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Q2 2012
Facts versus “the loudest voice in the room” – Pt.1

Insufficient facts always invite danger.                                                           

                               ~ Mr. Spock, Star Trek: Original Series “Space Seed”

 

During the last few Quality and Business Excellence Programs here at ASQ Vancouver, we have been fortunate to have some excellent guest speakers.  These experts in their field have discussed the topics of Six Sigma, Lean and relying on fact-based decisions for our process improvement efforts.  As our favorite pointy-eared Vulcan likes to say, it’s always best to rely on logic and facts.  This is one of the main reasons that I like the DMAIC process of the Lean Six Sigma (LSS) methodology. 

For those of you that may be unfamiliar with Lean Six Sigma, very simply, it is a combination of eliminating waste from the process (Lean) utilizing fact-based, statistical analysis (Six Sigma).  The goal of Six Sigma is to get to the magical number of less than 3.4 defects per every million opportunities.  Needless to say, this is a stretch goal for most organizations! 

In terms of DMAIC, the acronym stands for the 5 steps in this methodology: Define, Measure, Analyze, Improve and Control. This allows teams to logically (there’s that word again) work their way through a process improvement effort from beginning to end and ensures that they are not moving ahead before covering all their bases.  Each step is very important and should never be skipped or rushed. Let’s take a brief look at each phase. 

‘Define’ involves exactly what it says: Defining the problem you need to fix.  While this sounds easy, it’s often the most difficult, but most crucial, component.  This is the start of where emotion and “the loudest voice” can derail a project before it’s even started.  We’ve all been in the meetings where someone will say: “This is our problem, let’s fix it! Alright, everyone go fix it…Move, move, move!” Well, we need to really understand the problem first to be able to tackle it quickly, accurately and to ensure we are actually fixing the right problem!  Have we quantified the problem properly?  And no, saying “it happens all the time”, is not quantifying it.  When did the problem start?  What’s it at now?  What was it at before? What do you want it to get to?  In addition, it is crucial to do a Voice of the Customer and a Voice of the Business analysis.  We want to make sure that we are aligning our improvement efforts with the goals of the business and what will fix the pain points our customers are feeling.    

This reminds me of a discussion our team had at the start of a recent potential LSS project.  The sponsor had indicated customers were not able to get through to their dept. when calling on the telephone.  Customers were said to be always complaining about this issue and the solution, the sponsor said, was to just get a new phone system (aside from already providing the “solution” before starting the project – a big no-no, the phone system would be a multimillion dollar investment).  After discussions, it was determined that a Voice of the Customer analysis had not been done – it was all based on “feel” and anecdotal feedback.  A quick survey of customers was then done and it was revealed that the customers had no issue with the time it took to answer the call, but did have issue with the long time it seemed for the clerks to resolve their problem.  This often delayed payment when reducing payment turnaround was a strategic business goal for the year.   If time had not been taken to look at the facts, we would never have aligned this project with both customer and business needs…and potentially wasted a lot of money on an unnecessary replacement phone system and actually improved very little. 

‘Measure’ is simply gathering reliable data to understand the current state.  This is where that focus on facts and data really shines – it cuts out the noise of assumptions and suppositions.  Also, one of key word here is reliable – the data should be dependable and repeatable (preferably hourly, daily or weekly).  If the data is not reliable or easily available, the project will be more difficult to manage and take longer.  In the Measure phase, you definitely will be looking to map out the current process, usually as a Value Stream Map.  Here is where you’re going to be working on Key Process Output Variables (KPOVs) and do some Capability Analysis.  Another important part of Measure is the development of Operational Definitions – these are clear and specific definitions of our measurements.  These are key to ensuring that everyone is one the same page and agrees that we are measuring what we say we are measuring (ie: everyone might have a different idea of what a “return” is). 

In one project, I got to see the benefit of fact-based decision making in the Measure phase. This was accomplished by seeing how data can be used to disprove assumptions just as easily as prove assumptions.  In this case, we were looking at returned product and the team members from one region felt that another region “always” had the most returns and were the sole reason why the overall return rate was so high.  Well, it turns out that we had some really solid data (that the team agreed was valid) as it could be pulled daily and in great detail.  We ran some statistical analysis and were able to show that not only was that region not the worst but they actually had the lowest return rate!  In fact, the region the team members were from was actually the one with the highest returns! Needless to say, the team was impressed by the way we were able to disprove this assumption and it saved us from going after something that wasn’t really impacting our project.  In addition, we went to this region to see what best practices could be shared and gained more benefit from the project! 

Next quarter, we’ll continue with our look at Analyze, Improve and Control as we dig deeper into fact-based decision making.
 

 


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