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| Cp, Cpk, Pp, Ppk, and Business Metrics - Insightful or Folly? |
In Lean Six Sigma, much training effort is spent on conveying the importance of having a measurement system so that consistent and correct decisions are made relative to part quality and other assessments. Measurement Systems Analysis (MSA) and Gage R&R study (Repeatability and Reproducibility) are an integral part of the Lean Six Sigma Black Belt and Green Belt training. It should be the goal of every organization to achieve the three Rs of business; i.e., everyone doing the Right things, and doing them Right, at the Right time. One tool that provides direction for achievement of the three Rs goal is process performance metrics; i.e., a process' performance report-out should lead to the most appropriate action or non-action. This objective is not unlike an inspection gage MSA, which is to determine if inspectors can adequately determine whether a manufactured component should be accepted or rejected. Because of this performance-reporting need, it would seem that management and practitioners would be assessing how well current scorecard and metric reporting systems are doing from a MSA conceptual point of view. However, this does not seem to be occurring. The question is why do we not examine business metrics and process capability indices reporting from a MSA point of view with the same level of intensity that we do for product quality metrics? This one-hour Webinar will explain more on the magnitude of the issue: we'll give focus to how Cp, Cpk, Pp, and Ppk process capability indices' reporting is sensitive to how a given process is sampled; i.e., an MSA issue. A predictive metric reporting system will then be described for overcoming not only the issues of process capability indices but general business-performance scorecards. |
| Forrest W. Breyfogle, III
| Publication: SSI Webinar
| Published: 2010-01-05 |
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| An Enhanced Business Management System Using Lean and Six Sigma Tools |
| Lean, Lean Six Sigma, total quality management (TQM), and other techniques have helped companies improve processes through the execution of projects. However, much of these efforts have resulted in siloed process improvements that don't benefit the enterprise as a whole. Lean Six Sigma and other process improvement programs have striven to improve their project selection process; however, often the gains from those projects have been minimal. It seems that what needs to be done to resolve this issue is for process improvement efforts to become more integrated within the overall business system (e.g., scorecard creation/management and strategy development/execution.) This article describes is a system for accomplishing this orchestration, where lean and Six Sigma tools enhance the overall business system so that the organization moves toward achieving the three Rs of business: everyone doing the right things, the right way, at the right time. |
| Forrest Breyfogle
| Publication: Quality Digest
| Published: 2009-11-30 |
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| Integrating Lean and Six Sigma Process Improvement Tools |
| There is often much contention between Six Sigma and lean communities. Lean disciples often believe that their methodologies should come first or be above Six Sigma, relative to organizational application, while others with a strong Six Sigma background propose just the opposite.Many process improvement programs now refer to their deployments as lean Six Sigma; however, these programs still tend to consider the tools in isolation without a true tool-integration road map. To address this integration issue, an examination of the measurement that is to be improved can provide insight into which tool or tools would be most applicable for any given situation. |
| Forrest W. Breyfogle, III
| Publication: Quality Digest
| Published: 2009-11-10 |
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| Stop Wasting Improvement Resources |
| In lean Six Sigma and lean kaizen event programs, improvement projects are often selected from a list of potential opportunities that were determined from a brainstorming session. This effort might provide some initial gains when starting a deployment; however, it typically stalls out and the process improvement teams are laid off when times get tough. The reason for this downsizing is that often process improvement efforts are not expended in areas where the overall enterprise benefits the most; e.g., focusing on sales and marketing when excess production capacity is available. This article walks through some of the frequent short-comings of Theory of Constraints and how it can best be applied to the enterprise. |
| Forrest W. Breyfogle, III
| Publication: Quality Digest
| Published: 2009-10-26 |
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| Are Your Business Metrics Measuring the Right Thing? |
Business organizations need a business management system that has predictive scorecards, which encourage behaviors that benefit the enterprise as a whole. Common place red-yellow-green goal-based scorecards can lead to silo improvement efforts that result in much firefighting.
In addition, traditional metric reporting that consists of a table of numbers, pie charts, or stacked bar charts are not predictive and provide only a snapshot of the past with no assessment of what is expected in the future. Also, variance to metric goals can lead to playing games with the numbers, which can be destructive to the business as a whole.
The balanced scorecard approach for choosing metrics after strategy selection can lead to subjective metrics and measurements that are not long-lasting and are a function of economic and leadership changes.
