Lean Six Sigma Statistics

Lean Six Sigma Statistics

Authors: Alastair Muir

Published: September 2005

eISBN: 9780071588935 0071588930 | ISBN: 9780071445856

Contents

Preface

Acknowledgments

Chapter 1. Manufacturing and Transactional Processes

1.1 Moving from Manufacturing to Services

1.2 This Book

1.3 The Effect of Variation on the Customers and Shareholders

1.4 Typical Problems in Transactional Projects

1.5 Change and Corporate Culture

Chapter 2. Evolution of Lean Six Sigma, R-DMAIC-S

2.1 Six Sigma—DMAIC

2.2 The Toyota Production System

2.3 Lean versus Six Sigma

2.4 Lean Six Sigma

2.5 The Product-Process Matrix

2.6 An Evolution of Service Offerings

Chapter 3. Recognize

3.1 Variation

3.2 Identify the Business Needs—Strategic Planning

3.3 Stakeholders—Shareholders and Customers

3.4 The Strategy of a Successful Company

3.5 The Balanced Scorecard

3.6 The Strategic Planning QFD

3.7 Handling Different Business Units

3.8 Finance Must Be Part of the Process

3.9 Reporting the Benefits—The Corporate Dashboard

3.10 Incentives, Compensation, and Certification

3.11 Elementary Financial Analyses

3.12 General Purpose Financial Statements

3.13 Cash Flow Reporting

3.14 Competitive Benchmarking

3.15 Horizontal and Vertical Financial Reporting

3.16 Ratio Analyses

3.17 Financial Liquidity and Efficiency Analysis

3.18 Profitability Analyses

3.19 Financial Benefits "Buckets"

3.20 The Recognize Checklist

Chapter 4. Define

4.1 Variance to Customer Want (VTW)

4.2 Defects—Six Sigma

4.3 Defects—Lean Six Sigma

4.4 The Causes of Large Span

4.5 Mortgage Processing Time—Win/Win

4.6 Scoping the Business Process and Defining Team Roles

4.7 Resistance

4.8 Managing the Project Team—the GRPI Model

4.9 The Define Checklist

Chapter 5. Measure

5.1 Level of Detail

5.2 Process Mapping

5.3 VA/NVA Process Mapping

5.4 Value Stream Mapping

5.5 Flow Rate, Cycle Time, and Inventory—Little's Law

5.6 Process Yield

5.7 Process Efficiency Mapping and the FMEA

5.8 Process Indicators (Ys)

5.9 Data Collection Plan

5.10 Cycle Time, Execution Time, and Delay Time

5.11 Data Types

5.12 Probability Distributions

5.13 Data Distributions from a Medical Clinic

5.14 Process Capability for Cycle Time

5.15 Hazard Plots for Cycle Time

5.16 Summarizing Defect Levels with Customer Want Dates

5.17 Hazard Plots with Customer Want Dates

5.18 Validate Your Assumptions

5.19 Gage R&R and the Data Audit

5.20 Does Your Data Make Logical Sense?

5.21 Capturing Rework

5.22 Bad Dates

5.23 Quantifying Overwritten Data

5.24 The Measure Checklist

Chapter 6. Analyze

6.1 Customer Demand and Business Capacity

6.2 Accidental Adversaries at Company X

6.3 Lessons from System Dynamics

6.4 Analyzing the Entire Problem

6.5 Establish Process Capability (P5-P95 Span)

6.6 Examples of P5-P95 Span on VTW

6.7 Elements of VTW-Customer Wants

6.8 ANOVA for Arrival Rates

6.9 GLM for Arrival Rates

6.10 Customer Interarrival Times

6.11 Transforming Weibull Data to Normality

6.12 Control Charts Using Transformed Weibull Data

6.13 Nonparametric Tests

6.14 Analyzing Production Capacity–Execution Time

6.15 Testing for Subgroups of Execution Times

6.16 Summarizing Subgroups of Execution Time

6.17 Measuring Customer Patience

6.18 Delay Time

6.19 The Consequences of Changing Priorities

6.20 Leveling Arrival Times and Execution Times

6.21 Calculation of Transactional Process Efficiency

6.22 Analysis of Transactional Process Efficiency

6.23 Binary Logistic Regression

6.24 The Analyze Checklist

Chapter 7. Improve

7.1 Different Types of Business Processes

7.2 Different Types of Solutions

7.3 Different Types of Customer Wants

7.4 Stratification of Customer and Business Subgroups

7.5 Lessons from Lean and ISO

7.6 Kaizen Events

7.7 Three Ms

7.8 Five Ss—Minimize Muda

7.9 Heijunka—Minimize Mura and Muri

7.10 Define the Queues

7.11 FIFO and Scheduling

7.12 Realistic Cycle Times

7.13 Stratifying the Business

7.14 Takt Time and Pitch

7.15 Kanban in Transactional Processes

7.16 Using DOE with the Model of the Process

7.17 Choosing Between Different Improvement Strategies

7.18 Establish Improved Capability

7.19 Prove the Improve

7.20 The Improve Checklist

Chapter 8. Control

8.1 Execution of the Improvement Strategy

8.2 Change Management and Resistance

8.3 Validate the Measurement System for Vital Xs

8.4 Tolerancing

8.5 Maintaining Your VTW Goal

8.6 Keeping the Process in Control

8.7 The Audit Plan for Project Close Out

8.8 The Control Checklist

Chapter 9. Sustain

9.1 Results

9.2 Maintaining the Six Sigma Program

9.3 Ongoing Financial Benefits

9.4 Reporting and Tracking Projects

9.5 Lean Six Sigma Corporate Dashboards

9.6 BB Assessment and Certification

9.7 Maintain a Body of Knowledge

9.8 Communication Planning

9.9 New Projects

9.10 The Sustain Checklist

Epilogue

Appendix A. Quantitative Risk Assessment

A.1 The Effect of Uncertainty on Estimation

A.2 Monte Carlo Simulation

A.3 Cycle Time for Insurance Policy Underwriting

A.4 The Financial Impact of Process Risk—Medical Claim Payments

A.5 Summary

Appendix B. Process Simulation

B.1 Assessing and Designing a Transactional System

B.2 Mapping and Modeling a Process

B.3 ProcessModel5

Appendix C. Statistical Analysis

C.1 Data Analysis

Index