Lean Six Sigma Service Excellence A Guide to

Current books on Lean Six Sigma for service or transactional organizations either require a significant technical background, or are rather conceptual in nature and lack the detail of the tools, how to use them, and the practical skill-building exercises needed to give readers the ability to actually implement Lean Six Sigma in their organizations. This book fills the void. Written for the typical business professional, Lean Six Sigma Service Excellence effectively translates the concepts of Lean Six Sigma from a manufacturing environment to a service delivery environment. It is a user friendly guide to successfully implementing Lean Six Sigma practices in non-manufacturing organizations. It is also an inexpensive path to Green Belt certification.

Gerald Taylor is Founder and President of The Performance Management Group LLC, a firm that specializes in performance improvement and leadership development. He has over 15 years experience designing and implementing quality and Six Sigma solutions as an internal corporate consultant and as an external engagement manager for service organizations such as Sprint Long Distance, Automatic Data Processing, Logix Communications, Dynegy Global Communications Corporation and Oneok Corporation.

Mr. Taylor and his associates are certified Six Sigma Black Belts who train and certify Six Sigma Black Belt professionals and quality practitioners to serve as technical experts in their working environments. He is also a certified Malcolm Baldrige examiner and two-time quality examiner for the Arizona Governor's Spirit of Excellence in Government Award. He was previously an associate professor of business administration at Western International University and a faculty member for Mesa College. Gerald currently serves as a board member for the Arizona Chapter of the Association for Strategic Planning and he is a published author of various works in the field of Six Sigma, quality improvement and service management. He earned his undergraduate degree in management and his MBA from the WP Carey School of Business at Arizona State University.