Described is an overall corporate performance management (CPM) system where organizations can analyze their predictive value-chain metrics collectively with other considerations, such as the current business-economic environment and the Theory of Constraints (TOC), to develop strategies. |
| Forrest W. Breyfogle, III
| Publication: Quality Digest
| Published: 2009-10-07 |
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| Predictive Performance Measurements |
Organizations often describe their business performance using a table of numbers, stack bar charts, and/or pie charts. Red-yellow-green scorecards may also be used for an assessment of how well a function is performing relative to established goals.
Traditional performance scorecards present historical information for some timeframe with no predictive statement. Business decisions made through the use of these charts are not unlike driving a car by only looking at its rear view mirror.
What organizations need is a predictive metric reporting system. This futuristic assessment can then be utilized so that if expected future performance is not desirable, adjustments can be made. This is not unlike making an automobile driving adjustment using a steering wheel or brake/gas pedal, where this mechanical intervention is analogous to incorporating process improvement activities.
The described Statistical Business Performance Charting (SBPC) methodology can, for example, reduce firefighting when the performance measurement system replaces organizational red-yellow-green scorecards, which often have no structured plan for making goal-setting improvement objectives.
This article describes how organizations can benefit from a SBPC scorecard or dashboard system, which can guide them to the most appropriate performance-measurement system actions or non-actions in both manufacturing and transactional processes. |
| Forrest W. Breyfogle, III
| Publication: Quality Digest
| Published: 2009-09-30 |
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| NOT Transforming the Data Can Be Fatal to Your Analysis |
| There is debate whether, in statistical process control (SPC), a data transformation should be considered when constructing an individuals chart. This article shows, using real data, why an appropriate data transformation is very important to determine the best action or non-action to take in both manufacturing and transactional processes at any point in time. Described in this article is also an enhancement to traditional process control charting methodology. The described statistical business performance charting (SBPC) system can, for example, reduce firefighting when the approach replaces organizational goal-setting red-yellow-green scorecards, which often have no structured plan for making improvements. In addition, the methodology provides predictive performance statements. Donald Wheeler and Forrest have a difference of opinion about the need to transform data when a transformation makes physical sense. The reason for writing this article is to provide information on the reasoning for Forrest's position. Hopefully this supplemental explanation will provide readers with enough insight so that they can make the best logical decision relative to considering data transformations or not. |
| Forrest W. Breyfogle, III
| Publication: Quality Digest
| Published: 2009-09-22 |
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| Creating Profitable-Green-Business Strategies |
Many businesses adopt Green strategies as part of their business plan in an effort to be good stewards of the environment and their community. No one can argue that this is not a good thing to do.
However, often these efforts can become a silo activity relative to other organizational initiatives, resulting in a significant negative impact to the corporate financials. Because of the economic implication, this approach for implementing Green could jeopardize future environmental-improvement efforts.
VIEW NOW, and learn about an alternative business system approach to integrating Green strategies with other organizational strategies so that created environmental-enhancement efforts either improve or do not degrade the current financials.
Described is a methodology for targeting Green efforts so that there is success, while maintaining or enhancing overall business benefits.
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| Rick Haynes and Forrest W. Breyfogle, III
| Publication: Smarter Solutions, Inc.
| Published: 2009-09-16 |
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| Non-normal Data: To Transform or Not to Transform |
| This article was written as an alternative approach to analyzing non-normal data to that which was presented by Dr. Don Wheeler in a previous Quality Digest newsletter. This article illustrates, from a high level, or 30,000-foot-level, when and how to apply transformations and present results to others so that the data analysis leads to the most appropriate action or nonaction. Statistical software makes the application of transformations simple. |
| Forrest W. Breyfogle, III
| Publication: Quality Digest
| Published: 2009-09-02 |
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| A Mini Kaizen Event - Selecting a Provider: Not All Black Belt Training is Created Equal |
Anyone who wants Lean Six Sigma training quickly finds out that not all Lean Six Sigma Black Belt trainings are created equal. After learning this, the next question is “Which one is right for me?”
VIEW NOW as we walk through the following topics to evaluate the key factors that make up and differentiate black belt courses to assist you in your search for that course that best suites your needs:
Why should you care where you get trained?
Topic review, Teaching methods,
Instructional Materials, Certification, Content, Applicability
What you may not know you need to know!
Join us in this mini-Kaizen event to assess each of the key inputs of BB training, even those you may not even know to consider. A recording of this Webcast will be available if you can't attend the above session. Please VIEW NOW and we'll send you a link to the recording. |
| Rick Haynes, MBB
| Publication: SSI Webinar
| Published: 2009-08-19 |
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