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Complex Statistical Software–a Barrier to Six Sigma

At the ASQ Lean Six Sigma Conference, the QI Macros booth was right next to my biggest competitor–the big dog in the market (you know who they are). A guy comes up to me and says: “We bought 150 copies of their product (pointing to the booth next to me) and it was really expensive. I asked our Green Belts if they were using it and they said No, it’s too hard to use.  What are they using; they said Excel.” He went on to say: “I’m thinking about getting the QI Macros because everyone is comfortable with Excel.”

And he wasn’t the only attendee who complained about the same issues: costs too much and too hard to use.

Posted by Jay Arthur in QI Macros, Six Sigma.

Lean – Unnecessary Processing of Online Credit Cards

Almost every time I purchase something online, I see a form that looks like this:

The Credit Card Type and Credit Card Number are redundant resulting in unnecessary duplication and processing

    • AMEX card numbers start with a “3”
    • Visa card numbers start with a “4”
    • Mastercard numbers start with a “5”
    • etc.

There is no reason to ask for both. The number will tell you what kind of card you’re processing. Every day, across millions of transactions, customers are asked unnecessarily for a Credit Card Type. This is a type of waste. It irritates me.

Posted by Jay Arthur in Lean, Service.

The Plastic Breakfast Burrito

I had a breakfast burrito at the Marriott in San Diego last week. I cut it in half and took a bite. I realized there was somthing amiss when I pulled out a strip of plastic. I tried to pull it apart, but it wouldn’t break.

I showed it to the cafe staff and she said: “It looks like an onion.” But a cooked onion would pull apart; the plastic didn’t. I got my money back.

I can imagine that if a machine is cutting onions into strips that it would cut plastic as well. Then the plastic just looks like an onion strip in the egg.

Posted by Jay Arthur in Manufacturing, Service, Six Sigma.

Creating a Culture of Quality

The April, 2014 Harvard Business Review has an article about creating a culture of quality. The authors found that a culture of quality will save $13,400 per employee per year. Surveyed participants also said it takes two hours to fix a mistake. Joseph Juran often said that companies lose a quarter (25%) of their revenue finding and fixing mistakes and errors, so this gives us a benchmark and a reason to embrace quality.

“Companies that take a grassroots, peer-driven approach develop a culture of quality. Traditional strategies have little effect.”

Four Factors that Drive Quality

  • Leadership – As Deming said: “The aim of superision should be the help people and machines and gadgets do a better job.

Posted by Jay Arthur in Lean, Manufacturing, Service, Six Sigma.

Excel App for the iPad and QI Macros

Downloaded and installed Excel for the iPad. It’s provides basic Excel functionality. As expected, it will handle QI Macros charting templates, but won’t run macros. https://www.qimacros.com/store/?cat=14

To get the full functionality of the QI Macros or to run any Visual Basic addins, you’ll need a Windows 8 tablet running Excel 2010 or Excel 2013.

I tried several Win 8 tablets.
The Surface Pro is fast, but heavy and runs warm because of the I5 processor. I didn’t love the keyboard.

I tried the Samsung, but it had an idiot light that blinked when closed that ate 5% of the battery every day.

Posted by Jay Arthur in QI Macros.

How Many Green and Black Belts Do You Need?

A QI Macros customer recently asked: ” What is a reasonable and productive ratio of Lean or Six Sigma expert (LSSBB, for example) to staff for a healthcare organization that is starting the journey?”

The general consensus I can find online about Six Sigma belts/employees is:
1 BB/100 employees
3 GB/100 employees

I think these numbers are designed to keep Six Sigma training companies in business.

Depending on the size of a Medical center, you could use one BB and some GBs to get started. You can’t fix everything all at once, so one BB ramrodding a handful of GBs to solve key problems would be a good start.

Posted by Jay Arthur in Lean, Service, Six Sigma.

Pareto’s Rule in Wealth Distribution

This video suggests that 9 out of 10 Americans think that income should be more evenly distributed.

Unfortunately, Vilfredo Pareto found over a century ago that 20% of the people have 80% of the wealth. He felt that even if it was redistributed it would soon fall back to the 80/20 distribution.

Pareto’s Rule is a power law which means that 4% of Americans should hold 64% of the wealth and 1% of Americans should hold 50% of the wealth. According to this video, the top 1% only has 40%. They also pay 40% of the taxes. The bottom 40% of Americans pay no taxes.

Posted by Jay Arthur in Six Sigma.

Design of Experiments May Not Satisfy Customers

In this video, Malcomb Gladwell describes the quest for the perfect spaghetti sauce. While one company tried to optimize smooth Italian-style spaghetti sauce, another company discovered that customers wanted chunky sauce and stole the show.

http://www.ted.com/talks/malcolm_gladwell_on_spaghetti_sauce.html

DOE can optimize a product, but may not satisfy your customer’s needs.

In this case, if you asked a customer what they wanted in a spaghetti sauce, they couldn’t tell you (Voice of the Customer). The company tried all kinds of variations in their sauce (spicy, thick, thin, chunky, smooth) and tested them with customers. Spicy and chunky had significant showings. Sometimes you have to listen to the “Stomach of the Customer” (SOC).

Posted by Jay Arthur in Six Sigma.

Vanity or Productivity Metrics

Vanity metrics let you feel good about your business.

Productivity metrics tell you the truth about your business. From Running Lean, by Ash Maurya via the Lean Startup, here’s some productivity metrics:

  • Acquisition (how do users find you?)
  • Activation (do they have a great first experience?)
  • Retention (do they return?)
  • Revenue (how do you make money?)
  • Referral (do users tell others?).

Most people want to feel good, so they often select metrics that let them feel good. The people that excel choose metrics that tell them where and how to improve.

You can chart either one with the QI Macros, but vanity charts aren’t going to help you improve.

Posted by Jay Arthur in Lean, QI Macros.

Dermatology Group Boosts Coding Accuracy from 65.4% to 91.7%

In a matter of months, an NC dermatology group boosted insurance coding accuracy saving $65,000.
http://www.msochealth.com/lean-six-sigma-dermatology-practice/

While most of the healthcare quality focus is on hospitals, there’s a huge opportunity to make doctor’s offices more effective and efficient. In this case, better coding results in faster payment of insurance claims. Offices can use Lean to reduce patient wait times and increase volume resulting in more revenue and better patient care.

Posted by Jay Arthur in Lean, Service, Six Sigma.