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The
Six Sigma
Handbook
A Complete Guide for Green Belts,
Black Belts, and Managers at All Levels
Thomas Pyzdek
Paul A. Keller
Third Edition
New York Chicago San Francisco
Lisbon London Madrid Mexico City
Milan New Delhi San Juan
Seoul Singapore Sydney Toronto
Copyright © 2010, 2003, 2001 by The McGraw-Hill Companies, Inc.. All rights reserved. Except as permitted under the
United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any
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ISBN: 978-0-07-162337-7
MHID: 0-07-162337-X
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 Contents
Preface
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
xi
Part I
Six Sigma Implementation and Management
1
Building the Responsive Six Sigma Organization
. . . . . . . . . . . . . . .
3
What Is Six Sigma?
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Why Six Sigma?
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
The Six Sigma Philosophy
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
The Change Imperative
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Implementing Six Sigma
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
Timetable
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Infrastructure
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Integrating Six Sigma and Related Initiatives
. . . . . . . . . . . . . .
32
Deployment to the Supply Chain
. . . . . . . . . . . . . . . . . . . . . . . .
34
Communications and Awareness
. . . . . . . . . . . . . . . . . . . . . . . . .
36
2
Recognizing Opportunity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43
Becoming a Customer and Market-Driven Enterprise
. . . . . . . . . . . . .
44
Elements of the Transformed Organization
. . . . . . . . . . . . . . . .
46
Strategies for Communicating with
Customers and Employees
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
48
Survey Development Case Study
. . . . . . . . . . . . . . . . . . . . . . . .
52
Calculating the Value of Customer Retention
. . . . . . . . . . . . . .
58
Customer Expectations, Priorities, Needs, and “Voice”
. . . . . . . . . . . .
60
Quality Function Deployment
. . . . . . . . . . . . . . . . . . . . . . . . . . .
61
The Six Sigma Process Enterprise
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
65
The Source of Confl ict
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67
A Resolution to the Confl ict
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67
Six Sigma and the Process Enterprise
. . . . . . . . . . . . . . . . . . . . .
70
Linking Six Sigma Projects to Strategies
. . . . . . . . . . . . . . . . . . . . . . . . .
71
The Strategy Deployment Matrix
. . . . . . . . . . . . . . . . . . . . . . . . .
71
Deploying Differentiators to Operations
. . . . . . . . . . . . . . . . . .
74
Deploying Operations Plans to Projects
. . . . . . . . . . . . . . . . . . .
75
Interpretation
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
76
Linking Customer Demands to Budgets
. . . . . . . . . . . . . . . . . . .
77
Structured Decision-Making
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77
iii
iv
Contents
3
Integrating Six Sigma with Other Information
Systems Technologies
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Data Warehousing
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
OLAP
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
110
Data Mining
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
110
OLAP, Data Mining, and Six Sigma
. . . . . . . . . . . . . . . . . . . . . . .
112
Benchmarking
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
112
The Benchmarking Process
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
112
Getting Started with Benchmarking
. . . . . . . . . . . . . . . . . . . . . .
113
Why Benchmarking Efforts Fail
. . . . . . . . . . . . . . . . . . . . . . . . . .
114
The Benefi ts of Benchmarking
. . . . . . . . . . . . . . . . . . . . . . . . . . .
116
Some Dangers of Benchmarking
. . . . . . . . . . . . . . . . . . . . . . . . .
116
4
Choosing the Right Projects
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
117
Types of Projects
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
117
Analyzing Project Candidates
. . . . . . . . . . . . . . . . . . . . . . . . . . .
118
Using Pareto Analysis to Identify
Lessons-Learned Capture and Replication
. . . . . . . . . . . . . . . . . 143
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