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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.

The Art of Subtraction

In Matthew May’s new book, The Laws of Subtraction (McGraw-Hill 2013), he outlines some key concepts refined from his years with Toyota:

At the heart of every difficult decision lie three tough choices:

  • What to pursue versus what to ignore.
  • What to leave in versus what to leave out.
  • What to do versus what to don’t.

The key is to remove the stupid stuff: anything obviously excessive, confusing, wasteful, unnatural, hazardous, hard to use or ugly. This is the art of subtraction.

Isn’t that the core of Lean?

Posted by Jay Arthur in Lean, Manufacturing, Service.

Looking for Lean Visuals

I have found that people understand Lean more easily when I can show them examples in the “real world.” Subway, for example, is a Lean work cell. Your kitchen is a Lean work cell.

And I also look for places where people have “made things visual and self explanatory,” One of the principles of Lean. Here’s a couple of images from my local gas station:

Gas Station Color Code

Color Coded Gas Tanks

 

Posted by Jay Arthur in Jay Arthur Blog.