Tuesday, November 4, 2008

Using X-ray Vision to launch Lean Six Sigma

Key Thought:

A short article taking the analogy of x-ray to start a Lean Six Sigma initiative. 80% of a survey says they failed to achieve their anticipated value!

Summary:

X-Ray Vision is performed by a small group of black belts consisting of 3 methodology common to other forms of process improvement.

1. Value Stream Mapping - team scan the enterprise and maps its processes to identify the biggest opportunities to cut costs by reducing wasted time and materials

2. Benchmarking - processes measured against benchmarks and establish performance improvement targets

3. Prioritising - team determines which improvements will yield the greatest results.

Only after this, does the company starts the traditional steps in Lean Six Sigma, Define, Measure, Analyse, Improve and Control (DMAIC).

The X-Ray process expose hard-to-see problems.

By reducing running costs and improve efficiency, a company will freed up much-needed capital and capacity. A company will then able to [pour these resources into innovative new products that reinforced its competitive strength.

Tips to initiative Lean Six Sigma (LSS)

1. Put strong players on the team and train them thoroughly.

2. Check progress regularly and establish a few simple success metrics.

3. Refocus the team if needed.

My Comments:

The value of LSS in companies is without a doubt. Nevertheless the high failure rate is a deterrent. If we do this, we need to be thoroughly prepared. We can certainly do with a more efficient operation to free up capital which we can invest in better technology and space.

Reference: X-Ray Vision by Klaus Neuhaus and Peter Guarraia, MIS Asia, May 2008, page 48-51.

Monday, November 3, 2008

Eight levels of analytics

Key Thoughts:

Using a categorization levels helps us identified where we are in terms of sophistication and advancement with analytical capabilities(or degree of intelligence).

Summary:

SAS defines the level of sophistication as follows:0

1. Standard Reports - I think we are very familiar with these ones

2. Ad Hoc Reports - we do a lot of this, but then forgets to follow up.  It also means disturbing our analyst to drop everything and tackle this for us.

3. Query Drilldown (or OLAP) - you can do some discovery on your own.  We have build some of these in Excel.

4. Alerts - we are not there with this one

5. Statistical Analysis - this we need to learn in the upcoming Business Forecasting Masterclass

6. Forecasting - the hottest development in this market space.  Dare we be laid back and not find out more.

7. Predictive Modeling - the holy grail of analytics?

8. Optimization - Go one better than predictive.

 

My Comments:

The levels to achieve if we want true business intelligence.  Go to the link and contemplate the questions and example given for each question for a true review on the state of analytics in your area.

Reference: http://www.sas.com/news/sascom/2008q4/column_8levels.html

p.s. you'll need to register to sas.com to access the page