Leaderboard

By and large, we come across situations where we favor the mean value of the outcome of a process (central tendency) to be focused around a specified targeted value with as less variation as possible (dispersion). There are situations where the variation assumes relatively higher importance than the central tendency; mostly because higher variations are more intolerable than some shifts in central tendency. Interestingly, there may be certain situations where variation or controlled variation is advantageous as well. Study of Process Potential: The process potential index Cp is used to study the variation, or spread of a process with respect to specified limits. While we study process potential, we are interested in the variation and not in the central tendency. The underlying idea is that if the process is able to maintain the variation within specified limits, it is considered to possess the required potential. The centering of mean can always be achieved by setting adjustments. Or in other words, if Cp is not satisfactory, Cpk (process capability) can never be achieved, since Cpk can never exceed Cp; it can at best equal Cp. Many examples where the variation is generally considered unfavorable to the outcome: 1. Analysis of Variance While evaluating whether there is a significant difference between means (central tendency) for multiple sets of trials as in ANOVA, the variation between sets and within sets are compared using F tests. Thus in such situations, the variation comparison assumes high importance. 2. Relative grading systems For many competitive examinations, the concept of ‘percentile’ is used, which is actually a relative grading system. Here, more than the absolute mark by a student, the relative variation from the highest mark is more important, thus the relative variability becomes key decisive factor. 3. Control chart analysis While studying a process variation using a control chart, first the instability and variation are given the importance. Only if we have control on these parameters we will be able to meaningfully study the ‘Off-target’ i.e. the central tendency. 4. Temperature variation in a mold While performing certain compression molding process, temperature variation across different points on the surface of the mold does more harm than the mean temperature. Here the mean temperature is permitted to have a wider tolerance, but the variation across mold does more warping of the product. 5. Voltage fluctuations Many electrical appliances get damaged due to high variation (fluctuation) in the voltage, although the mean voltage (central tendency) is maintained. Controlled variation is favorable: 1. Load distribution in a ship While loading a ship the mean value of the load can vary, but the distribution of the load is more important to maintain the balance of the ship on water. 2. Science of music Those who understand the science of music would agree that more than the base note, the appropriate variation of the other notes with respect to the base note is extremely important to produce good music. Some examples where variation is favorable: Systematic Investment plans (SIPs) take advantage of the variation in the NAVs to accumulate wealth. Here even an adverse shift of the central tendency is compensated by the variation! Law of physics states that Force = Mass x Acceleration (F = ma). Thus, if we consider speed as the variable, it is the variation of speed that decides the force and the mean speed (central tendency) appears to have little relevance.

Those who have already heard this very old joke must be old themselves. A tourist passing by a picturesque lake feels like having a refreshing bath inspite of not knowing swimming. To check, he asks a local relaxing on the bank, “Hi, What is the depth of this lake”, to which the local casually drawls, “Around three feet”. Reassured, the six footer tourist happily descends into the lake and is shocked to feel himself sinking slowly in an apparently bottom-less lake. With an effort, he screams, “You said three feet, but I am sinking”. The guy on the bank stops chewing the grass in his hand and says, “The average depth is three feet. At the point you are in, it is 20 feet”. Apart from the above apocryphal situation, any one of the following situations or a combination of two or more of the following situations could also see variation having more relevance than central tendency. 1. Relatively easy target Sometimes, perhaps due to the technology used, the target centre in a process would be relatively easy to achieve. There would not be any effort required to meet the target. Further improvement in performance is possible only in reducing variation. Therefore, the focus now shifts to minimising the variation. 2. Narrow specification range For some processes, the target specification range could be very narrow. With such a low tolerance, variation needs to be very low. So the focus changes to minimize variation. 3. Many processes upstream based on the output If based on the output of a process, many upstream processes are to be run, the focus would be to restrict the variation of the process output as planning and running the subsequent processes would be easier and less expensive if the inputs are within control. If the output of the process under question were to vary beyond control, then there would need to be some rework and / or scrap, both of which are wastes, before starting the next process. This would repeat for every subsequent process. To reduce these wastes, the only option available would be to ensure that the process spread is minimal. 4. Use of less robust machines for further processing If the machines further processing this output are not very robust and require their inputs to be within a small tolerance, then the focus would be on reducing variation rather than on central tendency. If control of variation is ignored, the machines in the next process will not be able to handle the input and either breakdown or produce sub-optimal output resulting in waste. 5. Batch Processing When the next process is a batch process and the settings are for the entire batch which requires inputs to the batch to be varying within certain specifications, the focus will be to contain variation because as long as the input variation is within control, the average would not matter as the settings can be accordingly changed. If variation is uncontrolled, then the batch may have to be split into two or more batches and processed under different settings which would involve additional cost and delays.

