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www.dbebooks.com - Free Books & magazines Getting Started in Six Sigma ffirs.qxd 9/20/04 10:29 AM Page i The Getting Started in Series Getting Started in Online Day Trading by Kassandra Bentley Getting Started in Asset Allocation by Bill Bresnan and Eric P. Gelb Getting Started in Online Investing by David L. Brown and Kassandra Bentley Getting Started in Investment Clubs by Marsha Bertrand Getting Started in Internet Auctions by Alan Elliott Getting Started in Stocks by Alvin D. Hall Getting Started in Mutual Funds by Alvin D. Hall Getting Started in Estate Planning by Kerry Hannon Getting Started in Online Personal Finance by Brad Hill Getting Started in 401(k) Investing by Paul Katzeff Getting Started in Internet Investing by Paul Katzeff Getting Started in Security Analysis by Peter J. Klein Getting Started in Global Investing by Robert P. Kreitler Getting Started in Futures by Todd Lofton Getting Started in Financial Information by Daniel Moreau and Tracey Longo Getting Started in Emerging Markets by Christopher Poillon Getting Started in Technical Analysis by Jack D. Schwager Getting Started in Hedge Funds by Daniel A. Strachman Getting Started in Options by Michael C. Thomsett Getting Started in Real Estate Investing by Michael C. Thomsett and Jean Freestone Thomsett Getting Started in Tax-Savvy Investing by Andrew Westhem and Don Korn Getting Started in Annuities by Gordon M. Williamson Getting Started in Bonds by Sharon Saltzgiver Wright Getting Started in Online Brokers by Kristine DeForge Getting Started in Project Management by Paula Martin and Karen Tate Getting Started in Six Sigma by Michael C. Thomsett ffirs.qxd 9/20/04 10:29 AM Page ii Getting Started in Six Sigma Michael C. Thomsett John Wiley & Sons, Inc. ffirs.qxd 9/20/04 10:29 AM Page iii Copyright © 2005 by Michael C. Thomsett. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services, or technical support, please contact our Customer Care Department within the United States at 800-762-2974, outside the United States at 317-572-3993 or fax 317-572-4002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our web site at www.wiley.com. Library of Congress Cataloging-in-Publication Data: Thomsett, Michael C. Getting started in six sigma / Michael C. Thomsett. p. cm. Includes index. ISBN 0-471-66811-7 (pbk.) 1. Total quality management. 2. Six sigma (Quality control standard) I. Title. HD62.15.T524 2005 658.4'013—dc22 2004013486 Printed in the United States of America. 10987654321 ffirs.qxd 9/20/04 10:29 AM Page iv v Introduction Striving for Perfection in an Imperfect World 1 Chapter 1 The Meaning of Six Sigma 5 Chapter 2 The Customer’s Point of View31 Chapter 3 Outside-In Thinking 61 Chapter 4 The Nature of Quality 91 Chapter 5 Product and Service Defects 117 Chapter 6 Improving Process Systems 139 Chapter 7 Striving for Consistency 165 Contents ftoc.qxd 9/20/04 10:30 AM Page v Chapter 8 Exceptions and Rules 185 Glossary 205 Notes 209 Index 211 CONTENTS vi ftoc.qxd 9/20/04 10:30 AM Page vi Getting Started in Six Sigma flast.qxd 9/20/04 10:30 AM Page vii flast.qxd 9/20/04 10:30 AM Page viii 1 Striving for Perfection in an Imperfect World I s the goal within the organization to be perfect in every respect? Perfection is elusive, of course, but it can and does represent an enviable goal. More impor- tantly, the concept of perfection helps everyone in the cor- poration to develop a working model to maximize excellent service at every level. This is not a theory alone; the suggestion that you can work with other employees and managers to improve service is a crucial requirement in a competitive market. Thus, Six Sigma, as an integrated approach to creating ef- fective working models, is much more than a tool for im- proving productivity, creating internal teamwork, or reducing costs. In fact, it serves as a model for corporate attitude that goes beyond the whole team approach that has permeated corporate project work for so many years. Two attributes need to be present in order for any quality control program to work. First, that program can- not be isolated or defined as a function that occurs in the plant alone, or in the office, department, or subsidiary. It has to be a working philosophy that applies from the boardroom to the mail room; everyone can participate in an overall quality control approach to corporate success. In fact, the real success stories in the corporate world have been able to demonstrate effective, corporate-wide quality ideals. Introduction ccc_thomsett_intro_1-4.qxd 9/17/04 5:35 PM Page 1 [...]