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Six SIGMA for Small Business

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A Six Sigma pioneer from Jack Welch’s original team at GE shows you how to bring big improvements to your small business

Six Sigma for Small Business is the first book to apply six sigma to the unique challenges of a small business. It shows how to use the methodology in all aspects of business to identify and fix problems, with chapters on: accounting, finance, sales and marketing, purchasing a business, human resources, and developing new products. It walks you through a ...

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Overview

A Six Sigma pioneer from Jack Welch’s original team at GE shows you how to bring big improvements to your small business

Six Sigma for Small Business is the first book to apply six sigma to the unique challenges of a small business. It shows how to use the methodology in all aspects of business to identify and fix problems, with chapters on: accounting, finance, sales and marketing, purchasing a business, human resources, and developing new products. It walks you through a step-by-step implementation of six sigma, describing how to identify needs, develop metrics, and set objectives. It also provides real-life examples of small-business six sigma success stories.

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Product Details

  • ISBN-13: 9781932531558
  • Publisher: Entrepreneur Press
  • Publication date: 10/31/2005
  • Edition number: 1
  • Pages: 320
  • Product dimensions: 6.14 (w) x 9.00 (h) x 0.47 (d)

Meet the Author

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.

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Table of Contents

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