Question: A Sponsor is someone who funds Business Excellence in a company, a strategic business unit or a function. What are the most important qualities desired in a Sponsor to ensure that Business Excellence will thrive in the organization? Project Sponsor is usually a senior most person or sometimes the project manager himself or even a chair person. Resource planning is an important activity in project management. Once the resources are planned, the training takes place if the expertise skills lack. But usually, mapping happens according to the skill set of the team. Success rate of the project depends on the skills. Project sponsor is also not exempted from this. A technically sound Project Sponsor should possess Problem identification and decision making skills, motivating and building cultural change in the organization as change agent, Communication both upwards & downwards, proper guidance / direction from them. If the project sponsor is not willing for the project in the beginning itself, at any point in time, the project may fail. Hence it is important that the project manager gets the project sponsor involved in to project identified and aware of the milestones studied. Most importantly select a sponsor for project or else, the project suffers. There are few top qualities that the sponsor should have in order to success the project. They are discussed as follows. 1. Deep insight on the problem: Sponsor should be in a place to clearly understand the problem which has to be solved. He / She should give an answer to questions such as “What is the problem? New one / Old ? How intensive the problem is? Who created it? What is the impact? “etc. The problem may be existing problem in the organization or opportunistic approach for predictive problem. 2. Deep diving into root causes: Sponsor as part of all the milestones, he should be able to collect all critical Xs Which impacts the output(Y). Identify the real root causes but not the symptoms. He should judge the analysis relating to symptoms / real root causes. For E.g. The TAT for discharging patients is around 12 hours. If the project team works on reducing the TAT from 12 hours to 4 hours as per the standard, then automating the process may be a feasible solution. But Without identifying the VA & NVA, without eliminating NVA, automation is just a wasteful activity though it adds value to the organization. It only addresses the symptoms but not the root causes. Hence process re-engineering along with automation is the best solution. 3. Decision making: When a team selects a project, it is easy for them to solve multiple issues at one go with a proposed solution. If the project has to increase its scope / budget / time, a sponsor should decide considering the business requirements. Sponsor should ensure the project is focused on arresting the bleeding issues and not widely taking up all, because a team can’t do all at a time. 4. Implementation of solution: Sponsor plays a major role in communicating he solutions/ changes proposed upwards and downwards. He acts as a change agent. He should clearly envision the problem, root causes, how solution helps the team, how issues will be solved if implemented, what would be the benefit, to the management. 5. Basic needs, performance & Excitement needs: Sponsor needs to have this accountable to company. He should know what good enough is for the project, for the organization, for the customer. Good enough is nothing but you have taken the company’s needs, translated into requirements / CTQ and for which solution is proposed. Customer’s needs are very important while in starting and completing a project. Without delighting / satisfying the customer, a project is again not successful. Also a sponsor is cautious enough so that the organization’s resources are not wasted and should not over deliver / under deliver the solution. 6. Build the team right: Sponsor should build the right team with right people, right skills, right time, etc to deliver the project deliverables. He should possess a strong relationship among the team to run the project project. He should trust the team and vice versa. He should appropriately select the team and stakeholders with the required skills. Inexperienced or new manager can’t take up the lead position, which fails the project. It doesn’t mean the new guy can’t lead. It depends on the nature of the project. Most of the time, when a project fails, it shoulders the new project manager’s/ team members. Always make them accountable for the project success. Make sure resources are rightly allocated. Shouldn’t be over staffed or under staffed. Make sure you remove if any non-performers are there in the team. This is always helpful for the success of the project. 7. Accountability: Make sure as a sponsor, you make the project manager / team accountable for the success / failure of the project. Regularly meet up the team. Get the updates. Provide suggestions if required. Always keep up the timelines specified. Ensure the team is focused on the project scope and goals, timelines and deliverables. A relaxed Project sponsor will always end up with the failure of the project. 8. Critical X’s Vs. Non Critical: Sponsor are the one who has to keep engaged on the issues, and the devise a strategy onto the issue. List down all the factors causing the problem, prioritize the X’s, stay focused on the critical X’s rather focusing on the non-critical ones. Sometimes proposed solution may be just enough to solve the noncritical issues. Hence sponsor should cautiously utilize the team. Being available to the bigger issue itself is a biggest help that a sponsor can do to his team. You ensure that the team is accountable for each and every task that they do. 9. Mentor / Influencer: Best sponsors are not those who sits just into office and take updates once a while. Best sponsors get himself into the issue along with the team, identifies the root causes and devise a strategic plan to arrest the issue. He takes risk in trailing certain solutions. He influences people to adapt to the change prescribed. Being available is tehe best help that he can provide. 10. Trial and error method: Best sponsor is the one who makes a thoughtful decisions through tough problems along with the team. He is not feared of any problems. He trails the experiments and proposes a best solution. He allows risk to become a feasible solution. 11. Strong controls over the completion of the project: Sponsors always create a governance plan along with the solution to be implemented. He implements and sustains the solution in order to completely eradicate the problem from the organization. Sponsors communicate effectively the completion of the project as well being the change agent, creates a cultural change in a positive manner. 12. Pull the plug / Accept the failure: Sponsor should also accept the failure not only success of the project. Uncertainty of the project to be accepted and motivate the team. Summary: Sponsor plays a vital role in business excellence model. He should be open to all challenges and active. He should be a good communicator, decision maker and strategist. He should also allow risk and help the team learn and unlearn. Sponsors along with the team can definitely make a difference between success and failure of the project. Thanks Kavitha