Preface	p. ix
In Keeping	p. xiii
Acknowledgments	p. xv
About the Author	p. xvii
Web Added Value	p. xix
The Quest for Productivity	p. 1
What Is Productivity?	p. 2
Productivity and Global Implications: Outsourcing	p. 4
Quality and Productivity: A Historical Perspective	p. 4
The Cost of Poor Quality	p. 6
Quality Improvement and Corporate America	p. 7
The Value Proposition of Quality Improvement	p. 8
The Beneifts of the Quality Movement in Corporate America	p. 9
The Quality Movement in America Has Delivered on Its Promise	p. 10
Malcolm Baldrige National Quality Program	p. 10
Six Sigma Quality Improvement	p. 11
The Foundation of the Quality Movement in America	p. 12
Conclusion	p. 13
It's the Process!	p. 15
Paying the Ultimate Price for Not Being Process Perfect	p. 15
It's the Process!	p. 16
Process Vocabulary: A Common Language	p. 17
Properties of a Well-Designed Process Management System	p. 17
Process Design	p. 21
Flowcharting: A Traditional Process Mapping Method	p. 21
SIPOC Process Mapping	p. 24
Requirements Based Process Design	p. 27
Creating Cross-Functional Organizations	p. 31
Conclusion	p. 33
The Voice of the Customer	p. 35
What Is the Voice of the Customer?	p. 36
Why Focus on Customer Loyalty?	p. 36
Properties of a Well-Designed Customer Loyalty Model	p. 38
How to Assess the Voice of the Customer	p. 40
Voice of the Customer Assessment Techniques	p. 41
Qualitative Research Methods	p. 42
Quantitative Research: Surveys	p. 43
Assessing the Voice of the Customer: An Analysis of Customer Importance and Satisfaction	p. 47
Conclusion	p. 50
Analyzing Performance Variation	p. 51
Analyzing Performance Variation	p. 51
The Scientific Basis for Performance Variation	p. 52
What Is Performance Variation?	p. 53
Analyzing Baseline Performance: The Run Chart	p. 54
Common Cause and Special Cause Management Actions	p. 62
Conclusion	p. 62
The Basic Six Sigma Tool Kit	p. 63
The Six Sigma Analytical Tool Kit	p. 63
Data Sheet	p. 65
Histogram	p. 66
Cause and Effect Diagram	p. 71
Scatter Diagram	p. 75
Pareto Analysis	p. 79
Statistical Process Control for Service Excellence	p. 84
Control Chart Selection	p. 85
Control Chart Descriptions	p. 90
XmR Chart: Individual Measurement with Moving Range Chart	p. 90
X,R Chart: Average and Range Chart	p. 94
X,S Chart: Average and Standard Deviation Chart	p. 99
p Chart: Proportion of Defectives Chart	p. 104
np Chart: Number of Defectives Chart	p. 107
c Chart: Number of Defects Chart	p. 110
u Chart: Average Number of Defects per Unit Chart	p. 113
Performance Variation: A Review	p. 116
Control Chart Analysis	p. 117
Performance Evaluation: Process Capability Analysis	p. 123
Conclusion	p. 128
Performance Metrics and Dashboards: Building Your Performance Measurement System	p. 131
The Value Stream	p. 132
The Hidden Factory	p. 133
Measuring Service Quality	p. 135
Measuring Service Efficiency	p. 137
Measuring Service Production	p. 138
Measuring Operational Effectiveness	p. 139
Measuring Cost Effectiveness	p. 141
Conclusion	p. 143
The Six Sigma Project Team	p. 145
Team Roles and Responsibilities	p. 145
Project Team Leader: Black Belt/Green Belt	p. 145
Project Team Facilitator: Master Black Belt/Black Belt	p. 147
Project Team Member: Green Belt or Yellow Belt	p. 148
How to Establish a Six Sigma Project Team	p. 149
How to Support Six Sigma Project Teams	p. 149
Stages of Team Evolution	p. 150
Forming	p. 150
Storming	p. 151
Norming	p. 151
Performing	p. 152
Remedies for the Problems of Team Evolution	p. 152
Conclusion	p. 153
Six Sigma Soft Skills: Working with and through Others	p. 155
Successful Team Attributes	p. 156
Acceptable Norms: Ground Rules	p. 156
Purpose	p. 158
Developing a Mission Statement	p. 158
Consensus Building	p. 161
Groupthink	p. 163
Understanding and Managing Change	p. 165
Change and the Six Sigma Experience	p. 166
Unfreezing the Business Context	p. 167
Implement Six Sigma	p. 168
Refreeze the Business Context	p. 169
Conclusion	p. 169
Management by Fact: The DMAIC Approach to Performance Improvement	p. 171
Fire Fighting	p. 171
What Is Management by Fact?	p. 172
What Is Six Sigma?	p. 173
What Six Sigma Is Not	p. 174
Key Six Sigma Concepts	p. 174
From Root Cause to Performance Improvement: PDCA	p. 176
The DMAIC Process: A Structured Approach to Improvement	p. 177
Define Phase	p. 178
Measure Phase	p. 181
Analyze Phase	p. 184
Improve Phase	p. 186
Control Phase	p. 187
Six Sigma Project Management Overview	p. 187
Six Sigma Master Project Plan	p. 188
Six Sigma Personal Action Plan	p. 188
Business Reviews and Project Briefings	p. 189
Conclusion	p. 193
Deploying Your Performance Excellence System	p. 195
Attributes of a Strong Performance Excellence System	p. 196
Focusing on Core Operating Processes	p. 198
Integrating Measurements	p. 199
Eliminating Non-Value-Added Tasks	p. 201
Conclusion	p. 203
The Fundamentals of Lean Thinking for Service Excellence: Doing More with Less!	p. 205
Lean Thinking	p. 205
What Is Lean?	p. 205
Value: Value Creation and Value Added	p. 207
Muda: Waste, Waste, Waste	p. 210
Value Stream Mapping: Eliminating the Six Sources of Service Muda	p. 212
Determine the Service Process	p. 213
Map the Current State	p. 213
Analyze the Process	p. 214
Define the Future State	p. 214
PDCA: Plan, Do, Check, Act	p. 215
5S: Getting Your Service House in Order	p. 215
Sort	p. 216
Set in Order	p. 217
Shine	p. 217
Standardize	p. 217
Sustain	p. 218
Conclusion	p. 218
Lean Six Sigma Service Excellence: A Road Map to Green Belt Certification	p. 219
Lean Six Sigma Service Excellence Green Belt Certification Program	p. 220
Tools	p. 221
Glossary	p. 223
References	p. 233
Chapter 4 Exercise Answers	p. 235
Run Chart Construction Exercise	p. 235
Run Chart Analysis Exercises	p. 236
Chapter 5 Exercise Answers	p. 239
Histogram Exercise	p. 239
Cause and Effect Diagram Exercise	p. 240
Scatter Diagram Exercise	p. 241
Pareto Analysis Exercise	p. 242
Control Chart Selection Exercises	p. 246
Control Chart Analysis Exercise	p. 247
Additional Lean Six Sigma Tools and Methods	p. 249
Correlation and Regression Analysis	p. 249
Correlation Analysis	p. 249
Simple Linear Regression Analysis	p. 252
Financial Impact Analysis: Net Present Value, Return on Investment, and Payback Period	p. 259
Net Present Value	p. 259
Return on Investment	p. 262
Payback Period	p. 263
Financial Impact Analysis Exercise	p. 264
Data Collection Efforts	p. 265
Planning	p. 265
Calculating Sample Size	p. 267
Systematic Sampling	p. 272
Stratified Sampling	p. 273
Block Sampling	p. 274
Operational Definition	p. 274
Types of Data	p. 275
Net Present Value Exercise Answer	p. 277
Financial Impact Analysis Exercise Answer	p. 277
Index	p. 279
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Lean Six Sigma Service Excellence A Guide to Green Belt Certification and Bottom Line Improvement

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