Six Sigma Green Belt Project Problem
One of our QI Macros users sent me a Greenbelt Project to review. The team did a great job of using the tools and connecting the dots. There was only one small problem…
Improvement Insights Blog
Posts tagged "Six Sigma"
Statistics are Simple
People have been trying to make statistics simple and easy to understand for decades.
But statistics aren’t simple. Maybe we should change how we teach them?
GE’s Problems – Strategy or Six Sigma?
The recent collapse of GE stock price has led to a lot of discussion. Here’s my two cents.
Jack Welch implemented Six Sigma at GE which drove many CEOs to do the same. From scuttlebutt I’ve picked up over the years, this lead to crazy rules like every employee had to do two Six Sigma projects a year. This would violate Pareto’s Rule: if only 20% of the business is creating 80% of the defects, waste and rework, having employees try to fix the remaining 80% of the business is a waste of resources. Six Sigma needs focus, not spread.
Jeffery Immelt reduced leadership support for Six Sigma.
Signal versus Noise
“Our evolutionary instincts sometimes lead us to see patterns when there are none there. People have been doing this all the time – finding patterns in random noise.” – Tomaso Poggio
People just need a way to separate the Signal from the Noise.
Here are some insights from the book by Nate Silver.
Measuring Six Sigma Success
This recent article talks about how GE measured Six Sigma success:
“Engineers and scientists were measured on how many Six Sigma projects they completed during the year.”
Since I know that 4% of the business is causing over half of the waste, rework and lost profit (the 4-50 rule), making everyone do “Six Sigma projects” is a form of overproduction (violating a Lean rule). It creates waste, rework and unhappy employees. It makes people put trivial improvements in Six Sigma format to achieve the goals.
Measure Six Sigma success by bottom-line, profit and productivity enhancing results, not projects. Use data to focus improvements to maximize results and minimize effort.
Lean Six Sigma Fundamentalists vs Revolutionaries
Lean Six Sigma Fundamentalists believe:
– Get management commitment
– Train lots of black and green belts
– Implement wall-to-wall floor to ceiling
Lean Six Sigma Revolutionaries believe:
-Engage informal leaders
-Train money belts
-Laser-focused, data-driven breakthrough improvements
Continue Reading "Lean Six Sigma Fundamentalists vs Revolutionaries"
Is Fear of Math Holding You Back?
Many people avoid Six Sigma because they think it involves a lot of math and statistics. You know, formulas. I don’t think you need any formulas. You don’t need to be a statistician. You just need software that went to college and knows the formulas.
In The Math Gene, Author Keith Devlin explores “why so many people find mathematics impossibly hard.” He says: mathematics is the science of patterns. Isn’t that what we’re trying to do in Six Sigma, separate the wheat from the chaff, separate the signal from the noise and detect the underlying patterns of performance?
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:
They had run the QI Macros histogram on two columns of data, one measured at 0 degrees and one measured at 90 degrees.
Continue Reading "Cp Cpk Formulas and the Mistakes in Homemade Templates"
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.
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.
