Business Intelligence and Analytics

Business intelligence can be considered to be what’s and how’s of past occurrences, while business analytics assesses the why’s that involves causality investigation. The 9-step Integrated Enterprise Excellence (IEE) business management system provides a framework for integrating business intelligence with business analytics.

In step two of the 9-step IEE system, a value chain integrates statistical 30,000-foot-level predictive performance measures throughout an organization with their associated processes. An IEE value chain considers what’s and how’s (i.e., execution of processes) of past occurrences for this business intelligence creation.

Step three of the 9-step system, analyzes the business as a whole looking for the why’s of occurrences. When causality occurrences are uncovered, this information can lead to development of targeted improvement strategies (step 5) which leads to goal setting for functional 30,000-foot-level metrics (step 6) and then process improvement efforts (step 7), which benefit the business as a whole.

Data Collection Concepts for Projects, Process Control, and Scorecards

Join Rick in this webinar, where he will share lessons learned from years of analysis and coaching improvement projects. We will discuss the different considerations involved in the collection of representative data to make a decision, whether it is for a LSS project, a process control initiative, or the creation of enterprise performance scorecards. The goal is to effectively collect the smallest amount of data to make the decisions that are needed. This webinar will provide you with some of the rules and guidelines that will allow you to collect data on a process in an optimal method for the purpose you need. It is not true that more data is always good. You will learn how different sample periods and different sampling plans will be able to improve your ability to support a decision with a minimal amount of data. The topics covered will benefit practitioners in all environments, from large automatically collected data sets, to ones where you must manually collect any data you will need.

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AQL Process (Acceptable Quality Level) Issues And Resolution

When determining an approach for assessing incoming part quality, the analyst needs to address the question of process stability. If a process is not stable, the test methods and confidence statements cannot be interpreted with much precision. Process control charting techniques can be used to determine the stability of a process.

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Enhanced Risk Management Plan in an Overall Business Management System

Organizations need a systematic approach for risk containment when quality, delivery, and design product and service issues occur. Such a system should also help them to recover quickly from errant decisions made by executives, operations personnel, and the quality department. This article describes how well-chosen metrics can help mitigate these risks if the measurements contain good tracking and reporting methods that lead to the most appropriate action.

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Weibull Distribution Example: A Transformation with Surprising Result

Transformation of process data to achieve normality seems like magic, but it is not. There are a lot of reasons that specific transformations make sense and should be used, such as a lognormal transformation of standard deviations and of time data. But, when it comes to the Weibull distribution, there is no logical or inferential information that provides any guidance on a transformation to normality, until now. Rick Haynes has found a relationship between the Weibull distribution parameters and the optimal Box-Cox transformation lambda value. Through the use of the @Risk simulation program and Minitab, this article walks through the generation of an equation to predict a lambda value.

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Time Series Analysis and its Applications

Time series analysis and its applications is a topic that practitioners can can much when addressing process improvement efforts. I was talking with a Master Black Belt candidate, in the process of being certified, who asked about other statistical tools that a practitioner should learn.  Since the candidate is in a company that has a

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Enhanced How to Conduct Hypothesis Test Roadmap

At Smarter Solutions, our Lean Six Sigma (LSS) Black Belt (BB) and Master Black Belt (MBB) courses cover analysis phase tools well beyond the new body-of-knowledge (BOK) published by ASQ. Of course we teach the standard, one variable-at-a-time tests: t-tests, f-test, chi-square test, simple regression, and one factor ANOVA. But as Lean Six Sigma has become a commodity that everyone is teaching, the BOK has become watered down. Our belt programs do not cover the non-parametric tests until you reach the MBB level training. Smarter Solutions chose to teach the distribution theory along with the one variable-at-a-time tests in order to show the belt that the non-parametric tests are not really needed. When a BB or MBB learns of these new tools, he will need an advanced tool selection diagram until he becomes familiar with the tools. This advanced tool selection diagram is attached at the end of this document. You should be able to use this decision tree to answer the questions and identify the proper analytical tool to apply. It also has the Minitab Commands needed to open the tool menus.

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Root Cause Analysis Methodology in an Enhanced Business Management System: Description and Webinar

The Lean Six Sigma toolset is not very efficient in addressing root cause identification for an single event (special-cause event) or problem, it works best to address chronic (common-cause problem) issues. That should not imply that there are not Lean Six Sigma tools that can be used to support a root cause analysis or corrective action effort. In this webinar we will show you a set of Lean Six Sigma tools that can be applied to these efforts, which may seem familiar to an RCA practitioner but they have different names in Lean Six Sigma. We will work through a general corrective action event and show how the Lean Six Sigma practitioner can use their skills to quickly determine the root causes in a method that everyone will understand. Take-aways: – Identify the Lean Six Sigma DMAIC tools that are beneficial in a RCA; – Describe how the use of the DMAIC tools overcome one of the great weaknesses in RCA.

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Enhanced Predictive Analytics Tools for Scorecards and Business Improvement

Business organizations need a business management system that has predictive scorecards, which encourage behaviors that benefit the enterprise as a whole. Common place red-yellow-green goal-based scorecards can lead to silo improvement efforts that result in much firefighting. In addition, traditional metric reporting that consists of a table of numbers, pie charts, or stacked bar charts are not predictive and provide only a snapshot of the past with no assessment of what is expected in the future. Also, variance to metric goals can lead to playing games with the numbers, which can be destructive to the business as a whole. The balanced scorecard approach for choosing metrics after strategy selection can lead to subjective metrics and measurements that are not long-lasting and are a function of economic and leadership changes. Described is an overall corporate performance management (CPM) system where organizations can analyze their predictive value-chain metrics collectively with other considerations, such as the current business-economic environment and the Theory of Constraints (TOC), to develop strategies.

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Design of Experiments (DOE) Data Analysis: A Development Example

Design of Experiments (DOE) can be used within a Design for Six Sigma (DFSS) Define-Measure-Analyze-Design-Verify (DMADV) roadmap in both the Design (for optimization) and Verify (for design testing) phases. In this example, which is taken from a book, the application of a DOE is illustrated for verification test of the product design robustness to customer environmental conditions and future product configurations. The described technique is useful for capturing no trouble found issues before products are shipped.

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