approach
        3. Engage Deployment Champions
        4. Champions and Process Owners
      4. Install Deployment Infrastructure
        1. Human Resources
        2. Finance
        3. Information Technology
        4. Project Management
        5. Training
        6. Communication
      5. Design Governance Model
        1. Design Governance Metrics
        2. Long-Term Practitioner Strategies
        3. Establish Practitioner Selection Process
        4. Identify Practitioners
        5. Align Projects and People
        6. Set Performance Objectives
        7. The Least You Need to Know
    4. 26. Enable Everyone Involved
      1. Enable Road Map
      2. Adapt Approaches and Intellectual Property
        1. Evaluate and Adapt Methodology
        2. Adapt Curriculum
        3. Integrate with Other Initiatives
      3. Management Awareness and Education
        1. Deployment Champion Education
        2. Project Champion Training
        3. Process Owner Training
        4. Functional Champion Training
      4. Black Belts, Green Belts, and Facilitators
        1. Welcome to Your New Career
        2. Training and Project Work
        3. Coaching and Mentoring
        4. The Least You Need to Know
    5. 27. Make It Happen
      1. Execute and Sustain Road Map
      2. Execute and Review Progress
        1. The Implementation Plan
        2. Execute and Review Projects
        3. Champion Review
        4. Steering Committee Review
        5. Executive Team Review
      3. Sustain the Initiative
      4. Master Development
        1. Role Definition and Selection
        2. Train and Certify Masters
      5. Adapt and Customize Deployment
        1. Mine for Gold in Your Own Backyard
        2. Manage and Disseminate Knowledge
      6. Health Check and Dashboard Review
        1. Deployment Health Check
        2. Doctor, Doctor, Give Me the News
      7. Re-energize the Program
        1. Deployment Objective Review
        2. Evaluate Performance and Resources
        3. Establish Focus for Next Year
        4. The Least You Need to Know
  7. A. Glossary
  8. B. Road Maps and Blueprint
  9. C. Sigma Conversion Chart
  10. D. Resources
    1. Books
    2. Websites