Is Globalization a Zero Sum Game or a Win-Win Situation?
When we discuss globalization, we often take into account the fact that both countries that are partners in trade benefit from the exchange. What this means is that a country A that specializes in a particular good or service can trade with country B that specializes in another good or service. In this way, both […]
Why and When to avoid Holding Inventories
Every business organization that is engaged in manufacturing, trading or dealing with salable products holds inventories in one form another. Inventory is held in the form of raw materials or in the form of salable goods. Since every unit of inventoried item has an economic value and is itemized in the books of account of […]
The Power of Gatekeepers Who Control Data and Information in a Digital World
How Access to Knowledge Has Been Restricted Down the Ages to the Present Times We live in a Digital World where the Virtual has replaced the Physical and where the internet and other technologies rule the world controlling and moderating every aspect of our lives. As the cliche that Data is the New Oil gains […]
Data Warehouse, Data Marts and Online Analytical Processing (OLAP)
Introduction One of the critical components in the information technology age is the data. Data is the source of all the information and information is valuable for decision making process. Decision support systems are developed to support executive management and relevant decision makers. In the modern era, there is large volume of information is available. […]
Materials and Resource Requirement Planning – Objectives, Advantages and Disadvantages
Introduction Success of an operation department of any organization is dependent upon an efficient production plan. One of the key essential of a production plan is material and manufacturing planning system. Material requirement planning plays a pivotal role in assembly-line production. Material requirement planning is a system based approach, which organizes all required production material. […]
The analyze phase is one of the most dreaded phases in the Six Sigma methodology. There are common assumptions made that this phase involves a lot of high level statistical analysis. No wonder that most trainings are scheduled before analyze phase. The Six Sigma team members want to refresh their concepts before they actually get down and get their hands dirty.
However, the fact is that Statistics takes the limelight involved. Statistical analysis is just the last stage of a series of analysis. This is so because the Six Sigma methodology focuses on verifiable facts and statistics can empirically confirm a statement and make an opinion of a fact. Here is a look at the different analysis that are carried out behind the scenes.
Example: A Six Sigma project team is trying to conduct the analyze phase on a process. Even though the vital few inputs have been identified in the earlier stage, there still will be hundreds of relationships that might exist between the data. How does the Six Sigma project team know, which relationships are significant and must be hypothesised? No company has the resources to waste on conducting every possible hypothesis.
In such cases, the preliminary analysis serve the purpose. It requires some expertise and common sense on the part of a Six Sigma team to actually identify the business problems. These problems are then converted to statistical problems and a solution is reached as per the fact based nature of Six Sigma methodology.
Your email address will not be published. Required fields are marked *
