Enterprise Excellence: A Practical Guide to World-Class Competition PDF
Preview Enterprise Excellence: A Practical Guide to World-Class Competition
FM_1 09/30/2008 1 ENTERPRISE EXCELLENCE A Practical Guide to World-Class Competition NORMAND L. FRIGON HARRY K. JACKSON JR. JOHN WILEY & SONS, INC. Enterprise Excellence: A Practical Guide to World-Class Competition N. L. Frigon and H. K. Jackson Jr. Copyright © 2009 by Normand L. Frigon & Harry K. Jackson Jr. ISBN: 978-0-470-27473-6 FM_1 09/30/2008 2 Thisbookisprintedonacid-freepaper.(cid:2)1 Copyright#2009byNormandL.Frigon&HarryK.JacksonJr.Allrightsreserved PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey PublishedsimultaneouslyinCanada Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmittedinanyformor byanymeans,electronic,mechanical,photocopying,recording,scanning,orotherwise,exceptas permittedunderSection107or108ofthe1976UnitedStatesCopyrightAct,withouteithertheprior writtenpermissionofthePublisher,orauthorizationthroughpaymentoftheappropriateper-copyfee totheCopyrightClearanceCenter,222RosewoodDrive,Danvers,MA01923,(978)750-8400,fax (978)646-8600,oronthewebatwww.copyright.com.RequeststothePublisherforpermissionshould beaddressedtothePermissionsDepartment,JohnWiley&Sons,Inc.,111RiverStreet,Hoboken, NJ07030,(201)748-6011,fax(201)748-6008,oronlineatwww.wiley.com/go/permissions. 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Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappearsinprintmay notbeavailableinelectronicbooks.FormoreinformationaboutWileyproducts,visitourwebsiteat www.wiley.com. LibraryofCongressCataloging-in-PublicationData: ISBN:978-0-470-27473-6 Frigon,NormandL. Enterpriseexcellence:aguidetoworldclasscompetition/Normand L.Frigon,HarryK.JacksonJr. p.cm. ISBN978-0-470-27473-6(cloth) 1.Management. 2.Organizationaleffectiveness. I.Jackson,HarryK. II.Title. HD31.F7562009 658.40013–dc22 2008022804 PrintedintheUnitedStatesofAmerica 10 9 8 7 6 5 4 3 2 1 FM_1 09/30/2008 3 ThisbookisdedicatedtoLucilleFrigonandSallyBaron. Theirpatience,love,andsupportmadethisbookpossible. FM_1 09/30/2008 5 CONTENTS FOREWORD ix ACKNOWLEDGMENTS xi 1 Introduction 1 Law of Unintended Consequences, 1 Enterprise Excellence, 3 Enterprise Excellence Model, 7 Continuous Measurable Improvement, 10 Achieving Enterprise Excellence, 12 Key Points, 15 2 Managing and Leading Enterprise Excellence 20 Management Systems, 21 Leading Enterprise Excellence, 28 Understanding and Overcoming Resistance to Change, 54 Key Points, 73 3 Enterprise Excellence Deployment 79 Enterprise Excellence Infrastructure, 80 Deployment Measurement, Analysis, and Reporting, 83 Enterprise Excellence Deployment Planning, 104 Establishing Enterprise Excellence Policies, Guidelines, and Infrastructure, 136 Key Points, 139 v FM_1 09/30/2008 6 vi CONTENTS 4 Enterprise Excellence Implementation 144 Management and Operations Plans, 144 Enterprise Excellence Projects, 145 Enterprise Excellence Project Decision Process, 149 Planning the Enterprise Excellence Project, 154 Tollgate Reviews, 164 Project Notebook, 169 Key Points, 169 5 Listening to the Voice of the Customer 176 Voice of the Customer (VOC), 177 Quality Function Deployment, 180 CDOV Process, 184 Key Points, 207 6 Define: Knowing and Understanding Your Processes 212 Understanding Process Variation, 214 Acquire All Process Documentation, 224 Process Mapping, 225 Value Stream Mapping, 237 Value Stream Analysis, 244 Failure Modes and Effects Analysis, 253 Key Points, 269 7 Measure 274 Process Measurement, 274 Statistical Process Control, 277 Statistical Process Control Charts, 281 Types of Control Charts and Applications, 285 Attribute Control Charts, 298 Process Capability Analysis, 307 Measurement Systems Evaluation (MSE), 311 Gage Reproducibility and Repeatability (R&R), 315 Transactional MSE, 323 Key Points, 326 8 Analyze and Improve Effectiveness 329 Analysis of Variance, 329 