Evaluating Decision Support System Projects
Why do we determine whether a computerized decision support system application is worth considering or not? Why is there a need to predict the actual impact of a proposed DSS? In short, the question is – why is it necessary to evaluate a decision support system project? The answer is simple. It’s done to assess […]
Planograms – Meaning, its Need and Types of Product Placements
How do you think buildings are constructed? With the help of architectural drawings. An architectural drawing creates a rough print of the building on paper which gives an idea about the floor plans, location of rooms, lobby and so on. In retail a planogram replaces architectural drawings. Once a retailer opens a store, he needs […]
Importance of Project Management for Organizations
Project management is the art of managing the project and its deliverables with a view to produce finished products or service. There are many ways in which a project can be carried out and the way in which it is executed is project management. Project management includes: identifying requirements, establishing clear and achievable objectives, balancing […]
Notional Value: Derivatives Markets
People often say that the size of the derivative markets is exploding. It is over $700 trillion dollars a year now and when we put that number into perspective that is over the GDP of all the countries in the world combined in the last 20 years. How can the value of derivatives in one […]
The Barnewall Model
The traditional financial theory assumes that all investors are rational. Hence, they believe that all investors will reach the exact same conclusion with regard to investment decisions. However, we see evidence of the opposite happening in the marketplace. Even if different people have the same information, they tend to process the information differently and come […]
The Six Sigma philosophy believes in statistical facts. There is no room for error and therefore there is no room for guessing or judgement. Therefore the few inputs that were guessed for being the critical ones in the earlier stages of define and measure now need to be confirmed with statistical analysis.
The purpose of the analyze module is two phased:
Before the introduction of Six Sigma into business, the common practise was to have a business problem and then quickly start working towards a business solution. However in Six Sigma the approach is process focussed and data driven.
The approach is to first convert the business problem into a statistical problem. The data collected in the measure phase is then used to solve this statistical problem and come to a statistical conclusion. This statistical conclusion guides the appropriate plan of action which is then put into effect in a very controlled manner.
The analyze phase receives inputs in the form of identification of the possible few critical inputs to the process being improved. For instance if a cars servicing service process is being improved, the critical inputs that may make it to the analyze stage could be the technical expertise of the workers, the place of service, the time required for service and so on. This information acts as the raw data. However, it is not only this list that must come as the input. Six Sigma professionals can do little more than look at such lists. For each input that has been classified as critical, the measurements collected by running the process must also be available. This will enable the Six Sigma team to statistically prove the inputs which are critical.
The following are the outputs from the Analyze phase:
It is this thorough methodical approach that is used by Six Sigma in finding out issues that makes it more successful than any other quality tool. Reliance on facts is the main feature of Analyze phase as well as of the Six Sigma methodology.
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What the Current Wave of Protectionism and Populism mean for the Future of Globalization and Free Trade
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