The Lean Six Sigma Guide to Doing More With Less: Cut Costs, Reduce Waste, and Lower Your Overhead

The Lean Six Sigma Guide to Doing More With Less: Cut Costs, Reduce Waste, and Lower Your Overhead......Page 1
Contents......Page 7
Foreword......Page 13
Preface......Page 17
Acknowledgments......Page 23
CHAPTER 1: Why Use Lean Six Sigma to Reduce Cost?......Page 25
The Alloy of High Performance: Why Choose Lean Six Sigma to Reduce Cost......Page 30
Lean Six Sigma versus Traditional Cost-Cutting Tactics......Page 33
Emerging Stronger Than Ever......Page 38
SPOTLIGHT #1: How to Use This Book......Page 41
Overview of Part I : Process Cost Reduction—a Focus on the Tools of Waste Elimination......Page 42
Overview of Part I I : Enterprise Cost Reduction—a Focus on Value, Speed, Agility, and Competitive Advantage......Page 43
Overview of Part I I I : Accelerating Deployment Returns—Getting More, Faster, from a Lean Six Sigma Deployment......Page 44
PART I: Process Cost Reduction: A Focus on Waste Elimination......Page 47
CHAPTER 2: Find Cost Reduction Opportunities in Waste......Page 49
The Seven Common Faces of Waste: TIMWOOD......Page 51
Using the Full LSS Toolkit to Drive Cost Reduction......Page 61
SPOTLIGHT #2: Special Tips for Nonmanufacturing Processes......Page 63
Key Success Factors in Reducing Costs in Services and Retail......Page 64
Which Methodology Is Right for Your Project?......Page 69
Identifying the Players and Their Roles......Page 71
CHAPTER 3: Use the Voice of the Customer to Identify Cost-Cutting Opportunities......Page 75
Customer Types and Their Needs......Page 76
Collecting Data on Customer Needs......Page 77
Getting Specific about Customer Needs......Page 81
Avoiding Misinterpretations......Page 84
Conclusion......Page 88
CHAPTER 4: Make Processes Transparent to Expose Waste......Page 89
How to Define the Boundaries through SIPOC Diagrams......Page 91
Using Value Stream Maps to Achieve Transparency......Page 93
Conclusion......Page 106
CHAPTER 5: Measure Process Efficiency......Page 107
Process Cycle Efficiency: The Key Metric of Process Time and Process Cost......Page 108
Little's Law: Understanding the Levers for Improving Process Speed......Page 112
The WIP Cap Method: How Limiting WIP Can Increase Process Speed and Reduce Costs......Page 114
Using PCE and Little's Law to Drive Cost Reduction......Page 119
CHAPTER 6: Improve Your Analysis Skills......Page 121
Analysis Skill #1: Learning to "Read" Variation......Page 122
Analysis Skill #2: Digging Out Root Causes......Page 131
Analysis Skill #3: Establishing Relationships between Factors......Page 133
Conclusion......Page 138
CHAPTER 7: Make Rapid Improvements through Kaizens......Page 141
Quick Overview: The Kaizen Approach......Page 143
When Should You Use Kaizens in Cost Reduction Projects?......Page 144
Seven Keys to Kaizen Success......Page 148
Conclusion......Page 153
PART II: Raising the Stakes: Reducing Costs at an Enterprise Level......Page 155
CHAPTER 8: Think Transformation, Not Just Improvement......Page 157
Attain a Proper Understanding of the Extent of the Opportunity......Page 159
Consciously Choose a Path to Capture the Opportunity......Page 162
Plan for a Transformation Journey......Page 168
Leadership Challenges in Leading a Transformation......Page 175
Conclusion......Page 176
SPOTLIGHT #4: Transformation at Owens-Illinois......Page 179
CHAPTER 9: Unlock the Secrets to Speed and Flexibility......Page 183
Alignment and Analytics......Page 184
A Model of Speed and Agility......Page 186
Economic Order Quantity (EOQ)—The First 100 Years......Page 189
Augmenting EOQ with Lean Analytics......Page 191
The Equations in Action......Page 197
Conclusion......Page 200
CHAPTER 10: Reduce the Cost of Complexity......Page 201
The Hidden Cost of Added Offerings on Processes......Page 203
Assessing Complexity in Your Business: A Holistic View......Page 206
Highlights of the Complexity Analysis Process......Page 207
Complexity Reduction as the Gateway to Transformation......Page 219
Conclusion......Page 220
CHAPTER 11: Look Outside Your Four Walls to Lower Costs Inside......Page 221
What Is an Extended Enterprise?......Page 223
Working on the Supplier End of the Extended Enterprise......Page 228
What to Do When You're the Supplier: Extending Your Enterprise Downstream......Page 232
Conclusion......Page 235
PART III: Speeding Up Deployment Returns: Strategies for Getting More, Faster, from a Lean Six Sigma Deployment......Page 237
CHAPTER 12: Create a Pipeline of Cost Improvement Projects......Page 239
Developing Rigor in Project Identification and Selection......Page 241
From First-Time to All the Time: Shifting from a One-Time Event to an Ongoing System of Pipeline Management......Page 250
Conclusion: Maintaining a Dynamic Pipeline......Page 254
Option 1: Value Driver Trees......Page 257
Option 3: Economic Profit......Page 261
Option 4: EP Sensitivity Analyses......Page 263
Value Driver Example......Page 267
CHAPTER 13: Smooth the Path through Change......Page 271
Change Readiness Assessments......Page 272
Leading versus Managing the Change......Page 274
Upgrading Your Communication Plan......Page 277
Process Ownership and Cost Accountability......Page 283
Conclusion: Restoring Faith, Hope, and Belief......Page 284
CHAPTER 14: Establishing a Center of Excellence......Page 285
What Is a CoE and What Does It Do?......Page 287
Focus #1: Performance Management......Page 289
Focus #2: Replication: Copy and Paste Your Cost Savings......Page 294
How Can a CoE Fit into an Organization?......Page 297
Weaving the CoE into Strategic Planning......Page 301
Conclusion......Page 303
CHAPTER 15: Gaining New Perspectives on Deployment Cost and Speed Opportunities......Page 305
Looking for Focus and Flexibility in Deployment......Page 306
Focusing Deployments on Business Issues......Page 307
Flexibility in Building Skills......Page 310
Conclusion......Page 321
CHAPTER 16: Reenergizing a Legacy Program......Page 323
Why Deployments Lose Steam......Page 324
Building a Steam Engine: Performance Management......Page 330
Process Ownership: The Partner of Performance Management......Page 331
How to Reenergize a Deployment......Page 335
Conclusion......Page 342
Index......Page 343