Prentice hall six sigma for marketing processes an overview for marketing executives leaders and managers feb 2006 ISBN 013199008x

Six Sigma for Marketing Processes: An Overview for Marketing Executives, Leaders, and Managers By Clyde M Creveling, Lynne Hambleton, Burke McCarthy Publisher: Prentice Hall Pub Date: February 17, 2006 Print ISBN-10: 0-13-199008-X Print ISBN-13: 978-0-13-199008-1 Pages: 304 Table of Contents | Index Nearly half of the top one hundred Fortune 500 companies use Six Sigma methodology in some part of their business These companies have been among the top one hundred for five or more years and consistently report higher revenue and significantly higher profits than competitors This underscores the impact on the cost side Now the focus moves to revenue growth Six Sigma consultant Clyde M Creveling's Design for Six Sigma in Technology and Product Development is the standard guide for product commercialization and manufacturing support engineers who want to apply Six Sigma methodology to technology development and product commercialization Now, in Six Sigma for Marketing Processes, Creveling joins with Lynne Hambleton and Burke McCarthy to show the ways marketing professionals can adapt and apply those same Six Sigma concepts to create a lean marketing workflow built for growth This book provides an overview of the way marketing professionals can utilize the value offered by Six Sigma tools, methods, and best practices, within their existing phase-gate processes, as well as the traditional Six Sigma problem-solving approach: define, measure, analyze, improve, control (DMAIC) It provides unique methods for employing Six Sigma to enhance the three marketing processes for enabling a business to attain growth: strategic, tactical, and operational It goes further to demonstrate the way Six Sigma for marketing and Six Sigma for design can be combined into a unified Six Sigma for growth In this book, you'll learn how to apply Six Sigma methodology to Develop a lean, efficient marketing workflow designed for growth Enhance the three marketing arenas for growth: strategic, tactical, and operational Identify leading indicators of growth and become proactive about performance improvement Strengthen links between customers, products, and profitability Redesign marketing work to streamline workflow and reduce variability Assess and mitigate cycle-time risk in any marketing initiative or project Leverage DMAIC to solve specific problems and improve existing processes Use lean techniques to streamline repeatable processes, such as collateral development and trade-show participation Six Sigma for Marketing Processes: An Overview for Marketing Executives, Leaders, and Managers By Clyde M Creveling, Lynne Hambleton, Burke McCarthy Publisher: Prentice Hall Pub Date: February 17, 2006 Print ISBN-10: 0-13-199008-X Print ISBN-13: 978-0-13-199008-1 Pages: 304 Table of Contents | Index Copyright Prentice Hall Six Sigma for Innovation and Growth Series Preface What Is in This Book? Why We Wrote This Book About the Chapters A Word About Six Sigma Tools, Methods, and Best Practices Acknowledgments About the Authors Chapter 1 Introduction to Six Sigma for Marketing Processes Growth and Innovation What Is Six Sigma? The Traditional Six Sigma Approach Applying Six Sigma to Marketing Unique Six Sigma Marketing Methods Summary Chapter 2 Measuring Marketing Performance and Risk Accrual Using Scorecards Scorecards in Marketing Processes Conducting Gate Reviews Summary Chapter 3 Six Sigma-Enabled Project Management in Marketing Processes Six Sigma Contributions to Project Management in Marketing Processes Designing Cycle Time: Critical Paths of Key Marketing Task-Tool Sets by Phase Modeling Marketing Task Cycle Time Using Monte Carlo Simulations Documenting Failure Modes in the Critical Paths of Marketing Tasks by Phase Summary Chapter 4 Six Sigma in the Strategic Marketing Process Portfolio Renewal Process Discipline in Portfolio Renewal Design Process Discipline During Inbound Marketing Phases of Portfolio Renewal Identify Phase of Portfolio Renewal Identify Phase Tools, Tasks, and Deliverables Define Phase Tools, Tasks, and Deliverables Evaluate Phase Tools, Tasks, and Deliverables Activate Phase Tools, Tasks, and Deliverables Summary Chapter 5 Six Sigma in the Tactical Marketing Process Tactical Marketing Process: