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You don’t have to fix everything, just the one thing out of 25 that causes over half the waste, rework and lost profit.
“Hi, I’m Jay Arthur, author of “Lean Six Sigma Demystified” and QI Macros [software].
“I’ve talked to you about Pareto’s rule before, but I continue to come back to this time and time again: 20% of what you’re doing is producing 80% of the waste, rework, lost profit, [lost] productivity, patient harm… whatever it is. But within that 20% that Pareto rule still applies, which means that only 4% of what you’re doing is producing over half the mistakes and errors.
Continue Reading "Drill Down to the 4-50 Rule to Get Results"
Posted by Jay Arthur in Agile Lean Six Sigma, Data Mining, Improvement Insights, QI Macros.
We’re all familiar with Pareto’s rule: 20% of causes produce 80% of the results. But are you familiar with Arthur’s 4-50 rule? Typically, 4% of any process – one step out of 35 – is the cause of more than 50% of waste, rework and lost profit.
“Hi, I’m Jay Arthur, author of “Lean Six Sigma for Hospitals” and QI Macros [software].
“Now I’ve probably talked to you about this before, but we’re all familiar with Pareto’s rule that 20% of what you do produces 80% of the mistakes, errors, waste, rework, lost profit. 20% of your customers produce 80% of your revenue.
Continue Reading "Arthur’s 4-50 Rule – The Secret to Breakthrough Improvement"
Posted by Jay Arthur in Improvement Insights, Lean, QI Macros, Six Sigma, Statistics.