... unto itself Six Sigma encompasses the entire corpora- The Origins of Six Sigma tion as a single team and is aimed at removing that sense of isolation The concept of Six Sigma began at Motorola in the 1980s An engineer named Mikel Harry began analyzing variation in outcomes in the company’s internal procedures, and realized that by measuring variation it would be possible to improve working systems... work based on a model (Business Process Model) describing how work moves from step to step through the organization Like all other specialized processes, Six Sigma involves the use of a series of specialized terms They have specific meaning and are important in distinguishing the roles that people play in executing the successful Six Sigma procedure The concept of Six Sigma begins with a process model... structure of the Six Sigma organization can be more abbreviated Key Point The multiple layers and titles in a Six Sigma operation often can be reduced or combined The formalized structure allows for flexibility, so that projects of all sizes can be managed appropriately within the Six Sigma approach The organization of the overall Six Sigma system is summarized in Figure 1.4 PARTICIPANT WITHIN SIX SIGMA Many... variance points, timeline, and documents ing process changes, merging two or more procedures, or developing new procedures The flowchart also serves as an excellent training tool It provides new employees with a view in the context of their roles in a larger procedure, as well as providing steps in sequence The flowchart identifies each element within the process from beginning to end so that everyone involved... of a Six Sigma process, the provider of goals to be met by the team 22 THE MEANING OF SIX SIGMA TABLE 1.2 Checklist, Leadership Council Responsibilities Responsibility Description of Duties 1 Define the purpose of the Six Sigma Program Definition is the key to initiating any project; the council begins by identifying the reasons for undertaking a specific activity 2 Explain how the result is going to... place emphasis on the points where a step is completed and the process then moves elsewhere This is where problems are most likely to arise 11 12 THE MEANING OF SIX SIGMA Processes Input Output Processes variance points FIGURE 1.2 Model horizontal flowchart with variance points These include a failure to act in a timely manner, processing with incomplete data, interpretations containing errors, and similar,... labels have evolved over the years that Six Sigma has been in use These labels originated at founding com- Participant within Six Sigma Leadership Council goal definition Sponsor problem solving Implementation Leader oversight 25 process owner the individual who takes on responsibility for a process after a Six Sigma team has completed its work mediation and consulting Coach Team Leader supervision Team... apply in the Six Sigma environment For the quality control program to work well, the reporting chain has to be suspended There are seven specific responsibilities or “role areas” in the Six Sigma program These are: 1 Leadership A leadership team or council defines the goals and objectives in the Six Sigma process Just as a corporate leader sets a tone and course to achieve an objective, the Six Sigma. .. defects in half, you are going to know your outcomes have improved, so what purpose does Six Sigma provide beyond the obvious scorekeeping? As the preceding example demonstrates, improvement in quality can be specifically measured In practice, you may be dealing with a much greater volume of outcomes, and the incremental rate of success is likely to be smaller than that shown in the example; and Six Sigma. .. operating units 5 Mediate any conflicts or disagreements within the team or with outside areas Individuals within one team may find themselves in conflict with one another; or the work of the team might be in conflict with another team The sponsor is a coordinator, responsible for solving this problem of the implementation plan and solving problems as they arise; training as needed; and assisting sponsors in . magazines Getting Started in Six Sigma ffirs.qxd 9/20/04 10:29 AM Page i The Getting Started in Series Getting Started in Online Day Trading. Peter J. Klein Getting Started in Global Investing by Robert P. Kreitler Getting Started in Futures by Todd Lofton Getting Started in Financial Information