Commercialization Commercialization Phases and Gates: Introduction to UAPL The Understand Phase The Analyze Phase The Plan Phase The Launch Phase Summary Chapter 6 Six Sigma in the Operational Marketing Process Six Sigma in the Operational Marketing Process Hard Versus Easy Data Sets The Tools, Methods, and Best Practices that Enable the LMAD Tasks The Launch Phase The Manage Phase The Adapt Phase The Discontinue Phase Summary Chapter 7 Quick Review of Traditional DMAIC The Traditional Six Sigma DMAIC Method The Define Step The Measure Step The Analyze Step The Improve Step The Control Step Chapter 8 Future Trends in Six Sigma and Marketing Processes Glossary A B C D E F G H I K L M N O P Q R S T U V W Y Index Copyright Many of the designations used by manufacturers and sellers to distinguish their products are claimed as trademarks Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed with initial capital letters or in all capitals The authors and publisher have taken care in the preparation of this book, but they make no expressed or implied warranty of any kind and assume no responsibility for errors or omissions No liability is assumed for incidental or consequential damages in connection with or arising from the use of the information or programs contained herein The publisher offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales, which may include electronic versions and/or custom covers and content particular to your business, training goals, marketing focus, and branding interests For more information, please contact U.S Corporate and Government Sales 800-382-3419 corpsales@pearsontechgroup.com For sales outside the U.S., please contact International Sales international@pearsoned.com Visit us on the web: www.prenhallprofessional.com Copyright © 2006 Pearson Education, Inc All rights reserved Printed in the United States of America This publication is protected by copyright, and permission must be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise For information regarding permissions, write to: Pearson Education, Inc Rights and Contracts Department One Lake Street Upper Saddle River, NJ 07458 Text printed in the United States on recycled paper at R R Donnelley & Sons in Crawfordsville, IN First printing February 2006 Library of Congress Cataloging-in-Publication Data Creveling, Clyde M., 1956 Six sigma for marketing processes : an overview for marketing executive Clyde M Creveling, Lynne Hambleton, Burke McCarthy p cm ISBN 0-13-199008-X MarketingManagement MarketingQuality control Six sigma (Qual standard) I Hambleton, Lynne II McCarthy, Burke III Title HF5415.13.C74 2006 658.8'02dc22 2005030766 Dedication Skip Creveling: I would like to dedicate this text to my lovely wife, Kathy, and my son, Neil I would also like to dedicate it to my good friend and marketing colleague, Scott McGregor Without his influence, insight, and globetrotting adventures in developing Six Sigma concepts in the world of marketing, this book simply would not exist Lynne Hambleton: I would like to dedicate my work in this book to Bill Magee and Lois Markt for their gentle, steadfast confidence and love, and to Shirley Edwards for her generous and sage guidance, all of which were crucial gifts that sparked energy and conviction I also would like to thank coauthors Skip and Burke for their open and honest partnership and budding friendship Burke McCarthy: I dedicate my work in this book to Janet Crawford and Thomas and Megan Maeve Prentice Hall Six Sigma for Innovation and Growth Series Clyde (Skip) M Creveling, Editorial Advisor, Product Development Systems & Solutions Inc MARKETING PROCESSES Six Sigma for Marketing Processes Creveling, Hambleton, and McCarthy TECHNICAL PROCESSES Design for Six Sigma in Technology and Product Development Creveling, Slutsky, and Antis Tolerance Design Creveling What Six Sigma has been and is becoming has stimulated an exciting, new body of knowledge The old form of Six Sigma is all about finding and fixing problems using the ubiquitous DMAIC process Cost savings and defect reduction are its goals Financial returns from DMAIC projects occur at the bottom line of the financial ledger Many would agree that the DMADV process was the next logical step in the evolution of Six Sigma methodologies when we need to design a new business process The five step models have served us well, but it is time