Wednesday, March 19, 2014

Dr. Deming's 14 Management Principles

Dr. W. Edwards Deming suggest 14 management principles for long term sustainability in Quality, Productivity and Competitiveness.

I wonder how many point here adopted by the industries today.

1. Create constancy of purpose for improving products and services.

2. Adopt the new philosophy.

3. Cease dependence on inspection to achieve quality.

4. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier.

5. Improve constantly and forever every process for planning, production, and service.

6. Institute training on the job.

7. Adopt and institute leadership.

8. Drive out fear.

9. Break down barriers between staff areas.

10. Eliminate slogans, exhortations, and targets for the workforce.

11. Eliminate numerical quotas for the workforce and numerical goals for management.

12. Remove barriers that rob people of pride in their work, and eliminate the annual rating or merit system.

13. Institute a vigorous program of education and self-improvement for everyone.

14. Put everybody in the company to work to accomplish the transformation.

Wednesday, January 29, 2014

Best Practice Sharing and The Role & Responsibility Of A BB or GB

Talking about best practice sharing. My point is very simple;
" I learn something new and I would like to share with you because I believe it is relevant to you. It is up to you to decide whether you are willing to open up your mind to consider or not, I will not force you to accept my idea as I believe you own the talent to determine what you need."
I only will take further action on you if you become a block for me or my team to move forward.
Otherwise, why shall I escalate to your management just because you don't pick my idea ?
Oh no no no... I won't do so... 


Monday, January 6, 2014

General Discussion On Lean & Six Sigma

“My management prefer Lean, not Six Sigma” or “My management prefer Six Sigma, not Lean”
“My issue is a Lean topic, Six Sigma is not able to handle my topic”

Do you ever receive such statement when dealing with Six Sigma or Lean topic ?

This is nothing new to me, obviously it is a misconception of Six Sigma and Lean. Not only the management level, I notice there are many certified GB and BB do facing the same situation.

Well, I always says that, Six Sigma and Lean is just a business direction or target setting.

Motorola aim for minimum or nearly zero defect rate by setting a target to achieve Six Sigma process capability.

Toyota aim for minimum operation cost  by setting a target to Lean down their operation process flow.

The whole idea behind Six Sigma and Lean is simple – minimize cost, maximize profit.

This is just a wish from the management, but we need an effective solution to make the wish come true.

Somebody from Motorola or GE develop a continuous improvement cycle call DMAIC, and the Japanese develop their approach call PDCA.

I m not going to talk about the tools in detail, anyway, for those experience in DMAIC and PDCA, you may found that the problem analysis tools use in two flow are basically the same.

Now the argument come – which is better then ? since I mention both DMAIC and PDCA are more or less same.

My point is, as a experience guy in continuous improvement, regardless is a quality issue, process capability issue, design issue or productivity issue, you must be able to decide a right tool to use to handle the problem. There is no one solution for all. Personally, I prefer DMAIC flow because this systematic systematically guide me define the problem statement correctly and understand process characteristic before we jump into solution development.

Therefore, the end in mind of continuous improvement activities is to achieve Six Sigma process level and Lean the whole business operation.
There is no such thing as “Lean Problem” or “Six Sigma Problem” .  Actually, both are “Business Problem” !

Saturday, August 3, 2013

CI Selection In Statistical Hypothesis Testing

A GB shows me her result of Hypothesis testing as below.
Based on her 85% CI, she conclude that P-value < 0.15, therefore it shows significant different between two group of sample data.

When I ask her, why she choose 85% as her CI, answer given to me was, if she choose the default value of 95% CI, she is not able to get a conclusion that shows significant different.

Two-Sample T-Test and CI: C1, C2

Two-sample T for C1 vs C2

     N    Mean   StDev  SE Mean
C1  10  5.0086  0.0680    0.022
C2  10  4.9627  0.0449    0.014

Difference = mu (C1) - mu (C2)
Estimate for difference:  0.045879
85% CI for difference:  (-0.009077, 0.100834)
T-Test of difference = 0 (vs not =): T-Value = 1.78  P-Value = 0.095  DF = 15

My question is : Is this the right way to manipulate result by playing around the CI ?
My personal opinion, ethically this is not a right way to manipulate the test conclusion by playing around the CI, and she set the CI beyond the practical limit of 90% ! What is the objective of doing hypothesis testing if we can manipulating the result by changing the CI ? might as well don't do !

In my past experience, I do face many cases where test result shows no different or marginal different, P-value > 0.05. I never advice my GB or BB to adjust the CI for the sake of getting a result of significant different, this is meaningless to me. 

However, we admit the fact, the most, we ask our self, are we still want to implement the solution that shows no or minor different ? what are the benefit we can gain ? if the answer is YES and we can justify our self to proceed, then we go ahead and do it. (handle it with special case)

As a professional Six Sigma practitioner, we should aware Six Sigma is a problem solving methodology that based on Data and Fact, we shouldn't abuse the Fact to mislead the people who do not aware about the result.


Tuesday, July 9, 2013

A Pull System For Packing Material Inventory Management

Few days ago I receive a request from the logistic manager, to think about a pull system to stream line her packing material inventory management.

Based on her description of current material management process and problems she face, I draft out a simple VSM I believe practical for her application.

In fact, I m planning this for her with a purpose. I hope, the system I proposed works in the packing material inventory management, so that this system can be expand for others material and slowly turn the whole warehouse inventory management by pull system

Below is the statement she wrote to me:

"The list below are packing material delivered direct from supplier to prod (Ship To Line, STL); i.e. without delivery to LOG Receiving. In my opinion, candidates for Kanban with supplier. Currently prod sup will inform planner (daily). Planner will inform supplier before 10am daily & supplier deliver aro 11am. No editing done by planner. We could work on direct info from prod to supplier. And looking at the long list, currently rather huge effort for supervisor to organize the requirement.

Pls give this a though. We meet up next week to discuss how best to proceed. Thnaks"