Globalization and the Trickle Down Theory: Does it Work ?
The underlying premise behind globalization is that the transfer of wealth from the developed countries to the developing countries would eventually result in a scenario where those at the bottom of the ladder in the developing countries would benefit from the wealth flowing into their economies. The theory behind this is that if a Billion […]
Operations Scheduling and Workplace Planning
Introduction Scheduling and workplace planning is the final step in operation planning and design. Operation’s scheduling and workplace planning is implemented during transformation of input to output. Scheduling deals with production of required quantity of product within the required time frame. Workplace planning deals with allocation of resources with priority to work job with first […]
Repetitive and Process Manufacturing
Conventional shop floor control functionality of an ERP system, for the most part, is suitable for discrete manufacturing. However, during last two decades, interest surged for Just in Time manufacturing technique which is suitable for high volume repetitive manufacturing. New functionalities in the ERP system were developed to support repetitive manufacturing so as to maximize […]
How Countries Can Reduce Tax Evasion?
Tax Evasion vs. Tax Avoidance Tax evasion and tax avoidance are often used interchangeably. However, there is a huge difference between the two terms. Tax evasion is a criminal activity. In most countries, tax evasion would attract a jail term. Evasion is usually done by not reporting income or overstating expenses. However, tax avoidance is […]
Why Cities are the Future and What this Means for Investors and Businesses
Cities are the Future of the World The future of the world would be in cities and urban and semi-urban regions and hence, it is better for governments, businesses, investors, and citizen groups to prepare for an urbanized world where sustainability of the urban modes of living and working would increasingly be strained by inadequate […]
Measurement Systems analysis is an integral part of the Six Sigma project. No matter what project is being conducted under the Six Sigma methodology, this part of the process can never be omitted out and the successful results still be obtained. Below is an explanation about what makes Measurement Systems Analysis such an integral part of the Six Sigma process.
Six-Sigma is Data Driven: The entire Six Sigma philosophy is data driven. Instead of basing decisions on subjective opinions which can be different in case of different managers, the Six Sigma philosophy proposes basing results on measurable facts. This is the core principle of Six Sigma that makes it the powerful tool it is.
Measurements Forms the Core of This Data: The facts that are often used to reach conclusion and adopt changes are measurements. There is a famous management saying which says, “That which gets measured gets managed”. The measurements which depict the levels of vital inputs, desired outputs and process behaviour are captured by measurements.
Measurements are Not Always Accurate: However, there is a basic problem with measurements forming the core of analysis. There is no guarantee that measurements are always accurate. In fact, under normal circumstances, almost all measurements have some kind of error. In case of Six Sigma projects, it becomes important to quantify the error, so that the management can take corrective action accordingly.
Example: Suppose, you were perusing a weight loss program. The first day you check your weight it is 76 kgs, the next day it is the same and after a week too it is the same. You would probably abandon the program!
However, if one sees the problem carefully enough, maybe you were using an analog scale which does not tell you the exact variation is weight. Possibly on the first day your weight was 76.9 kg and after a week, it has come down to 76.1 kg. Now, should you abandon this program? Or should you fix your measurement system so that it gives you measurements that you can base your decisions on?
Wrong Measurements Can be Wasteful: As seen from the above example, faulty measurement systems are capable of derailing process improvement initiatives. They are capable of misleading the managers to make wrong decisions both ways. Managers may abandon successful initiatives or may pursue unsuccessful ones.
Since Six Sigma projects are focusses on error elimination they rely on prevention rather than cure. They check the measurement systems to ensure that there are no faults and that their tools will indeed lead them in the right direction.
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Characteristics of Data – Central Tendency and Dispersion
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Steps Involved in Conducting a Measurement System Analysis
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