International Trade Integration
No doubt international trade has existed spanning civilizations, in the current global economic situation no country can keep away without participating in international trade. Countries are moving cautiously away from capitalistic and protectionist outlook and engaging in trade with other countries. With the creation of WTO, there have been constant efforts made to unite countries […]
The Rise of India as a Manufacturing Hub
A couple of decades ago, India was considered to be a third world country with limited economic potential. When the idea of outsourcing first came up, most executives in the United States thought that Central American nations or Ireland would prove to be a better fit. However, two decades later, India is the ultimate destination […]
The Globalization of Supply Chains and its Implications for Trade and Commerce
Globalization of Supply Chains and its Implications We have discussed how the globalization of the world economy has made the globe more integrated and interconnected. While this has both positive and negative effects on the way global trade and commerce takes place, there is one critical aspect that needs our attention. That is to do […]
South Korea: A Stunning Success Story
Today, South Korea is one of the largest economies in the world. It is the 12th largest to be precise. However, the influence it has in global markets is significant. It is home to many multinational corporations which compete against the best in the world. For instance, American markets are flooded with Korean manufactured automobiles. […]
Finished Goods Inventory Classifications and Terminologies
While inventory classification of raw materials for Inventory Management purposes follows ABC Classification, Finished Goods inventory is classified under additional categories based on various attributes including sales volumes/patterns, functional attributes and operational requirements. Stock Category depending upon Sales Channels Finished Goods at the very basic level is manufactured and stocked separately depending upon the Business […]
Since the entire premise of having a Six Sigma process is based on measurement, comparison of measurements and setting corrective action plans, it is crucial that the variables (metrics) being measured are appropriate. Wrong measurements lead to wrong decisions which are expensive and a wastage of time and resources.
As explained in the Define module, there must at least be two types of variables being measured i.e. the primary metric and the secondary metric. The primary metric is the variable whose value must be checked for improvement, whereas the secondary variable is the variable whose value must be checked to ensure that it does not get deteriorated.
Apart from that one also needs to ensure that both inputs and outputs are being measured. Since the process has the form Y=f(X) both, the Y and the X must be carefully monitored real time to ensure that f() i.e., the process is behaving as expected.
Here are a few characteristics that the variables being used to create a Six Sigma control plan must possess:
Must Display the State of Affairs: There is always a difference between the measurements that variables show and what the desired state of affairs is. This usually happens when a single metric is used to understand the state of affairs.
For instance, if in a call center, the only metrics used is call handling time, agents are likely to start hanging up calls without giving appropriate service to meet their numbers. It is therefore essential that management must brainstorm ways in which the system can be broken. This means that they must try to find out ways in means in which all the variables are showing desired values, however the process is still out of control. If such a scenario exists,the variables must be corrected to include this scenario.
Critical: In a Six Sigma process, there are likely to be many variables. However, as Pareto analysis has shown, all these variables may not be equally important. Hence, the metrics chosen must have a material impact on the process. It is impossible to monitor all the variables without building in mind-boggling complexity in the system.
Easy to Measure: The variables being chosen to measure must not require installation of new equipment or machinery. If this is the case, a cost benefit analysis must be done to justify the added costs. Also the variables to be recorded must not require considerable intelligence or expertise on the part of the person recording them.
Produce Correct Measurements: Needless to say that the variables must be put through the Measurement Systems Analysis tests described in the Measure Module. The success of the entire project depends upon the reliability of this data. Therefore one must ensure that the data is in fact reliable!
Measurable over a Period of Time: Also, the metrics must facilitate easy collection of data over a period of time. This is because control charts are time series plots and data needs to be collected over a period of time and plotted on these graphs.
The correct variables are the fundamentals of a good control plan. The procedure may look deceptively simple. However, wrong variables can have significant impact on your project, inclusing making your project a failure.
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Step 3B: Choosing the Correct Control Chart (Continuous Data)
February 12, 2025
