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S T R AT E G I C SIX SIGM A BEST PRACTICES FROM THE EXECUTIVE SUITE Dick Smith and Jerry Blakeslee with Richard Koonce JOHN WILEY & SONS, INC S T R AT E G I C SIX SIGM A S T R AT E G I C SIX SIGM A BEST PRACTICES FROM THE EXECUTIVE SUITE Dick Smith and Jerry Blakeslee with Richard Koonce JOHN WILEY & SONS, INC Copyright 2002 by PricewaterhouseCoopers LLP All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada Six Sigma is a registered trademark of Motorola, Inc Use of the spelling “6 Sigma” for Six Sigma occurs in this book when referencing Caterpillar’s use of the methodology No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web at www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, e-mail: permcoordinator @ wiley.com Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose No warranty may be created or extended by sales representatives or written sales materials The advice and strategies contained herein may not be suitable for your situation The publisher is not engaged in rendering professional services, and you should consult a professional where appropriate Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages For general information on our other products and services please contact our Customer Care Department within the U.S at (800) 762-2974, outside the United States at (317 ) 572-3993 or fax (317 ) 572-4002 Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books ISBN 0-471-23294-7 Printed in the United States of America 10 If you think about Six Sigma as another quality program, then it deserves as much intensity as all the other initiatives that can go on in a big company [But] to the degree that you see Six Sigma as a culture changer—something that will profoundly affect the organization—then by definition, it takes the passion and obsession of the CEO to make it happen We saw Six Sigma—and by the way we call it Raytheon Six Sigma—as a way to profoundly change our culture, and therefore it started with me and ends with me I include language on it at almost every meeting that I have, to the extent that people’s lips almost move in synch with mine on this subject —Dan Burnham, Chairman and CEO Raytheon Corporation Contents Acknowledgments Introduction: From Factory Floor to Executive Suite: The Emergence of Strategic Six Sigma as a Business and Leadership Imperative Chapter Chapter Strategic Six Sigma: Current and Emerging Applications ix xiii Rocky Road or Trajectory of Transformation? What Makes Strategic Six Sigma Efforts Successful? 39 Develop a Committed Team of Leaders to Drive Strategic Six Sigma Initiatives 65 Incorporate Strategic Six Sigma Thinking and Best Practices into Your Company’s Strategy Planning and Deployment Process 93 Chapter Be in Touch with Customers and the Marketplace 119 Chapter Build a Business Process Framework to Sustain Strategic Six Sigma Efforts 149 Chapter Demand Quantifiable Results 173 Chapter Develop Incentives and Create Accountability 201 Chapter Success with Strategic Six Sigma Projects Requires Full-Time, Well-Trained Six Sigma Leaders 221 Chapter Chapter vii ... C SIX SIGM A BEST PRACTICES FROM THE EXECUTIVE SUITE Dick Smith and Jerry Blakeslee with Richard Koonce JOHN WILEY & SONS, INC S T R AT E G I C SIX SIGM A S T R AT E G I C SIX SIGM A BEST PRACTICES. .. have learned from introducing Strategic Six Sigma in your company Dick Smith and Jerry Blakeslee Introduction: From Factory Floor to Executive Suite: The Emergence of Strategic Six Sigma as a... a leadership training tool (and companion) to Strategic Six Sigma: Best Practices from the Executive Suite In particular, we want to acknowledge the involvement of Dino Veizis, Jim Veizis, Alex