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Business Organizational Chart Dummy Corporation - PDF

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					                                     Index




                                                            AL
                                                       RI
                                                 TE
                                           MA
Accuracy/precision, 74 –75                   Breakthrough results plan, 234 –235,
Action plans, 133–134, 168–169                    252–254, 270 –273
American Express, 44, 298                    Bro, Darren, 195–196
                                    D

American Media, 298                          Brown, Larry, 201
American Society for Quality (ASQ),          Burman, J. P., 9
                              TE


    48                                       Business decisions:
Ameritech, 5, 43–44, 207–219, 310              MVT improving accuracy of, 21–24
  empirical testing, three-pronged             typical process, 20 –21
                      GH




       approach, 209–219
    direct MVT, 214 –215                     Capstone Turbine, 300 –301
    implementation of MVT, 215–219           Carbon foam example, 172–174
    indirect MVT, 210 –214                   CarMax, 39
                 RI




  problems/background, 207–209               Case study, MVT (nationwide retailer):
                                               Step 1 (choosing goal and creating
           PY




Barriers to implementation, identifying,            environment), 65– 67
     267                                       Step 2 (measurement system),
BASF, 45–46, 298                                    77–78
    CO




Beaulieu, 6, 298                               Step 3 (control charts), 85–86
Bell, Jeb, 201–206                             Step 4 (data mining), 93–95
BellSouth, 299                                 Step 5 ( brainstorming), 101–103
Benchmarking, 53                               Step 6 (selecting practical/fast/cost-
Boise/Boise Cascade, 15, 299–300                    free ideas), 108–111
Bouckaert, Carl, 6                             Step 7 (designing screening
Brainstorming (MVT Step 5), 28, 60,                 experiment), 123–126
     96–103                                    Step 8 (executing screening
  case study, 101–103                               experiment), 138–141
  ensuring adequate quantity/quality of        Step 9 (analyzing screening test
        ideas, 99–100                               results), 147–149
  participants, 60, 96–98                      Step 10 (designing/executing ref ining
  steps, 98–100                                     experiment), 155–157

                                           315
316                                       Index

Case study, MVT (nationwide retailer)                discriminant analysis, 92, 93
     (Continued)                                     multiple linear regression, 89–91
  Step 11 (analyzing ref ining experiment            multivariate regression, 92
        results), 164 –166                           principle component analysis (PCA),
  Step 12 (implementing most powerful                      91
        ideas), 174 –176                             simple linear regression, 89, 90
Cendant Corporation, 301                          outliers, 93
Champion International, 301                       pitfalls/traps, 88–89, 93
“Champions” of process improvement,               pros and cons, 87–88
     267                                        Data owner, 61, 133
Check sheets, 135–136                           Data review (monitoring process), 136
Chemical process examples, 32–33,               DeBusk, Pete, 243–244
     73–74, 82, 83                              Decision making (“seat-of-pants” versus
Cingular, 301                                        MVT), 4 –5
Circuit City, 6, 39, 301                        Deluxe Corporation, 42, 301–302
Citibank, 40 –41, 301                           Deming, W. Edwards, 14 –16, 263
Cluster analysis, 92                            DeRoyal Industries, 243–244
Cold War, 9–11                                  Design of experiments ( DOE), 16–17,
Communicating, importance of, 135,                   31, 151–152
     170, 192–193, 275–276                      Direct mail response rate improvement,
Compliance, lack of:                                 128
  implementation (factor execution),            Discriminant analysis, 92, 93
        170 –172                                Dummy factors, 122
  screening experiment execution,               DuPont, xii–xiii, 41, 42, 45, 46,
        129–130                                      194 –200, 231, 302–305
Consultants. See MVT consultants                Dyno Nobel, 305
Control. See Monitoring/control
Control charts. See Statistical process         Elo TouchSystems, 305
     control (SPC) charts (MVT Step 3)          Emergency room example, 43
Control limits, calculating, 146                Employees:
Cost-free (criterion for test ideas), 29, 106     getting ideas from, 264 –265, 266
Cost reduction, 38, 41–42, 295                    participating in MVT (see MVT
Counterintuitive learning, 294                         participants)
Creativity, 46, 192                             Environment:
Culture/morale, organizational, 26, 36,           creating (MVT Step 1), 24 –27, 57– 67
     41, 44 –46, 294                              optimal (not required ), 235
Customer(s):                                    Environmental emissions, real life results,
  as brainstorming participants, 97                 179
  communicating MVT success stories             Equipment Controls Company ( ECCO),
        to, 238–239                                 201–206, 305
  customers of, 288                             Ethyl, 305
  MVT focus on, 238, 285–286                    Evans Clay, 33–35, 305
  satisfaction, 38, 42–44, 261–263, 294         Executive dilemma, 3–5
  surveying/capturing wants/needs, 236,         Experiment(s). See Ref ining
        263–264                                     experiment(s); Screening
                                                    experiment(s)
Data collection, 137–138                        Experimental units, 113, 115–120,
Data mining (MVT Step 4), 28, 52–53,                154 –155
    87–95                                       Experts:
  case study, 93–95                               conventional business wisdom, MVT
  methods, 89–92                                       undermining, 13–14
    cluster analysis, 92                          MVT (see MVT consultants)
                                         Index                                       317

