Decision Intelligence (DI) is a field that combines analytics artificial, intelligence and automation to improve decision making across organization. This aims to take decision process more effective by providing data integrity, AI & machine learning models, focusing human understanding, optimization to the cause of action. This is used in many industries such as manufacturing, public sector, retail and etc.
Descriptive analytics focus on what has happened in the past.
• We can find the trend such as peak months of the last years.
Eg: November and December sales were x% higher than in other months.
This helps to identify the higher sales in the w inter months due to the holiday season but it doesn’t predict what will happen next.
Diagnostic analytics focus on past data and helps to understand why something happens.
• Company can go deeper into why those trends occurred.
Eg: there was a sales peak in last year December due to increase of marketing campaigns and promotions.
This helps the company to understand the reasons behind the successful sales but it doesn’t give insight about the future.
Predictive analytics forecast future outcomes by using historical data.
· Company can forecast what will happen in upcoming months
Eg: Based on the historical trends the company predict that the sales will increase by X% in December this year
For the decision intelligence this will provide the deeper insight since it helps company to forecast future outcomes and plan accordingly.
Prescriptive analytics providing the recommendations based on the predictive data.
· Company can decide the best action for future.
Eg: To achieve predicted X% of sales increase we recommend ramping up inventory for the most popular items start campaign in end of October increase staff at stoles and etc.
This doesn’t predict what will happen but provide the best recommendations based on the prediction.
When comparing the above types of analytics 'predictive analytics' contributes the most to the decision intelligence since it provides what will happen in future (eg: it will provide the forecast of future sales). Therefore, this helps the company to data driven decisions such as budgeting planning and etc.
Sanuja Godaarawa's post in ISO 9001 was marked as the answer
Lean six sigma is a process improvement methodology which used to improve the performance by systematically removing operational waste and reducing process variation. It combines Six Sigma methods and tools with the Lean manufacturing.
ISO 9001 is a quality management system which helps organizations to ensure that they meet customer and other stakeholder needs within the statutory and regulatory requirements related to a product or service.
Both ISO 9001 and Six Sigma use a process approach in applying their methodologies and below are some main differences of ISO 9001 and Lean Six Sigma,
ISO 9001
Lean Six Sigma
Focus
Focuses on Establish Quality Management System
Focuses on process improvement and waste reduction
Approach
ISO 9001 is more prescriptive and process-oriented
Lean Six Sigma is more flexible and data-driven.
Scope
Scope is broad.
Focusing overall quality management system of an organization
Scope is Narrow.
Targeting specific processes for improvement
Outcome
Primarily enhances customer satisfaction and compliance
Directly impacts operational efficiency, defect rates, and cost savings
Even though ISO 9001 and Lean Six Sigma are have some similar advantages and disadvantages, the way it creates differ from each other,
Advantages:
ISO 9001
Lean Six Sigma
Customer satisfaction
Enhances through consistent quality
Directly improves through defect reduction
Efficiency
Standardizes processes for consistency
Streamlines processes for efficiency
Documentation
Emphasizes thorough documentation
Relies on data analysis, less on documentation
Continuous Improvement
Regular audits and reviews
Ongoing projects and initiatives
Employee Engagement
Involves employees in quality processes
Engages employees in problem-solving
Risk Management
Focus on compliance and risk assessment
Reduces variability and defects
Market Credibility
Certification enhances reputation
Demonstrated efficiency boosts credibility
Disadvantages:
ISO 9001
Lean Six Sigma
Complexity
Lead to bureaucratic processes
Requires significant cultural change
Cost
Certification and maintenance can be expensive
Initial training costs can be high
Resource and Investments
Demand resources
Implementation can require substantial investment
Flexibility
Limited adaptability to market changes
Overemphasis on data can overshadow qualitative insights
Training Requirements
Ongoing training needed for compliance
Extensive training can be time-consuming
There are many situations that the organization can implement both ISO 9001 and Lean Six Sigma.
Comprehensive Quality Management System
Continuous improvement is one of the key points of ISO 9001 Quality Management System requirements. By implementing specific improvement projects will help to achieve the comprehensive quality management system within the organization.
Eg: Boeing, a well-known aerospace manufacturer, established a uniform quality management system throughout its business using ISO 9001. This framework helps the business satisfy particular quality standards, guarantee regulatory compliance, and maintain consistency in its processes—all of which improve customer satisfaction.
In parallel, Boeing uses Lean Six Sigma techniques to pinpoint areas where its assembly and production processes need to be improved. To reduce waste, reduce cycle times, and boost production line efficiency, they have undertaken a number of Lean Six Sigma projects. Because of this integration, the company is able to actively pursue continuous improvement while standardizing procedures, which eventually results in higher-quality products and happier customers.
Performance Measurement and Improvements
Organizations aiming to enhance their performance measurement could apply ISO 9001 to set up a systematic approach to quality management, while Lean Six Sigma can provide the tools for data analysis and process improvement.
Eg: Pistone automotive, a supplier of parts to leading automakers. They have used the lean six sigma tools to achieve 100% reduction in defects and ISO 9001's focus on standardization and documentation and this achieved substantial improvements in product quality and customer satisfaction
New Product or Service Launch
ISO 9001 provides a framework to establish and document quality standards, procedures, and policies while Lean Six Sigma helps in optimizing product development, reducing defects, and ensuring that production processes are efficient.
Eg: General Electric Healthcare (GE Healthcare) is a leading provider of medical equipment and digital solutions. GE Healthcare decided to launch a new line of portable ultrasound devices, targeting both developed and emerging markets. The goal was to reduce time-to-market, ensure high-quality standards, and meet diverse regulatory requirements across different regions.GE used six sigma ns lean tools (value stream mapping, waste reduction, DOE) for new product development and ISO 9001 to aligned all new product development processes with its existing ISO 9001 Quality Management System to ensure that each stage adhered to quality standards.
1-sample Sign test and the 1-sample Wilcoxon test both are non-parametric test. This is used to compare the median of the sample to determine whether there is statistically difference with a standard value.
1-sample Sign test
1-sample Wilcoxon test
Assumptions
Applicable when data are Non – Normal
Applicable when data are Non – Normal
The variable data are continuous.
The variable data are continuous.
Data distribution is non-symmetric and can be left skewed or right skewed.
Data distribution is symmetric.
Observations are independent.
Observations are independent.
Sample Size
More powerful with large sample size since the statistic is followed the binomial distribution and can be used for small sample size.
More powerful with large sample size
Power
Low powerful than 1-sample Wilcoxon test
More powerful than 1-sample sign test since it considers the magnitude of differences.
Outliers
Not sensitive to outliers
More robust against outliers
Limitation
Required paired data for the calculations but always it may not available.
Data taken from random samples from the population hence the correct sample may not capture.
Less powerful and it may not detect the difference between paired data.
Eg: Manager of the ABC insurance company shows that the median of new life insurance customers per day is 50. The agent of the same insurance company claim that it is more than 50. To analyze whether this is true or wrong we can use 1-Sample sign test and the hypothesis is as follows.
Ho: median of new life insurance customers per day = 50
Ha: median of new life insurance customers per day > 50
In a term text of grade 10, it is required to check the median marks for the mathematics is greater than 70%. Then we can apply 1-samaple Wilcoxon test by selecting few marks randomly,
Ho: The population Median value = 70%
Ha: The population Median value >70%