One-Way ANOVA, 331 Two-Way ANOVA, 340 Multivariate ANOVA, 349 Linear Contrasts, 363 Design of Experiments, 370 Key Points, 393 FM_1 09/30/2008 7 CONTENTS vii 9 Analyzing and Improving Efficiency 394 5S Process, 396 The Seven Forms of Waste, 399 Takt Time, 403 Cycle Time, 405 Routing Analysis, 405 Spaghetti Diagram, 406 Work Content Analysis, 407 Process Availability Analysis, 411 Process Yield Measures, 412 Calculating Cycle Time, 414 Just-in-Time, 416 Kanban, 420 Mixed-Model Production, 428 A, B, C Material Handling, 428 Workable Work, 429 Workload Balancing, 430 One-Piece Flow, 432 Work Cell Design, 434 Kanban Sizing, 435 Key Points, 436 10 Control and Continuous Measurable Improvement 438 Management Systems, 439 Statistical Process Control, 440 Visual Controls, 441 Graphic Work Instructions, 443 Mistake-Proofing (Poka-Yoke), 443 Single-Minute Exchange of Die (SMED), 444 Total Productive Maintenance, 446 Rapid Improvement Events, 449 Continuous Measurable Improvement, 449 Key Points, 450 Appendix A: Basic Math Symbols 454 Appendix B: List of Acronyms 456 Glossary 464 Bibliography 475 Index 480 FM_1 09/30/2008 9 FOREWORD Whenaskedtoprovide aforewordtothis uniqueapproachtoenterpriseimple- mentationofLeanSixSigma,Ijumpedattheopportunity.Inthislatestbookby Dr. Frigon and Mr. Jackson, we are taken on a journey that begins with a cus- tomer’sneedsandwalksusthroughwhatanorganizationcommittedtolearning and customer goals can do to blaze a path towards recognized excellence. A diverse group of experts and practitioners provides the reader with a host of well-definedandacceptedmethodologies,alongwiththeauthors’ownpersonal touch. What makes this book exceptional, however, is the way that it provides depthofdetailwithasuccessfulsystemicdeploymentofLeanSixSigmaproto- cols withinthe Department of Defense as well as commercial enterprises. As a leader who has embraced the process and methodology of Enterprise Excel- lence,itisespeciallygratifyingtoknowthatitsimpactbringsustoanewappre- ciationofthe‘‘bottomline.’’ Almost every Six Sigma or Lean Six Sigma publication drives the student/ readertolearnaboutandfocusonspecificareasofdiscipline,achievingareturn oninvestment,bothintermsofhittingbottomlinegoalsaswellaschangingthe cultureofanorganization.Whiletheformerisastrongmotivation,themilitary looks at efficiencies and effectiveness not only in dollars and cents but in the deliveryofproductsandservicesinwhatcanliterallybehostileenvironments. TheconceptofEnterpriseExcellencethatledtothefoundationandeventual frameworkfortheArmy’sArmamentsResearch,DevelopmentandEngineering Center (ARDEC) originated in 2003 with Dr. Frigon and Mr. Jackson as the principal authors. Enterprise Excellence served as a core for the leadership at the ARDEC to develop stategy over the next few years; survived the Base Re- alignmentandClosureCommittee;andnowservesasaGovernmentbenchmark forhowto’’getit right.’’Ithasbeenan unbelievableexperience over theyears tohelpdeveloptheconceptandpushasystemically-deployedandwell-defined ix FM_1 09/30/2008 10 x FOREWORD process that led to the Malcolm Baldrige National Quality Award for the ARDECin2008. The book provides insights into the difficulties faced by many other indus- tries on similar journeys, all of which must be overcome if successful deploy- ment is to be achieved. Dr. Frigon and Mr. Jackson do a masterful job of providingthekeystosuccessinovercomingthesemanyobstacles,demonstrat- ingthetruecommitmentofleaderswhoreallywanttochangethestatusquo. Continuous commitment to excellence is only part of the story. It is the understanding of the underlying principles of continuous process improvement andadesiretoalwaysdobetterthatreallytellthestory.VoiceoftheCustomer, LeanSixSigma,andastronghybridqualitymanagementsystemprovidedisci- pline,whileleadershipprovidesthefocus. Dr.FrigonandMr.Jacksonclearlyhighlightthegovernment’sabilitytoem- brace the