1st Edition

Operational Excellence
Using Lean Six Sigma to Translate Customer Value through Global Supply Chains




ISBN 9781420062502
Published December 13, 2007 by Auerbach Publications
664 Pages 238 B/W Illustrations

USD $160.00

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Book Description

To successfully compete in today’s global marketplace, organizations can and must do more to improve their internal operational efficiencies. Operational Excellence: Using Lean Six Sigma to Translate Customer Value through Global Supply Chains consolidates hundreds of tools and methods into 110 key concepts designed to translate the “voice of the customer” throughout global supply chains, dramatically improving productivity and shareholder economic value added (EVA). Recognizing failure is often self-induced through poor leadership coupled with an inability to form and effectively execute a strategic vision, this book operates from three premises—

                                      

  1. Organizations have the power to increase organizational competitiveness in an era of globalization through the application of Lean Six Sigma
  2. Operational performance directly correlates with an organization’s financial, operational and resultant productivity, as well as with shareholder EVA metrics, and  geographical, cultural, technological and economic isolation
  3. Value-adding activities and disciplines such as Lean Six Sigma are not exclusive to any one country or region and do not always depend upon cost considerations

A Practical Tool for Real World Application

 For organizations seeking a source for improving manufacturing and service operations, this bookeffectively delivers. Divided into 5 successive sections, it begins with adaptation strategies for global competitiveness, then delves into implementations to enhance productivity while targeting customer needs and value expectations. Finally, the author explains how to establish information-sharing throughout global supply chains, along with the role of IT. A useful tool for real world application, the volume’s 20 chapters also contain more than 450 figures and roadmaps. As organizations understand the interrelationships of the supply chains, their operational systems will excel at meeting or exceeding customer expectations in this age of globalization.