to look into the future The new form of Six Sigma uses tools, methods and best practices which introduces an approach to efficiently produce growth results within your company's existing business processes It is not focused on reactive problemsolving, but rather on prevention of problems during the work you do to innovate, refresh and invigorate your business Its financial return is at the top-line of the financial ledger Its goalinnovation leading to growth Many are asking what is the future of Six Sigma? Has it run its course? Our experience tells us that Six Sigma is alive, evolving and expanding to meet new market demands This is why we are introducing a new series of books that seeks to communicate a newly emerging branch of Six Sigma that focuses on creativity and new business growth The Prentice Hall Six Sigma for Innovation and Growth Series contains books in two general process arenas: Marketing processes and Technical processes The books in this series will span strategic, tactical, and operational process arenas to transcend the ongoing activities within a business Product Portfolio Renewal and R&D are strategic processes; Product and Service Commercialization are tactical processes and Post-Launch Product Line Management, Sales, Customer Service and Support as well as Technical Production, Technical Service, and Support Engineering are operational processes These processes would benefit from the rigor and discipline that Six Sigmaenhanced work produces Expect great things from this new series of books if you are looking for ideas on how to improve innovation and growth on a sustainable basis They will take you to the next level of learning and doing through Six Sigma enablement within your organization Classic Six Sigma is serving us well on the costside and we see only good news on the horizon through the evolution of Six Sigma for Innovation and Growth! Clyde (Skip) M Creveling, Editorial Advisor, Product Development Systems & Solutions Inc Index [SYMBOL] [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] noise 2nd NUD circle Index [SYMBOL] [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] objective of gate reviews OCC (occurrence) operational marketing processes operational models L-M-A-D outbound marketing 2nd 3rd Index [SYMBOL] [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] pay for performance percent confidence performance sustainable performance PERT charts phase-key milestone review system Plan phase Plan phase (UAPL) 2nd 3rd best practices 2nd 3rd Plan gate deliverables 2nd requirements tasks 2nd 3rd planning 2nd portfolio renewal design process discipline during inbound marketing 2nd 3rd 4th IDEA [See IDEA] macro tasks process discipline 2nd portfolio renewal process steps of 2nd portfolio requirements post-launch line management outbound arketing [See outbound marketing] Post-Launch Operational Management process Potential Causes Potential Failure Effects Potential Failure Mode problem prevention 2nd process definition L-M-A-D process discipline portfolio renewal 2nd process improvement methodology [See DMAIC] process risk management L-M-A-D process thinking processes business growth Product and/or Services Commercialization process products 2nd project cycle times [See cycle time] Index [SYMBOL] [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] Quality of Tool Usage Index [SYMBOL] [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] RACI (Responsible, Accountable, Consulted, Informed) Raynor, M Raynor, Michael requirements Activate phase (IDEA) Define gate (IDEA) 2nd 3rd 4th 5th Evaluate phase (IDEA) for adapt phase milestones for discontinue phase milestones for launch phase milestones for manage phase milestones for Understand gate Launch phase (UAPL) 2nd of Analyze gate 2nd Plan gate (UAPL) portfolio requirements responsibilities defining clearly and completely risk color-coded scheme of classifying risk FMEA quantifying risk ranking values Risk Priority Number (RPN) roles defining clearly and completely RPN (Risk Priority Number) rushing Rust, Roland Index [SYMBOL] [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] scorecards 2nd 3rd 4th 5th 6th gate review scorecards 2nd 3rd 4th sample Activate gate deliverables scorecard and guidelines sample Activate phase task scorecard and guidelines sample Analyze gate deliverables scorecard and guidelines sample