Factor(s), 112                                 Implementing selected ideas (MVT Step
  compliance, 171–172                                12), 32, 167–176
  dummy, 122                                     action plan, 168–169
  effects, 143–144, 149, 159–160, 166            case study, 174 –176
  levels, 107, 153                               communicating, 170
  owners, 60 – 61, 133, 139, 169                 factor compliance target, 171
Fast (criterion for test ideas), 29, 106,        factor materials and training,
     294                                               169–170
Financial impact, 32–33, 38–44, 274              f ine-tuning earlier f indings, 172–173
  improved customer satisfaction, 38,            recipe compliance,
        42–44, 261–263, 294                            measuring/reporting, 170 –171
  increased sales, 38, 39–41                     remedying execution f laws, 171
  prof itability, 57–58, 260 –261, 295           results, unexpected, 171–172
  reduced costs, 38, 41–42, 295                  roles/responsibilities, 168–169
Foster Care Coalition, Greater St. Louis,      Infrastructure, establishing, 259
     305                                       Innovation, promoting, 45
Fractional-factorial experiments, 151          Interaction bar chart, 160
Full-factorial experiments, 151                International Paper, 306
                                               International Specialty Products, 45,
GAF Building Materials, 305                          306
General Electric, 49–50, 252                   Ismert, Neil, 6, 8
Glover, Dwight, 34, 35                         ISO, 53
Goal, choosing high-payoff (MVT
    Step 1), 24 –27, 57– 67                    Jahanshahi, Kamran, 41
Googin, John, 17                               Just-in-time training, 63, 279
Grabill, Vic, 218–219
Gray, Scott, 42                                Kieffer Paper, 306
GTE, 305–306                                   King, Randal, 196
                                               Knoxville Utilities Board, 306–307
Hammer, Art, 15, 187
Harris, Dennis, 5, 207, 208–209, 218           LaRoche Chemicals, 307
Healthcare crisis, using MVT for               Lean, being (versus MVT), 53
    solving, 296                               Learning the MVT process, 62– 63. See
Historical data analysis. See Data mining           also Training
    (MVT Step 4)                               Lee, Ron, 196
                                               Lewis, Peter, 222
Idea(s):                                       Linear regression (simple/multiple),
  categorizing as help/hurt/no-impact               89–91
         (MVT Step 9), 30 –31,                 Lowe’s, xii, 22, 46, 185–193, 231
         142–149
  generating:                                  Madden, Tim, 220, 222, 226, 228
     Step 3 (control charts), 27, 79–86,       Madison Paper, 307
           173                                 Management roles:
     Step 4 (data mining), 28, 87–95            brainstorming, 97
     Step 5 ( brainstorming), 28,               committing to organization-wide
           96–103                                    rollout (Phase II), 240 –241,
  selecting for implementation (MVT                  251–273
         Step 11), 31, 158–166                  communicating plan, 234 –235,
  selecting for testing (MVT Step 6),                275–276
         28–29, 60, 104 –111                    communicating proof of need message,
  statistics (percentage that help, hurt, or         234
         have no impact), 22, 193               keys to success, 233–235, 239
318                                  Index