Table of Contents

Adapting Strategies for Global
Competitiveness
Enhancing Global Competitiveness
Overview
Current Trends in Operations Management
How the Competitive Environment Transforms Operational Strategy
Developing Adapting Strategies to Enhance Operational Capability
Linking Operational Strategy to Strategic Goals and Objectives
Global Metrics and Operational Maturity
Internal and External Benchmarking
Summary
Suggested Reading
Organizational Change in a Competitive World
Overview
What Is Organizational Change?
Understanding Organizational Values
Building Organizational Capability
Managing Organizational Change
Integrating Operational Initiatives
Deploying Initiatives across an Organization
Building High-Performance Teams
Deploying Continuous Improvement Teams
Deploying Lean Systems
Deploying Six Sigma Quality
Integrating and Fine-Tuning Initiatives
Deploying Design Excellence
Deploying Information Technology Excellence
Deploying Customer Excellence
Summary
Suggested Reading
Understanding the Voice of the Customer (VOC)
Overview
Marketing’s Influence on Internal Operations
Important Marketing Activities
Estimating New Product or Service Demand
Using Marketing Information to Estimate Sales
Understanding Customer Needs and Value
Market Segmentation
Measuring the VOC
Translating the VOC Using Quality Function Deployment
Exchanging Value in a Competitive World
Summary
Suggested Readings
Translating Customer Value
Elements into Products, Services,
and Workflow Systems
Designing for Customer Value Using Design for Six Sigma
(DFSS)
Overview
Major Objectives of the Design Process
Concurrent Engineering Methods in Design
CE Benefits
Ten Key Steps to Implement CE
Applying Design for Manufacturing Methods
Ten Key Steps to Implement DFM
Key Tasks of the Design Process
Concept Phase
Design Phase
Target Costing
Prototype Phase
Pilot Phase
Launch Phase
How the Product Life Cycle Impacts the Design Process
Risk Assessment
Design for Six Sigma (DFSS)
Overview of the Five DFSS Phases
Identify
Design
Optimize
Validate
Incorporate
Design Standards for Global Competitiveness
Impact of Mass Customization on Design
Outsourcing Design Workflows
Summary
Suggested Reading
Using Lean Methods to Design for Process Excellence
Overview
Designing Process Workflows
Workflow Modeling
Simulation
Queuing Analysis
Linear Programming
Process Failure Mode and Effects Analysis (PFMEA)
How to Improve the Work Environment
How to Develop High-Performance Work Teams
How to Simplify and Standardize Work
How to Develop an Effective Training Program
Summary
Suggested Reading
Making Value Flow through a Process
Overview
What Is a Lean System?
Mapping and Analyzing Customer Value
Balancing Flow through the System
Improving Operational Efficiency
Summary
Suggested Reading
Measuring and Improving Productivity
Overview
Creating Shareholder Value
Aligning Performance Metrics with Strategic Objectives
How to Improve Productivity
Aligning Operational Improvements with Strategy
Summary
Suggested Reading
Operations Planning, Management,
and Control
Capturing Customer Demand
Overview
What Is Demand Management
How to Build Quantitative Forecasting Models
Time Series Models
Trend Plot
Decomposition Models
Moving Average Models
Simple Exponential Smoothing
Double Exponential Smoothing (Holt’s Method)
Triple Exponential Smoothing (Winter’s Method)
Autoregressive Integrated Moving Average (ARIMA) Models, or Box-
Jenkins Methodology
Regression Models
Summary
Suggested Reading
Expanding Global Capacity
Overview
How to Plan Capacity Based on System Forecasts
Creating Virtual Capacity
How to Improve Capacity Utilization
Managing Capacity with Insourcing and Outsourcing
Summary
Suggested Reading
Using Hybrid Decentralization to Increase Productivity
Overview
Applying Hybrid Decentralization to Facility Location
How to Locate Facilities across the World
Facility Location Using Simple Rating Methods
Facility Location Using Linear Programming
Facility Location Using Regression Models
Managing Facility Location Risk
How to Manage Facilities to Ensure Availability
Summary
Suggested Reading
Integrating Demand and Supply through Sales and Operations
Planning
Overview
How the S&OP Team Integrates Strategy with Operations
Key Success Characteristics of a Successful S&OP Process
Key Activities of the S&OP Team
Summary
Suggested Reading
Lean Scheduling Methods
Overview
Operations Scheduling.
Scheduling Algorithms
Using Pull Scheduling to Increase Flow
Summary
Suggested Reading
Dynamic MRPII
Overview
MRPII and Bill of Material (BOM) Relationship
How an MRPII System Functions
Creating a Pull System Using Hybrid MRPII and Kanban
Quick Response Methods to Support Hybrid MRPII
Summary
Suggested Reading
Strategic Inventory Management
Overview
Measuring Inventory Value
Why Is Inventory Useful?
Developing Models to Systematically Reduce Inventory
Cycle-Counting Systems
Excess and Obsolete Inventory Management
Unnecessary Product and Component Proliferation
Summary
Suggested Reading
Collecting, Analyzing, and Sharing
Information across a Global Supply Chain
Agile Project Management and Workflow Design
Overview
Business Process Management Suite (BMPS)
Business Process Management (BPM)
Business Process Modeling and Analyses (BPMA)
Business Intelligence (BI)
Business Activity Monitoring (BAM)
Enterprise Application Integration (EAI)
Workflow Management (WM)
Agile Project Management (APM
Summary
Suggested Reading
Integrating Six Sigma Methods with Operational Strategy
Overview
Deploying the Six Sigma Improvement Model
Define Phase: Basic Tools
SIPOC
Project Charter
Quality Improvement Team
Measurement Phase: Basic Tools
Measurement Systems Analysis (MSA)
Capability
Cause-and-Effect (C&E) Diagram and Matrix
Data Collection Activities
Statistical Sampling
Analyze Phase: Basic Quality Tools
Process Maps
Histograms
Pareto Charts
Box Plots
Scatter Plots
Time Series Plots
Analyze Phase: Advanced Quality Tools
Hypothesis Testing
Statistical Risk
Distribution Fitting (Normality)
Tests of Means and Medians
Tests of Proportions
Contingency Tables
Equal Variance Tests
One-Way Analysis of Variance (ANOVA) Tests
Multi-Vari Charts
Correlation
Simple Linear Regression
Improve Phase: Advanced Quality Tools
Full Factorial Designs
2k Experimental Designs
Fractional Factorial Designs
Response Surface Designs
Control Phase: Basic Quality Tools
Control Charts
Quality Control Plan
Summary
Suggested Reading
Identifying Productivity Opportunities with Operational
Assessments
Overview
Aligning Operational Assessments with Strategy
Preparing for an Operational Assessment
Conducting an Operational Assessment
Analyzing the Assessment Findings
Project Deployment and Execution
Summary
Suggested Reading
Executing Projects with Multicultural Teams
Overview
Building Globally Diverse Teams
Project Planning
Estimating the Critical Path Using PERT
Project Management
Managing Project Risk
Summary
Suggested Reading
Global Supply-Chain Management
Integration and Control
Value Integration through Global Supply Chains
Overview
Value Integration across the Global Supply Chain
Several Important Supply-Chain Functions
Important Financial and Operational Metrics
E-Supply-Chain Evolution
Common Process Breakdowns in Supply Chains
Summary
Suggested Reading
Increasing Organizational Competitiveness through
Standardization
Overview
Supply-Chain Operations Reference (SCOR) Model
The International Standards Organization (ISO
Financial Accounting Standards
Sarbanes–Oxley Act of 2002
Occupational Safety and Health Administration (OSHA)
Food and Drug Administration (FDA)
Automotive Industry Action Group (AIAG)
Planning Phase
Product Design Phase
Process Design Phase
Product and Process Validation Phase
Production Phase, Feedback, and Assessment
Malcolm Baldrige Award
Creating Metric Dashboards
Implementing Effective Process Controls
Summary
Suggested Reading
Conclusion

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