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Posts tagged "Six Sigma"

Cp Cpk Formulas and the Mistakes in Homemade Templates

Creating homemade Cp and Cpk templates often results in incorrect values. There are many, many mistakes you might make without realizing. Here are a few examples.

A customer sent me their home grown template for calculating Cp and Cpk and wondered why the QI Macros got such radically different values. It was easy to see from their data that they were using standard deviation, not Sigma estimator (Rbar/d2) to calculate Cp and Cpk. Use Stdev to calculate Pp and Ppk, not Cp and Cpk:

cp-cpk-formula-mistake1

They had run the QI Macros histogram on two columns of data, one measured at 0 degrees and one measured at 90 degrees.

Posted by Jay Arthur in Manufacturing, QI Macros, Six Sigma, Statistics.

Most Valuable Career Skills

This month’s issue of Money Magazine discusses the 21 Most Valuable Career Skills. At the top of the list, statistical analysis increasing pay by 6.1%. Right behind statistical analysis is Data Mining at 5.1%. It’s incredibly easy to learn these two skills using QI Macros and Six Sigma.

Also on the list, Customer Service Metrics (4.3%). I have found that the written comments in customer service systems can be easily analyzed using the QI Macros Word Count tool to identify the most common type of call or complaint. Then simple root cause analysis can reduce or eliminate those calls.

Business analysis (3.8%) is easy with QI Macros Control Chart Dashboards.

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

Information Blindness

Charles Duhigg, in his book Smarter, Faster, Better, describes a condition he calls “information blindness.” When faced with too much information, people shut down because they don’t know what to do with it.

I find this is true in most companies. They collect tons of data, but can’t “winnow” the data down into the vital few bits of information that would transform their business. What I invariably do is use PivotTables, control charts and Pareto charts to find the “vital few” bits that tell us exactly where to find and fix the problems that cause over half of the waste, rework and lost profits.

Posted by Jay Arthur in Six Sigma.

The Correct Way to Draw a Pareto Chart

I first learned how to draw Pareto charts by hand using engineering paper if you can believe it. Our trainers were very specific about how they were to be drawn. One of the earliest references I can find is Kaoru Ishikawa’s Guide to Quality Control. Here’s the correct way to draw a Pareto chart using data from Ishikawa’s book:

Pareto Chart of Defect Data from Ishikawa's Guide to Quality Control
The bars should be touching and the cumulative percentage line should go from corner to corner of the first bar.

Unfortunately, most Pareto charts drawn by computer look like the following one, bars not touching and cumulative line running out of the center of the top of the first bar.

Posted by Jay Arthur in QI Macros, Six Sigma.

What Do Customers Want?

Customers invariably want three things from any supplier; they want you to be better, faster and cheaper that your competition and your past performance. It’s vital to find out what they want. Sometimes it’s as easy as asking: “What can we do better?” and then listening carefully to the response.

One way to figure out what customers want is to develop a voice of the customer (VOC) diagram and keep it updated.

voice of the customer template

Along the left-hand side are the customer’s requirements for better, faster and cheaper. The goal is to capture exactly what they say in their language. Then translate what they say into business changes that deliver on those requirements.

Posted by Jay Arthur in QI Macros, Six Sigma.

Is a Fear of Math Stopping Your Six Sigma Projects?

I have found that a high number of people have a fear of math. They seem to think that you are either born with math skills or you aren’t.

In the Jan/Feb 2016 Scientific American Mind, author Carol Dweck reviews the most recent research into The Remarkable Reach of Growth Mind-Sets.

One study by Kathy Liu Sun found that middle school math teachers that embraced growth mind-set but did not back it up with growth mind-set teaching methods such as emphasizing underlying concepts, giving feedback and giving students a chance to revise and resubmit their work caused their students to develop a fixed mind-set.

Posted by Jay Arthur in QI Macros, Six Sigma.

The Burnt Toast Society

For many years, I’ve been endlessly annoyed by the mistakes and errors of every service and product business I use. From crappy cell phone service to mistakes on restaurant bills. I have hesitated to write about these experiences because it seemed too much like whining, but my daughter Tina introduced me to the concept of the “Burnt Toast Society.”

Burnt Toasters will eat burnt toast at a restaurant rather than send it back. I think American consumers put up with too much mediocrity. So I have decided to start complaining online about every burnt toast experience.

I recently flew back on Frontier Airlines from the Institute for Healthcare Improvement (IHI) conference in Orlando.

Posted by Jay Arthur in Six Sigma.

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.

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.

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.