Management roles (Continued)                phases, organization-wide
 reviewing results of MVT process,                improvement effort (see
       161, 163–164                               Organization-wide rollout of
Manufacturing (examples of Phase I                MVT)
     projects), 246                         power of, 3–19
Maplehurst Bakeries, 307                    reasons to use, 38–46
Matrix. See Test matrix                        improved customer satisfaction, 38,
McBee, Bill, 23, 36, 42, 276                         42–44
Measurement system (MVT Step 2), 27,           improved organizational culture,
     68–78, 235                                      44 –46
 case study, 77–78                             increased sales, 38, 39–41
 components, 72                                reduced costs, 38, 41–42
 evaluating (“guilty until proven           ref ining experiments (see Ref ining
       innocent”), 72–76                          experiment(s))
 identifying key measures of success,       requirements, 180 –182
       68– 69, 235                          as science, 33–35
Measuring/reporting recipe compliance,      screening experiments (see Screening
     170 –171                                     experiment(s))
Merrimac Paper, 307                         steps (see MVT process (12 steps))
Metal casting yield, improvement in,       MVT consultants:
     129                                    internal, 237–238, 282–284, 290
Mohawk Paper Mills, 307                     Phase I, 232–233, 247–248
Molded parts (surrogate measurement),       Phase II, 269, 282, 283–284
     77                                     Phase III, 282–284
Molycorp ( Unocal), 307                     Phase IV, 290
Monitoring/control, 236                     Step 1 (creating environment), 61
 Phase I, 248–249                           Step 8 (developing action plan),
 Phase II, 265–266, 268                           133–134
 Phase III, 277–278                         training/certif ication, 63, 237–238,
 Phase IV, 292                                    282–284
Monitoring process, measuring recipe       MVT participants:
     compliance, 135–136                    brainstorming, 60
Monitoring return on investment ( ROI)      data owners, 61, 133
     (Phase III), 278                       factor owners, 60 – 61, 133
Morale. See Culture/morale,                 idea categorization, 60, 106–107
     organizational                         motivating for success, 63– 64
Morton Adhesives, 307                       Phase I, 247–248
Morton International Specialty Products,    project leader, 59– 60, 133
     307                                    senior management (see Management
Motivating project participants, 63– 64           roles)
Motorola, 50, 252                           Step 1 (getting right people involved ),
Mueller, Ed, 107, 207, 208–209, 218               59– 61, 232
Multivariate regression, 92                 Step 8 (action plan roles), 133–134
MVT (Multivariable Testing):                Step 12 (f inal implementation) roles/
 business decisions, improved accuracy            responsibilities, 168–169
       of, 20 –24                           training, 61– 63, 236–237 (see also
 def ined/overview description, 5– 6              Training)
 expected improvement from, 177–180        MVT process (12 steps), 24 –32
 f inancial impact, 32–33                   overview diagram, 25
 history/roots, 8–16                        Step 1 (choosing high-payoff goal and
 versus other approaches, 35–37,                  creating environment), 24 –27,
       47–53                                      57– 67
                                       Index                                       319

