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Services

Blog posts and articles about using data analysis and statistics in quality improvement initiatives in the service sector.

People frequently have different opinions. Usually that's fine—if everybody thought the same way, life would be pretty boring—but many business decisions are based on opinion. And when different people in an organization reach different conclusions about the same business situation, problems follow.  Inconsistency and poor quality result when people being asked to make yes / no, pass / fail, and... Continue Reading
The ultimate goal of most quality improvement projects is clear: reducing the number of defects, improving a response, or making a change that benefits your customers. We often want to jump right in and start gathering and analyzing data so we can solve the problems. Checking your measurement systems first, with methods like attribute agreement analysis or Gage R&R, may seem like a needless waste... Continue Reading

7 Deadly Statistical Sins Even the Experts Make

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There may be huge potential benefits waiting in the data in your servers. These data may be used for many different purposes. Better data allows better decisions, of course. Banks, insurance firms, and telecom companies already own a large amount of data about their customers. These resources are useful for building a more personal relationship with each customer. Some organizations already use... Continue Reading
Businesses are getting more and more data from existing and potential customers: whenever we click on a web site, for example, it can be recorded in the vendor's database. And whenever we use electronic ID cards to access public transportation or other services, our movements across the city may be analyzed. In the very near future, connected objects such as cars and electrical appliances will... Continue Reading
While the roots of Lean Six Sigma and other quality improvement methodologies are in manufacturing, it’s interesting to see how other organizational functions and industries apply LSS tools successfully. Quality improvement certainly has moved far beyond the walls of manufacturing plants! For example, I recently had the opportunity to talk to Drew Mohler, a Lean Six Sigma black belt and senior... Continue Reading
If you're just getting started in the world of quality improvement, or if you find yourself in a position where you suddenly need to evaluate the quality of incoming or outgoing products from your company, you may have encountered the term "acceptance sampling." It's a statistical method for evaluating the quality of a large batch of materials from a small sample of items, which statistical softwar... Continue Reading
Whatever industry you're in, you're going to need to buy supplies. If you're a printer, you'll need to purchase inks, various types of printing equipment, and paper. If you're in manufacturing, you'll need to obtain parts that you don't make yourself.  But how do you know you're making the right choice when you have multiple suppliers vying to fulfill your orders?  How can you be sure you're... Continue Reading
Many of the things you need to monitor can be measured in a concrete, objective way, such as an item's weight or length. But, many important characteristics are more subjective, such as the collaborative culture of the workplace, or an individual's political outlook. A survey is an excellent way to measure these kinds of characteristics. To better understand a characteristic, a researcher asks... Continue Reading
In my recent meetings with people from various companies in the service industries, I realized that one of the problems they face is that they were collecting large amounts of "qualitative" data: types of product, customer profiles, different subsidiaries, several customer requirements, etc. As I discussed in my previous post, one way to look at qualitative data is to use different types of... Continue Reading
In technical support, we frequently receive calls from Minitab users who have questions about the differences between Cpk and Ppk.  Michelle Paret already wrote a great post about the differences between Cpk and Ppk, but it also helps to have a better understanding of the math behind these numbers. So in this post I will show you how to calculate Ppk using Minitab’s default settings when the... Continue Reading
Suppose that you plan to source a substantial amount of parts or subcomponents from a new supplier. To ensure that their quality level is acceptable to you, you might want to assess the capability levels (Ppk and Cpk indices) of their manufacturing processes and check whether their critical process parameters are fully under control (using control charts). If you are not sure about the efficiency... Continue Reading
Using statistical techniques to optimize manufacturing processes is quite common now, but using the same approach on social topics is still an innovative approach. For example, if our objective is to improve student academic performances, should we increase teachers wages or would it be better to reduce the number of students in a class? Many social topics (the effect of increasing the minimum... Continue Reading
It’s common to think that process improvement initiatives are meant to cater only to manufacturing processes, simply because manufacturing is where Lean and Six Sigma began. However, many other industries, in particular financial services and banking, also rely on data analysis and Lean Six Sigma tools to improve processes. Rod Toro is a business process improvement manager at Edward Jones, and I... Continue Reading
In Parts 1 and 2 of Gauging Gage we looked at the numbers of parts, operators, and replicates used in a Gage R&R Study and how accurately we could estimate %Contribution based on the choice for each.  In doing so, I hoped to provide you with valuable and interesting information, but mostly I hoped to make you like me.  I mean like me so much that if I told you that you were doing... Continue Reading
In Part 1 of Gauging Gage, I looked at how adequate a sampling of 10 parts is for a Gage R&R Study and providing some advice based on the results. Now I want to turn my attention to the other two factors in the standard Gage experiment: 3 operators and 2 replicates.  Specifically, what if instead of increasing the number of parts in the experiment (my previous post demonstrated you would need... Continue Reading
"You take 10 parts and have 3 operators measure each 2 times." This standard approach to a Gage R&R experiment is so common, so accepted, so ubiquitous that few people ever question whether it is effective.  Obviously one could look at whether 3 is an adequate number of operators or 2 an adequate number of replicates, but in this first of a series of posts about "Gauging Gage," I want to look at... Continue Reading
The value of analyzing data is well established in industries like manufacturing and mining, but data-driven process and quality improvement is increasingly being adopted in service industries like retail sales and healthcare, too. In this blog post, I'll discuss how a simple data analysis may be used to improve processes in the service sector. Suppose we want to improve the way incoming calls are... Continue Reading
We tend to think of control charts only for monitoring the stability of processes, but they can be helpful for analyzing a process before and after an improvement as well. Not only do control charts allow you to monitor your process for out-of-control data points, but you’ll be able to see how your process mean and variability change as a result of the improvement. You might create separate before... Continue Reading
Process improvement through methodologies such as Six Sigma and Lean has found its way into nearly every industry. While Six Sigma had its beginnings in manufacturing, we’ve seen it and other process improvement techniques work very well in the service industry—from healthcare to more service-oriented business functions, such as human resources. However, Six Sigma seems to have had a slower rate of... Continue Reading
All processes are affected by various sources of variations over time. Products which are designed based on optimal settings, will, in reality, tend to drift away from their ideal settings during the manufacturing process. Environmental fluctuations and process variability often cause major quality problems. Focusing only on costs and performances is not enough. Sensitivity to deterioration and... Continue Reading