ARTICLES (MAGAZINE)

These business management and quality/lean improvement articles (magazine) were written by Forrest Breyfogle and/or an associate/affiliation of Smarter Solutions, Inc.  The provided papers have been published in magazines such as American Management Association MWorld, Quality Progress, Quality Magazine, Six Sigma Forum Magazine, Supply & Demand Chain Executive, Quality Management Forum, ASQ Statistics Division Newsletter, and ASQ Lean Division Newsletter. Topics include: Integrated Enterprise Excellence (IEE), 30,000-foot-level predictive metrics, lean Six Sigma, Business Process Management (BPM), Business Management System, Statistical Process Control (SPC) charting issues and resolution, enhanced business scorecards, and creating process improvement efforts so that the big picture benefits.

Control Chart for Non-Normal Data Example: Log-normal Distribution with Negative Values

This paper addresses 3-parameter log-normal distribution control charting. Statistical Process Control (SPC) has a primary purpose, which is to identify when special cause conditions occur for timely corrective actions. SPC textbooks and training state that an individuals control chart (X) or an individuals and moving range chart (XmR) control chart is appropriate and should be used when tracking individuals data. With an individuals chart, between subgroup variability affects the magnitude of the control limits from the overall response mean. This paper illustrates how the individuals control chart is not robust to non-normality. When data are not normally distributed (e.g., when there is a boundary condition) the data need a normalizing transformation that is appropriate for the process being evaluated. The log-normal distribution often is a good fit for these situations. However, the log-normal distribution cannot accept negative numbers, which are often needed to describe this type of process response. This paper describes the use of the 3-parameter log-normal distribution in 30,000-foot-level control charting. In this 30,000-foot-level metric reporting methodology, process response is evaluated for regions of stability. Within identified stable regions, a process capability non-conformance estimate can then be reported if a specification exists. If there is a recent region of stability, one can consider the data in this region to be a random sample of the future; hence, a prediction statement can be made. An enterprise can assess its value-chain metrics collectively – where each has 30,000-foot-level reporting – to determine where improvements can be made that positively impact the enterprise financials as a whole. Goals to these metrics would pull for a process improvement or design project creation that positively impacts these 30,000-foot-level metrics.

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Enhanced Control Chart for Count Data with Prediction Process Capability Statement

This paper addresses infrequent failure data control charting. A primary purpose of Statistical Process Control (SPC) is to identify when special cause conditions occur for timely corrective actions. SPC textbooks and training state that a c-chart or u-chart should be used for count data tracking. With a c-chart, the tracked response is the number of counts, which has time-series identified rational sub-groups. A u-chart has a similar tracking but only occurrence rate is track. Described in this paper are technical issues that make the c-chart and u-chart ineffective, especially when the counts (e.g., safety incidents) are very low for the subgrouping (e.g., months). The technical reason for this occurrence is discussed along with an alternative 30,000-foot-level reporting system that addresses these issues. Traditional c-chart and u-chart control charts can lead to inappropriate activities, since the underlying assumptions for these charts are often not valid in the real world. In the 30,000-foot-level metric reporting methodology, which centers on use of the individuals control chart, process response is evaluated for regions of stability, where time between incidents is a response that can be tracked for adding power to the test when there are infrequent count occurrences. Within identified stable regions, a process capability estimate can then be reported. If there is a recent region of stability, one can consider the data in this region to be a random sample of the future; hence, a prediction statement can be made. An enterprise can assess its value-chain metrics collectively – where each has 30,000-foot-level reporting – to determine where improvements can be made that positively impact the enterprise financials as a whole. Goals to these metrics would pull for a process improvement or design project creation that positively impacts these 30,000-foot-level metrics.

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Enhanced Approach for Lean Six Sigma in Healthcare Insurance Industry

While a great deal of process improvement work has finally begun to take hold within healthcare around patient safety and hospital operational efficiencies, what about the other non-clinical aspects of the overall healthcare system which can consume physician resources and adversely impact hospital finances? Healthcare insurance processes can have a major impact on both patient care as well as operational efficiencies. This paper describes how one healthcare insurance company has begun to use Six Sigma to not only make itself more efficient and effective internally, but is now also directing its energies toward lowering medical costs while improving patient service and outcomes

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Enhanced Control Charts for Defective Proportions with Predictive Process Capability Statement

This paper addresses technical problems with p-chart and provides an alternative. Statistical Process Control (SPC) has a primary purpose of identifying when special cause conditions occur for timely corrective actions. SPC textbooks and training state that a p-chart should be used for non-conformance rate tracking, when the data are attribute. With a p-chart, there is non-conformance rate reporting that has time-series identified rational sub-groups. Described in this paper are technical issues with the p-chart that can lead to a falsely identifying common cause process variation as though it were special cause. The technical reason for this occurrence is discussed along with an alternative 30,000-foot-level reporting system that addresses these issues. Traditional p-chart control charts can lead to much firefighting, since the underlying assumptions for these charts are often not valid in the real world. In the 30,000-foot-level metric reporting methodology, which centers on use of the individuals control chart, process response is evaluated for regions of stability. Within identified stable regions, a process capability non-conformance estimate can then be reported. If there is a recent region of stability, one can consider the data in this region to be a random sample of the future; hence, a prediction statement can be made. An enterprise can assess its value-chain metrics collectively – where each has 30,000-foot-level reporting – to determine where improvements can be made that positively impact the enterprise financials as a whole. Goals to these metrics would pull for a process improvement or design project creation that positively impacts these 30,000-foot-level metrics.

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Enhanced Reporting Techniques for Scorecards are Illustrated in these Predictive Analytics Examples

These enhanced predictive analytics examples illustrate the power of providing futuristic statements in business management system scorecards and how to create this form of enhanced performance measurement reporting. 

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Enhanced Control Charts for Variable Data with Predictive Process Capability Statement

This paper addresses x-bar and R control charting issues. For a given process, do you believe that everyone would make the same statement relative to: 1. process control/predictability from a created control chart? 2. process capability to meet its specifications? Not necessarily! Process statements such as these are not only a function of process characteristics but can also be very dependent upon sampling approach. The limits for the x-bar chart are derived from within-subgroup variability, while sampling standard deviation for XmR charts are calculated from between-subgroup variability. Statistical Process Control (SPC) has a primary purpose, which is to identify when special cause conditions occur for timely corrective actions. SPC textbooks and training state that an x-bar and R control chart is appropriate for situations where there are multiple continuous responses in a subgroup. Described in this paper are technical issues with the x-bar and R chart which can lead to falsely identifying common cause process variation as though it were special cause. The reason for these issues is discussed along with an alternative 30,000-foot-level reporting system that addresses these issues. Traditional x-bar and R control charts can lead to much firefighting, since the underlying assumptions for these charts are often not valid in the real world. In the 30,000-foot-level metric reporting methodology, which centers on use of the individuals control chart, process response is evaluated for regions of stability. Within identified stable regions, a process capability non-conformance estimate can then be reported. If there is a recent region of stability, one can consider the data in this region to be a random sample of the future; hence, a prediction statement can be made. Within identified stable regions, a process capability non-conformance estimate can then be reported if a specification exists. If there is a recent region of stability, one can consider the data in this region to be a random sample of the future; hence, a prediction statement can be made. An enterprise can assess its value-chain metrics collectively – where each has 30,000-foot-level reporting – to determine where improvements can be made that positively impact the enterprise financials as a whole. Goals to these metrics would pull for a process improvement or design project creation that positively impacts these 30,000-foot-level metrics.

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