  Step 2 (def ining measurement system),      Phase III (executing MVT projects
       27, 68–78                                    throughout organization), 241,
  Step 3 (using control charts to f ind             272, 274 –284
       improvement ideas), 27, 79–86,         Phase IV (maintaining
       173                                          gains/prioritizing
  Step 4 (using data mining and other               opportunities/continuous
       statistical techniques to f ind              improvement), 241, 272, 285–292
       improvement ideas), 28, 87–95         Outliers, 93
  Step 5 ( brainstorming for
       improvement ideas), 28, 96–103        Pacif ic Bell, 207, 209, 308. See also SBC
  Step 6 (selecting improvement ideas              Communications
       that are practical, fast, and cost    Pactiv Corporation, 23, 42, 276, 308
       free), 28–29, 104 –111                Paper manufacturer
  Step 7 (designing MVT screening                  (premium/nonpremium logs), 71
       experiment), 30, 112–126              Payoff, 293–296
  Step 8 (executing MVT screening            People. See MVT participants
       experiment and measuring test         Phases. See Organization-wide rollout of
       results), 30, 127–141                       MVT
  Step 9 (analyzing screening test results   Physical audits, 136
       to categorize ideas as help/hurt/     Plackett, R. L., 9
       no-impact), 30 –31, 142–149           Plastic containers, 43
  Step 10 (designing/executing MVT           Playing the Game, 122–123
       ref ining experiment), 31,            Pond, Dale, 186–189, 190, 191–192
       150 –157                              Practical (criterion for test ideas), 29,
  Step 11 (analyzing results; selecting            104, 105–106
       high-impact ideas), 31, 158–166       Precision/accuracy, 74 –75
  Step 12 (implementing ideas and            Predictive equation, 162, 166
       calculating bottom-line impact),      Principle component analysis (PCA), 91
       32, 167–176                           Prioritizing MVT projects, 259–269,
                                                   276–277
National Enquirer, xiii, 187                 Problems (expected in screening
Negative results (no factor helps),                experiment), 129–132
    162–163                                  Process, QualPro’s elements of, 59, 100
Newberry, Alan, 196–197                      Prof it impact. See Financial impact
Nuclear weapons manufacturing crisis,        Progressive Insurance, 220 –228, 309
    9–11                                     Project selection/prioritization, 57–58,
Number-defective charts (np charts), 81            259–269, 276–277, 285
                                             Proof-of-the-need message, 63– 64,
Oil-Dri Corporation, 308                           257–258, 275
Olin Corporation, 308                        Proportion-defective charts (p charts), 81
Organizational psychology-based              Public good, using MVT for, 296
    approaches, 53
Organization-wide rollout of MVT:            QualPro:
  keys to success, 231–239                    annual leadership symposiums, xi,
  overview, QualPro process, 239–241                297–313
  payoff, 293–296                             Deming, and launch of, 14 –16
  Phase I (completing two initial             elements of process, 59, 100
       projects), 239–240, 242–253,           MVT services offered, xi
       270                                    process for implementing MVT on
  Phase II (senior management                       organization-wide basis,
       commitment), 240 –241,                       239–241
       251–273                               Quasi-interaction effects, 145, 146, 149
320                                      Index

Ray, Rick, 45–46                               Science, MVT as, 33–35, 36
Recipes, 113, 121–122, 154 –155                Screening experiment(s):
Reengineering, 53                                examples, 113–115
Ref ining experiment(s):                         purpose, 113
  design/execution (MVT Step 10), 31,            robustness of, 138
        150 –157                               Screening experiment design (MVT Step
     case study, 155–157                            7), 30, 112–126
     design, 153–155                             case study, 123–126
     execution, 155                              experimental units, 113, 115–122
     full-factorial and fractional-factorial     factors, 112
          experiments, 151                       Playing the Game, 122–123
     reviewing results of MVT screening          randomly assigning experimental units
          experiments, 152–153                         to test recipes, 120
  versus design of experiments ( DOE),           recipes, 113, 118–122
        151–152                                  ref lected designs, 121
  purpose, 150 –151                              size/duration, 122
  results, analyzing (MVT Step 11), 31,          test matrix, 112–113, 118–119
        158–166                                Screening experiment execution (MVT
     case study, 164 –166                           Step 8), 30, 127–141
     comparing results with screening            case study, 138–141
          results, 161–162                       expectations, 127–131
     factor effects, calculating, 159–160,       importance of, 132–138
          166                                    improved results, 127–128
     management review, 161, 163–164             problems, 129–132
     negative results (no factor helps),         steps, 132
          162–163                                   action plan preparation, 133–134
     predictive equation, 162, 166                  collecting data, 137–138
Ref lected designs, 121                             communicating
Requirements, minimum, 180 –182                           plans/roles/procedures/
Retail case study. See Case study, MVT                    logistics/importance, 135
     (nationwide retailer)                          creating/executing monitoring
Return on investment ( ROI),                              process to measure recipe
     monitoring, 278                                      compliance, 135–136
Reward/recognition systems, 236, 265,               factor materials and training, 134
     281–282, 292                                   remedying execution f laws,
Riverwood International, 309                              136–137
Roles. See Management roles; MVT               Screening experiment results, analyzing
     participants                                   (MVT Step 9), 30 –31, 142–149
RR Donnelley & Sons, 309                         analyzing more complex designs, 147
                                                 calculations:
Sabotage, 167                                       control limits, 146
Saks Fifth Avenue, 310                              effects on variability, 146–147
Sales:                                              factor effects, 143–144
  increased, 38, 39–41                              quasi-interaction effects, 145, 146
  marketing and (examples of Phase I             case study, 147–149
        projects), 246                           examining the measurements, 142–143
  retail sales graph example, 33                 ref ining results compared to (in Step
  sales rep performance example, 116,                  11), 161–162
        118–119, 159, 160                      Secondary measures, 69–70
Sauder Woodworking, 310                        Selecting ideas for implementation (MVT
SBC Communications, 6–8, 231,                       Step 11), 31, 158–166
     310 –311. See also Ameritech                case study, 164 –166
                                      Index                                      321

