Cash Management Module in ERP
Cash management module provides information relating to cash flow of the organization, by processing and analyzing all cash and bank transactions, arising out of payment of supplier’s invoices, receipt from sales invoices, stand alone payment and unallocated payment/receipts. Cash management module also allows analyzing financial transactions for a given period of time and provides information […]
Different types of Data and its Importance
Data can be described as the backbone of any six sigma project. This is because the whole idea of six sigma and operations is to use statistics to manage operations in the factory workshop. Hence, for a six sigma team to understand the types of data and when and how to use them is of […]
Data Warehouse, Data Marts and Online Analytical Processing (OLAP)
Introduction One of the critical components in the information technology age is the data. Data is the source of all the information and information is valuable for decision making process. Decision support systems are developed to support executive management and relevant decision makers. In the modern era, there is large volume of information is available. […]
Customs Department – An Introduction
International Trade is facilitated and controlled by Countries with the help of Foreign Policy, Export Import Regulations, Schedule and Tariff of Import and Export Duties as well as Trade Laws and Regulations. Customs Department is the Federal Government Agency that is invested with Authority to conduct Customs Valuation and collect Import as well as Export […]
Importance of Critical Thinking in the Age of (Mis)-Information
Information Overload can Drown Us We are literally and metaphorically drowning in information. From the time we wake up and check WhatsApp messages to the time we login to Facebook and Twitter or Google News, we are bombarded with an excess of information and data from multiple sources that can leave us drained and confused […]
The mention of the Measure phase of the Six Sigma module brings into mind pictures of statisticians performing complex operations on data to derive meaning out of it. While this is true to some extent, the complexity of the process is highly over-rated. True, that there is a tremendous amount of statistics involved. However, in recent times, the statistics part is being taken care of by the software. Humans need to understand the logical part of the process and provide input to the software and interpret its outputs. The major objectives of the Six Sigma module are mentioned below:
The Six Sigma project team needs to come out with an explicit list of vital inputs, desired outputs and process metrics that they are planning to track. The fact that there are probably hundreds of metrics makes it important to identify and list the vital few. This decision has large scale implications on the performance of the project and is usually taken by the Project Lead on the basis of data provided by the Six Sigma team and the Process Owner.
There have been many cases of measurement bias in Six Sigma history. The bias may have its roots in the complexity of the calculation, the wrong method of data collection or the bias of the person performing the exercise. However, methods have been developed to get rid of all these errors. Measurements are taken automatically, calculated automatically and sent to the concerned managers automatically who use pre-defined rules to make a decision.
One of the biggest challenges of this phase is to validate the fact that the measurement system in place is good for the purpose. We have discussed this challenge in detail in the section titled Management Systems Analysis.
Measure phase also includes collecting the measures that the current process has. This includes measuring the defects per million. Once the defects per million are calculated, the current Sigma Level of the process is found out. This gives the team an idea of the effort that may be required out of them.
A common practise in the measure phase is to put a figure in front of the losses that the organization is currently facing due to inefficient processes. This helps the management valuate the process and the Six Sigma team can bargain for more resources to successfully implement the project. The financial numbers help re-iterate the project value in front of the Project Champion and the Senior Management.
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Characteristics of Data – Central Tendency and Dispersion
February 12, 2025
Steps Involved in Conducting a Measurement System Analysis
February 12, 2025
