Six Sigma for Small Business

by Brue, Greg

• ISBN13: 9781932531558
• ISBN10: 1932531556
• Edition: 1st
• Format: Paperback
• Copyright: 2005-10-25
• Publisher: Entrepreneur Press

Summary

This is the only book that teaches a small business how to use the six sigma methodology Greg Brue was part of the original GE team under Jack Welch that developed the first large-scale six sigma program There are over 7.9 million small businesses in the United States, and they employ 99.7 percent of the workforce

Author Biography

Greg Brue is the world’s leading practitioner of six sigma. He worked with CEO Jack Welch to implement six sigma at General Electric, and his success model and training content have been the industry standard for more than a decade. As CEO of six sigma Consultants, Inc., he trains and mentors executives and conducts six sigma seminars and monthly boot camps. His clients have included Citibank,Target, DuPont, Raytheon, and Verizon.

Table of Contents

Preface	xi
What Is Six Sigma and Why Should I Care?	1	(15)
Welcome to Six Sigma	3	(2)
Defining Six Sigma and Starting on the Path	5	(1)
The Basic Components of Six Sigma	6	(3)
Common Myths About Six Sigma	9	(1)
Common Concerns About Implementing Six Sigma	10	(3)
Finding Your Areas of Improvement	13	(1)
Summary	14	(2)
Six Sigma, Your Business, and You	16	(14)
A Very Brief History of the Quality Movement	18	(2)
Defining Quality for Small Business	20	(1)
Six Sigma and Your Employees	21	(3)
Six Sigma and Company Culture	24	(1)
The Role of the Small Business Owner/Manager	24	(2)
Progress Assessment	26	(3)
Summary	29	(1)
Defining Key Business Metrics for Six Sigma	30	(17)
Examples of Business and Process Metrics	31	(2)
The Benefits of Developing Metrics	33	(1)
Good vs. Bad Metrics	33	(1)
Determining Relevant Business Metrics	34	(1)
General Guidelines for Setting and Using Metrics	35	(1)
Using Metrics to Manage	36	(1)
A Little Statistics	37	(3)
Curves and Straight Lines	40	(3)
Using Metrics to Manage a Core Process	43	(3)
Summary	46	(1)
Staffing Your Six Sigma Initiative	47	(21)
Key Six Sigma Players	49	(1)
Executive Leader(s)	50	(1)
Champions	51	(2)
Black Belts	53	(1)
Master Black Belt	54	(1)
Green Belts	55	(1)
Project Team Members	56	(1)
Key Six Sigma Players in Your Organization	56	(1)
Filling Key Roles	56	(4)
Training and Training Resources	60	(5)
Additional Resources: Time and Money	65	(1)
Moving Forward---Plan It!	65	(1)
Advanced Planning Required to Launch Your Six Sigma Initiative	66	(1)
Summary	67	(1)
Selecting Your Six Sigma Project	68	(16)
Key Criteria for Project Selection	69	(1)
The Low-Hanging vs. Rotted Fruit	70	(2)
Scoping a Project	72	(1)
Project Ideas	72	(2)
Critical-to-Quality	74	(1)
The Project Problem Statement	75	(1)
The Project Objective Statement	75	(1)
A Good Project	76	(1)
A Bad Project	77	(1)
Using Your Data: Pareto Charts	77	(4)
Picking Your Project	81	(2)
Summary	83	(1)
Your Six Sigma Project: The Define Phase	84	(22)
Overview of the Define Phase	86	(1)
Step 1: Identify the Problems in Your Process	87	(1)
Step 2: Identify the Process Owner/Sponsor	87	(1)
Step 3: Begin the Project Charter	88	(1)
Step 4: Assemble the Project Team	88	(3)
Step 5: Build a RACI Chart	91	(1)
Step 6: Collect Customer Data	92	(1)
Step 7: Translate VOC into CTQs	93	(7)
Step 8: Develop Problem Statements	100	(1)
Step 9: Establish Project Metrics	101	(1)
Step 10: Focus on the Vital Few Factors	101	(2)
Step 11: Identify Necessary Resources	103	(1)
Step 12: Create a Project Plan	103	(1)
Step 13: Conduct a Phase-Gate Review	104	(1)
Conclusion	104	(1)
Summary of the Major Steps in the Define Phase	104	(2)
Your Six Sigma Project: The Measure Phase	106	(21)
Can You Trust Your Data?	108	(4)
Overview of the Measure Phase	112	(1)
Steps 1 and 3: Select Y's and Identify X's	113	(1)
Step 2: Define Performance Standards for Y's	114	(1)
Step 4: Validate the Measurement System for Y's and X's	114	(1)
Step 5: Collect New Data	115	(1)
Step 6: Establish Process Credibility for Creating Y	116	(7)
Step 7: Conduct a Phase-Gate Review	123	(1)
Conclusion	123	(1)
Summary of the Major Steps in the Measure Phase	124	(1)
Sigma Abridged Conversion Table	125	(2)
Your Six Sigma Project: The Analyze Phase	127	(15)
Overview of the Analyze Phase	132	(1)
Step 1: Localize the Problem	133	(2)
Step 2: State the Relationship You Are Trying to Establish	135	(1)
Step 3: Establish the Hypothesis	135	(1)
Step 4: Decide on Appropriate Techniques to Test the Hypothesis	136	(1)
Step 5: Test the Hypothesis Using the Data Collected in the Measure Phase	137	(1)
Step 6: Analyze the Results and Reach Conclusions	138	(1)
Step 7: Validate the Hypothesis	139	(1)
Step 8: Conduct a Phase-Gate Review	140	(1)
Conclusion	140	(1)
Summary of the Major Steps in the Analyze Phase	140	(2)
Your Six Sigma Project: The Improve Phase	142	(23)
The Improve Phase	144	(2)
Correlation Analysis	146	(7)
Design of Experiments	153	(2)
Overview of the Improve Phase	155	(1)
Step 1: Define the Problem	155	(1)
Step 2: Establish the Experimental Objective	155	(1)
Step 3: Select the Variables and Choose the Levels for the Input Variables	156	(1)
Step 4: Select the Experimental Design	156	(2)
Step 5: Run the Experiment and Collect Data	158	(2)
Step 6: Analyze the Data	160	(2)
Step 7: Draw Practical Conclusions	162	(1)
Step 8: Replicate or Validate the Experimental Results	163	(1)
Step 9: Conduct a Phase-Gate Review	163	(1)
Conclusion	164	(1)
Summary of the Major Steps in the Improve Phase	164	(1)
Your Six Sigma Project: The Control Phase	165	(26)
The Control Phase	166	(2)
Statistical Process Control (SPC)	168	(1)
Overview of the Control Phase	169	(1)
Step 1: Select the Variable to Chart	169	(1)
Step 2: Select the Type of Control Chart to Use	170	(1)
Step 3: Determine Rational Subgroup Size and Sampling Interval/Frequency	170	(2)
Step 4: Determine Measurement Methods and Criteria	172	(1)
Step 5: Calculate the Parameters of the Control Chart	172	(9)
Step 6: Develop a Control Plan	181	(2)
Step 7: Train the People and Use the Charts	183	(4)
Step 8: Conduct a Phase-Gate Review	187	(1)
Mistake Proofing	188	(1)
Conclusion	189	(1)
Summary of Major Steps in the Control Phase	190	(1)
Sustain Your Six Sigma Gains	191	(10)
Taking Stock	192	(1)
What Makes a Six Sigma Implementation Successful?	193	(3)
Case Studies	196	(2)
The Six Sigma Epilogue	198	(3)
Index	201