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Showing content with the highest reputation on 09/07/2017 in Posts

  1. 3 points
    We should not see two statements as mutually exclusive statements. Both of them are correct in different contexts. We need to measure things to manage them effectively. Especially we need measurements for trends, analysis and performance reporting. (Peter Drucker) However, if any business rely exclusively on their performance metrics and assume everything hunky dory some surprises are bound to happen. Let us consider an operations where the SLAs are always Green. If the operations head assume that the customer is super happy with the service and do a CSAT- it may throw some surprises. This we call it as watermelon effect. Where SLAs are Green and the CSAT is Red. The other example can be a product sales exceeding the targets for several quarters. If the business assumes too much of customer loyalty towards that product and doesn’t innovate enough- they are in for surprise when one fine day a better product enters the market. What we cannot measure in the above examples (and which is important for a Business) is Human behaviors, Relationships, Customer Requirements and Expectations. (Deming) So we should have good measurements in place to manage the Known- Knowns. At the same time we need to cognizant of the fact that some unknowns/unstated needs exist in the business which we have to manage even without Metrics.
  2. 1 point
    Peter Drucker and Deming both are correct in their own context. Analysis of data is essential to get a snap shot picture of the current situation. This is a basic step to assess the current level of performance of a CTQ parameter and helps in its improvement. But, what Deming means is that the business is much more than 'data'. Data or metric represent just a small subset of the whole picture, actual business depends on many other things which are much more important than data. For example many a times most powerful decisions don't emerge from meticulous 'data analysis', they come from smart understanding of the business environment or sometime even from 'gut feelings'. Now a days lot of emphasis is given to the management of human emotions, which, no doubt, is utmost important but at the same time can't be measured, but still to be managed!
  3. 1 point
    Albert Einstein said "Not everything that can be counted counts and not everything that counts can be counted" I believe that measuring outputs like performance, efficiency and effectiveness is a must in making informed decisions. However we should not limit ourselves to what we can see or measure at this point in time rather keep open to possibilities which are beyond our imagination. It is not about ideas we cannot operationalise. It is about concepts that we don't yet have. Practically, it should be a balance between Peter Drucker's and Dr. Deming's statements.
  4. 1 point
    As per the quotes: If you can measure it you can manage it. It is wrong to suppose that if you can't measure it , you cant manage it. The most important nos. Are unknown and unknowable. View: 1st quote by Peter Drucker is a direct statement which simplifically says that if you have known facts and figures you can manage the situation. The quote is not a contradictory to the other one. However, as per the other quote,what if the fact and figures are not known or unknowable, the quote by Dr Deming is an indirect one which states that sometimes the data remains hidden or discreet. To measure and manage the situation we can always have analytical methods to take out the hidden fact and figures. Now, as both the quotes are equally valid it can be said as measurement is always essential for good management. Without measurement or analysis, facts and figures will be unknown, we cannot act on what is right. In organisation there are several CTQ, some may be on priority. So to manage it is necessary to know the CTQ. Measure and manage is always a efficient method.
  5. Necessary - X is a must for Y to occur. Y cannot occur unless X is present. Sufficient - X is enough to cause Y. However, Z may also cause Y. Scenario 1 - Cause is necessary but not sufficient. X occured at some time for Y to have occured but alongside other factors. In this case, other causes that could have caused Y when combined X have to be found. E.g. there was a case of cars catching fire if hit from behind when the right indicator was on. Having the right indicator on was necessary but not sufficient for a car to catch fire. It had to be combined with the other factor of being hit from behind in order for it to catch fire. Hence, we are looking for critical combinations of other causes with this X. 2. Cause is sufficient but not necessary - means that X on it's own can cause Y. But this is not the only cause leading to Y. It is required in this case to make sure that other causes are also found out, else the problem may remain unresolved even when X is fixed. E.g. not having enough water in a day can cause headaches. But so can not eating on time. Even if you keep having water, but not having food could.still trigger the headaches. 3. Neither sufficient nor necessary - Even if X happens, Y will not occur. In this case this cannot.be deemed as a root cause. Solving for this X will be futile. Other causes ought to be explored in order for the problem to be solved. E.g. an executive assistant not having an app for calling a cab for her boss is neither a reason sufficient to not get a cab, nor is it necessary. A cab can still be called via a phone call, by asking someone else to order, or booked through a website, by hailing from the street. 4. Both sufficient and necessary - must be solved for as whenever X occurs Y will occur. If this is not solved, you have not resolved the problem
  6. Means Approach for problem solving Case 1 A cause may be necessary but not sufficient for a problem to occur. - This cause is must for problem to occur but cannot cause the problem alone. - There will be additional cause/s which are necessary & interaction of these causes becoming sufficient for problem to occur. - Find out other cause/s which are necessary for problem to occur. - Check which cause out of these is easy to eliminate & improvement made is easy to sustain. - Eliminate that cause to solve the problem. Case 2 A cause may be sufficient but not necessary for a problem to happen - This cause can alone cause the problem to occur - But there may be other cause/s also which can cause the problem to occur even in the absence of mentioned cause - Find out other cause/s which are sufficient for problem to occur. - Find out which cause is creating the problem most. - Start working on that cause. After eliminating the first one take next cause which causes the problem most & so on…. Case 3 A cause may be neither sufficient nor necessary for a problem to occur This cause is not the main cause for problem to occur - Find out the cause/s which are necessary for problem to occur. - If there is only one cause eliminating it will solve the problem. - If there are more than one necessary causes use approach mentioned for CASE 1. - If there is no necessary cause, find out significant cause/s & use approach mentioned for CASE 2 - If there is no significant cause also check interactions of probable causes & find out which interactions become significant. Then try to eliminate the easy to eliminate causes from each of these interactions to solve the problem. Case 4 A cause may be both sufficient and necessary for a problem to occur. - This is the main root cause for the problem. - There may be other root causes which are necessary for problem to occur but they will not able to cause the problem in the absence of this cause. - Eliminate this cause to solve the problem.
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