Enterprise Excellence concept, import best practices, and adapt them with a solid government/industry partnership–forging the vision and turning it intoreality.Ihighlyrecommendthisuniquebook,whichfusesthecombination of methods and techniques, and connects with the human commitment that bringsthecontinuousimprovementmodeltoanewlevel. PaulChiodo FormerDirector,QualityEvaluationandSystemsAssurance ArmamentsResearch,DevelopmentandEngineeringCenter FM_1 09/30/2008 11 ACKNOWLEDGMENTS This book is the result of the accumulation of our life experiences, both in the workplace and in the business of life. In our journeys we have struggled to understand and to apply the many tools that lead to Enterprise Excellence. We havefoundthereisnosingletoolormethodologyappropriateforallsituations, all industries, or business cultures. We discovered, however, that a holistic ap- proachtomanagingourenterprises,usingthemostappropriatetoolsandtechni- questoachieveourgoals,leadstoexcellenceandenablesustothrive. We would like to acknowledge VSE Corporation, whose foresight and in- spirationalleadershipprovidedtheplatformforlaunchingEnterpriseExcellence. We would also like to acknowledge Bill Barkau, Roy Weber, Mark Wood- house,RobertScottandPaulChiodo.Thesemanagement,qualityandreliability professionals,whoseprofessionalism,depthofknowledge,andexperiencehave made significant contributions to the discipline of continuous measureable im- provement,havehadasignificantimpactupontheenterprisecapabilitiesofthe country,ourArmedForces,andonthisbook. We would like to thank the publishing and editing team at John Wiley and Sons,especiallyRobertArgentieri,DanielMagers,andAmyOdum.Weappre- ciate their support and forbearance, without which this book would not have beenpossible. xi cc0011__11 0099//3300//22000088 11 1 INTRODUCTION ‘‘DammitJackson,ifyoudon’thavetimetodoitrightthefirsttime,how doyouexpecttohavetimetofixitlater?’’ Thus, in 1969, began an education in Enterprise Excellence in the U.S. AirForce—albeitunknowinglyatthetime. SGTHarryJacksonUSAF The challenges facing business and industry are unparalleled in history: uncer- taintyassociatedwiththewaronterrorism,failingconfidenceinbusinesslead- ers, dynamic global marketplace, skyrocketing energy costs, shrinking budgets—and the list goes on. These challenges have led to ‘‘management by best seller’’: grasping for the silver bullet that will solve immediate problems andenabletheenterprisetomeetmonthlyorquarterlynumbers.Yetsomeavoid the ‘‘silver bullet paradigm’’ and continue to prosper and thrive (e.g., Toyota, GeneralElectric,andU.S.ArmyArmamentsResearch,DesignandEngineering Center,a2007MalcolmBaldrigeNationalQualityAwardWinner). Government agencies, like business and industry, face the same challenges; however, these are compounded by shrinking budgets, broadening commit- ments,legacysystemsmaintainedlongaftertheirplannedlife,unrealisticfinan- cialandschedulepressuretomeetmilestonecommitments,andtheever-present urgencytosatisfyconstituents.Themilitaryenvironmentisfurthercomplicated by the need to maintain systems and equipment, often beyond its intended life and,withthewaronterror,beyondtheintendedtempoofoperation.Asinbusi- ness and industry, some government agencies have also resorted to ‘‘manage- ment by best seller,’’ seeking the silver bullet. All of these organizations are searchingforaquickresolutiontoproblemsandsituationsthathavebeenyears inthemakingandaresupportedbywell-entrenchedculturesandbureaucracies. LAW OF UNINTENDED CONSEQUENCES The serious challenges facing business, industry, and government require, to paraphraseEinstein,differentthinkingthanthatwhichcreatedthem.Thesilver Enterprise Excellence: A Practical Guide to World-Class Competition N. L. Frigon and H. K. Jackson Jr. 1 Copyright © 2009 by Normand L. Frigon & Harry K. Jackson Jr. ISBN: 978-0-470-27473-6
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