Operational Excellence

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

By James William Martin

© 2007 – Auerbach Publications

664 pages | 238 B/W Illus.

Purchasing Options:
Hardback: 9781420062502
pub: 2007-12-13
US Dollars$121.95

About the Book

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


Enhancing Global Competitiveness


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


Suggested Reading

Organizational Change in a Competitive World


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


Suggested Reading

Understanding the Voice of the Customer (VOC)


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


Suggested Readings

Translating Customer Value

Elements into Products, Services,

and Workflow Systems

Designing for Customer Value Using Design for Six Sigma



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






Design Standards for Global Competitiveness

Impact of Mass Customization on Design

Outsourcing Design Workflows


Suggested Reading

Using Lean Methods to Design for Process Excellence


Designing Process Workflows

Workflow Modeling


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


Suggested Reading

Making Value Flow through a Process


What Is a Lean System?

Mapping and Analyzing Customer Value

Balancing Flow through the System

Improving Operational Efficiency


Suggested Reading

Measuring and Improving Productivity


Creating Shareholder Value

Aligning Performance Metrics with Strategic Objectives

How to Improve Productivity

Aligning Operational Improvements with Strategy


Suggested Reading

Operations Planning, Management,

and Control

Capturing Customer Demand


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


Suggested Reading

Expanding Global Capacity


How to Plan Capacity Based on System Forecasts

Creating Virtual Capacity

How to Improve Capacity Utilization

Managing Capacity with Insourcing and Outsourcing


Suggested Reading

Using Hybrid Decentralization to Increase Productivity


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


Suggested Reading

Integrating Demand and Supply through Sales and Operations



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


Suggested Reading

Lean Scheduling Methods


Operations Scheduling.

Scheduling Algorithms

Using Pull Scheduling to Increase Flow


Suggested Reading

Dynamic MRPII


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


Suggested Reading

Strategic Inventory Management


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


Suggested Reading

Collecting, Analyzing, and Sharing

Information across a Global Supply Chain

Agile Project Management and Workflow Design


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


Suggested Reading

Integrating Six Sigma Methods with Operational Strategy


Deploying the Six Sigma Improvement Model

Define Phase: Basic Tools


Project Charter

Quality Improvement Team

Measurement Phase: Basic Tools

Measurement Systems Analysis (MSA)


Cause-and-Effect (C&E) Diagram and Matrix

Data Collection Activities

Statistical Sampling

Analyze Phase: Basic Quality Tools

Process Maps


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


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


Suggested Reading

Identifying Productivity Opportunities with Operational



Aligning Operational Assessments with Strategy

Preparing for an Operational Assessment

Conducting an Operational Assessment

Analyzing the Assessment Findings

Project Deployment and Execution


Suggested Reading

Executing Projects with Multicultural Teams


Building Globally Diverse Teams

Project Planning

Estimating the Critical Path Using PERT

Project Management

Managing Project Risk


Suggested Reading

Global Supply-Chain Management

Integration and Control

Value Integration through Global Supply Chains


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


Suggested Reading

Increasing Organizational Competitiveness through



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


Suggested Reading


Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Quality Control
BUSINESS & ECONOMICS / Industries / Manufacturing Industries
BUSINESS & ECONOMICS / Purchasing & Buying