  comparing ref ining results with            number-defective charts (np charts),
        screening results, 161–162                  81
  factor effects, calculating, 159–160,       proportion-defective charts (p charts),
        166                                         81
  management review, 161, 163–164             special causes known with certainty
  negative results (no factor helps),               are a “gimme,” 84 –85
        162–163                               steps, 79
  predictive equation, 162, 166               types (two basic), 80
Selecting ideas for testing (MVT Step 6),     using suspected special causes as basis
     28–29, 60, 104 –111                            for MVT test factors, 84
  case study, 108–111                         variable data, 80
  criteria:                                 Statistical techniques. See Data mining
     cost free, 29, 106                          (MVT Step 4)
     fast, 29, 106                          Steps in MVT process. See MVT process
     practical, 29, 105–106                      (12 steps)
  factor levels, 107, 110                   Success stories:
  participants, 60, 106–107                   communicating, 238–239, 249,
Selecting/prioritizing MVT projects,                288–289
     57–58, 259–269, 276–277, 285             documenting, 233, 249–250
Self audits, 136                            Suppliers, 97, 238–239, 286–288
Senior management. See Management           Surrogate measures, 76–77
     roles                                  Surveying customers/employees,
Service businesses:                              290 –292
  applying MVT to service businesses,       SWAT team approach, 62, 187
        15–16                               Synergies, identifying, 4
  examples of Phase I projects, 246
76 Products, 311                            Tab weld strength example, 115, 121,
Shareholder value, increased, 295                143, 144, 160
Sharp, Richard, 39                          Taguchi, Genechi, 16
Six Sigma, 47–52                            Taguchi, Shin, 16
SkillSearch, 311                            Taguchi Methods, 16–17
Small companies, 201–206                    Technical personnel ( brainstorming),
Soft drinks example, 43                          97
Southwestern Bell Telephone, 6–8,           Telephone audits, 136
     39–40, 207, 209, 311–312. See also     TELUS, 312
     SBC Communications                     Test factors. See Factor(s)
Special causes. See Statistical process     Test matrix, 112–113, 118–119, 124,
     control (SPC) charts (MVT Step 3)           153–154
Standard, 74 –75                            Tillman, Bob, 185–186, 188
Staples, 312                                Total Quality Control (TQC), 53
Statistical process control (SPC) charts    Total Quality Management (TQM), 53
     (MVT Step 3), 6, 27, 51, 53,           Toys “R” Us, 313
     79–86                                  Trade-offs, 163
  attribute data, 80                        Training:
  case study, 85–86                           customized, 237, 269, 279–281
  constructing appropriate chart, 79–81       experts providing, 237
  count data, 80 –81                          internal MVT consultants, 237–238
  identifying each instance of                just-in-time, 63, 279
        uncontrolled variation in the         local workforce, 63
        historical data, 81–82                management, 62– 63
  investigating each special cause to         MVT consultants, 63, 237–238,
        identify its source, 82–84                  282–284
322                               Index

Training (Continued)                   Utility company (example of Plan for
  MVT implementation versus one-time        Breakthrough Results), 253,
       f ix for problem, 26–27              270 –273
  Phase II, 269, 278–281
  Phase III, 279–281                   Variability, calculating effects on,
  Phase IV, 289–290                         146–147
  recommended (for each MVT process    Variation, uncontrolled, 81–82
       role), 281
  Six Sigma pitfall, 48                Wausau-Mosinee Paper, 313
  Step 1, 61– 63                       Wells, Jeff, 6
  Step 8, 134                          Whitacre, Edward, Jr., 207
  Step 12, 169–170                     Williams-Sonoma, 39, 107, 313
  success factor, 237                  Witco, 313
  SWAT team approach, 62               Workforce, local, 97, 233
  top-down, 279                        Work required during MVT process,
TV Guide, 313                              180 –181
                                       World War II, 8–13
Unexpected, planning for, 192
Union Carbide, 9, 10 –11, 15           Zep Manufacturing, 313
Unocal, 307, 313

				
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