Define gate deliverables scorecard and guidelines 2nd sample Define phase tools scorecard and guidelines sample discontinue phase deliverables scorecard and guidelines sample discontinue phase task scorecard and guidelines sample Evaluate gate deliverables scorecard and guidelines sample Evaluate phase tools scorecard and guidelines sample Identify gate deliverables scorecard and guidelines 2nd sample Identify phase task scorecard and guidelines sample Identify phase tools scorecard sample Launch gate deliverables scorecard and guidelines sample Plan gate deliverables scorecard and guidelines task scorecards 2nd 3rd 4th tool scorecards 2nd 3rd 4th 5th SEV (severity) Six Sigma 2nd 3rd benefits of implementing Six Sigma for Growth applying to classic product marketing market share development model of awareness-consideration-conversion (hit rate) 2nd 3rd Smith, Bill SPC (Statistical Process Control) standard deviation Statistical Process Control (SPC) Strategic Planning and Portfolio Renewall strategic-tactical-operational triangle success sustainable growth Index [SYMBOL] [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] tactical technical functions for tactical task scorecards 2nd 3rd 4th Task/Tool tasks Activate phase (IDEA) 2nd 3rd Analyze phase (UAPL) 2nd Analyze step (DMAIC) Control step (DMAIC) 2nd Define gate (IDEA) 2nd 3rd Define step (DMAIC) Evaluate phase (IDEA) 2nd for adapt phase milestones 2nd 3rd for discontinue phase milestones 2nd for launch phase 2nd 3rd for manage phase milestones Identify phase (IDEA) 2nd 3rd Improve step (DMAIC) Launch gate (UAPL) 2nd macro tasks commercialization Measure step (DMAIC) Plan phase (UAPL) 2nd 3rd Understand phase (UAPL) 2nd 3rd 4th teams commercializationi timing of gate reviews Tool Function tool scorecards 2nd 3rd 4th 5th tools ad hoc use of Analyze step (DMAIC) Control step (DMAIC) Define gate (IDEA) 2nd Define step (DMAIC) 2nd Identify phase (IDEA) 2nd 3rd 4th Improve step (DMAIC) L-M-A-D 2nd 3rd 4th Understand phase (UAPL) 2nd 3rd 4th trade shows transitioning commercialization projects to ongoing operations trends future business trends 2nd 3rd Index [SYMBOL] [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] UAPL 2nd Analyze phase 2nd 3rd 4th Analyze gate deliverables 2nd 3rd 4th best practices 2nd 3rd requirements 2nd tasks 2nd Launch phase 2nd 3rd 4th best practices 2nd 3rd 4th 5th Launch gate deliverables 2nd 3rd requirements 2nd tasks 2nd Plan phase 2nd 3rd best practices 2nd 3rd Plan gate deliverables 2nd requirements tasks 2nd 3rd Understand phase 2nd 3rd 4th requirements for Understand gate tasks 2nd 3rd 4th tools 2nd 3rd 4th Understand gate deliverables 2nd 3rd 4th 5th 6th UAPL (Understand-Analyze-Plan-Launch) UAPL (Understand-Analyzer-Plan-Launch) UMC (Unit Manufacturing Cost) Understand gate deliverables 2nd 3rd 4th 5th 6th requirements for Understand phase Understand phase (UAPL) 2nd 3rd 4th requirements for Understand gate tasks 2nd 3rd 4th tools 2nd 3rd 4th Understand gate deliverables 2nd 3rd 4th 5th 6th Understand-Analyze-Plan-Launch [See UAPL] [See UAPL] unfinished activities Unit Manufacturing Cost [See UMC] unit-to-unit variation Index [SYMBOL] [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] variance 2nd [See also error rates] variations noise [See noise] VOB (voice of business) VOC (voice of the customer) voice of business [See VOB] voice of the customer [See VOC] Index [SYMBOL] [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] WCBF (Worldwide Conventions and Business Forums) Work Breakdown Structure (WBS) Worldwide Conventions and Business Forums [See (WCBF)] ... This book is reasonably short and is primarily intended as an overview for marketing executives, leaders, and managers Anyone interested in the way Six Sigma tools, methods, and best practices enhance and enable these three marketing. .. Development Systems & Solutions Inc MARKETING PROCESSES Six Sigma for Marketing Processes Creveling, Hambleton, and McCarthy TECHNICAL PROCESSES Design for Six Sigma in Technology and Product Development Creveling, Slutsky, and Antis... development process improvement, product portfolio definition and development, design and marketing for Six Sigma methods, technology development for Six Sigma, Critical Parameter Management, robust design and tolerance design theory and applications in numerous U.S., European, and Asian