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Showing content with the highest reputation on 10/09/2020 in all areas

  1. 1 point
    In any hypothesis testing we have to decide on the level of significance which is denoted by alpha. This is important as failure to choose correctly null hypothesis can cause Type 1 error. IF α is small - There is lass chance of incorrectly rejecting a Null hypothesis (H0) Since the power is low this decreases the chance of detecting an effect if one exists IF α is Large - There is a higher chance of incorrectly rejecting the Null hypothesis (H0) Since the power is high there is high chance of detecting the effect To Select α for a Hypothesis test we need to understand which mistake will be worse ,finding an effect which does not really exist or not finding an effect that does exists . Examples where α is Small- 1. Buying an expensive machine as the cost might be very high and we might set a very low α so that we are able to determine if there is any effect on productivity post buying the new machine 2. Fitting a new car model with a new engine Vs a old one 3. Changing the breaking system in an elevator with a new mechanism which is more economical. This can have serious impact on safety if the machine fails to work 4. Changing a bearing in a jet plane with new ones which are less expensive 5. Using cheaper building material for construction to bring down overall cost of the project. In order to save money if the company replaces the material there can be serious implication to the lives of people 6. New Iron & steel used in a dam construction project from a different vendor who is offering a discount 7. New material used for GAS pipeline Vs the old one which can reduce the cost. If the company does not test this adequately then there can be major catastrophe and company can be answerable to government & public Examples where α is Large- 1. Checking the effectiveness of a new delivery model for a chain of restaurant which is already getting customer complaints due to delivery delays 2.A new Sales strategy for a firm which is making losses due to low sales 3. A decision for Digital strategy implementation for a company which is on verge of bankruptcy 4.A new repair allocation process for a Insurance company which is loosing customer base due to the high claims life cycle time The above are some examples which will help to decide whether to take a higher or lower α value.
  2. I observed that the scope of six sigma has increased it is now applicable in many industrial sectors. When Bill Smith created this methodology his main focus was defect reduction and improvement which brings excellence and process improvement, later on Quality formed the core of other methodology/framework too. I have seen that the approach of employees toward quality management has not yet changed, they still consider this as the job of quality unit, as for them quality means compliance, reporting, QMS manual and most importantly Audits. I found that organizations are spending good amount of money in quality related training/workshops/paperwork etc. but still are not successful in changing the approach of individuals. At high level, every organization’s policy talks about quality and its importance but at ground level due to fixed processes, departmentalized structure it become a task of small number of people, like managers and specifically of those who belongs to quality department, since it’s their job. Induction program- By definition an induction program is an important process for bringing staff into an organization. It provides an introduction to the working environment and the set-up of the employee within the organization. An induction program is part of an organizations knowledge management process and is intended to enable the new starter to become a useful, integrated member of the team. But I believe now organizations have a need to adopt a new approach of induction program: Organizations should provide Process Excellence/Quality training to each and every employee at the time of induction, this training they can design as per the requirements of their LOB (Line of Business). Also when induction of an employee gets conducted at that time we can tell employee that they are suppose to share their views (positive or negative) after six months from now about quality of process/operation to which they belongs (preferably through a presentation) so that this training of quality not become just a training and they feel involved with the things they have learned. This kind of treatment at induction will make employee responsible for his own quality as well as quality of his team and organization. Why this should be done at induction program because when we start with induction: 1. The new employee will feel himself linked with the quality department. 2. This will make new employee feel that he is responsible for the quality of operation to which he belongs. 3. This will convey a message to employee that organization has a serious approach towards quality. This approach will bring mutual benefits and this also links with the high level objective of each and every organization that is “alignment of individual objectives with organization’s objectiveâ€. Now the question comes since induction is for new employee what will happen to those who are already working? For this we need not to do anything but to ask them to attend this “Quality session†which we are conducting for new employees and they can join this from there and then. I believe that each and every individual should feel himself responsible for quality and there is a need to make quality a routine habit rather than an event.
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