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Project ROI: A Key Metric for Project Selection and Resource Allocation

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Financial project metrics can be cumbersome to use and jargon-heavy. We demystify and simplify project return on investment, making the concept accessible to all and giving you the confidence to use it in your project management operations.

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Procedures: The Key to Consistency in Business

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There are all kinds of procedures for the many things that people do every single day. Every family household has procedures for basic tasks like putting dishes away, assembling for dinner or getting into the car. Likewise, every place of business has procedures for the essential activities they do on a regular basis. Overview: What […]

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A Guide to Process Cycle Efficiency: Optimizing Your Process

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Have you ever heard your customer ask, “Why does my job take 10 days when there is only 5 days of actual work?” It may be because the Process Cycle Efficiency (PCE) is low, and there is a lot of waste in the process. PCE will help define how much that waste is.

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Understanding Output: The Key to Achieving Desired Results

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When you work on a process, there is always a result. These results can be broken down into outputs and outcomes. Whatever you put into your work results in the degree of your output. Your output is dependent on the strength of your input, so it is vitally important to choose the right inputs that […]

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Assessing Process Performance: The Value of Establishing Baselines

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How do you know if your diet is working? You need to start with a baseline and then measure change from that. You should do the same for all your processes. From that process baseline, you can know whether your process is getting better, worse, or not changing. The term “process baseline” typically refers to […]

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Step-by-Step Guide to Project Selection

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The purpose of Lean Six Sigma is to identify opportunities for improving organizational processes. One of the challenges is the selection of projects for improvement teams to work on. Let’s learn more about how to select impactful projects. Both Lean and Six Sigma projects are used to improve organizational processes. Improvement teams are formed. DMAIC […]

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Understanding Poka-Yoke: Eliminating Defects with Proactive Measures

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Have you ever accidentally microwaved your face? No? You’ve never opened the microwave door while it was cooking and accidently exposed your face to microwave energy? I know that you haven’t, because whenever you open the door, the microwave stops running. There is a switch that triggers when the door is opened that tells the […]

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OSHA: Ensuring Safe and Healthy Work Environments

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Many organizations claim that safety is Job #1. The Occupational Safety and Health Administration is an agency in the U.S. Department of Labor which is responsible for ensuring that companies provide safe and healthy work environments for their employees. OSHA stands for Occupational Safety and Health Administration. It is a federal agency of the United […]

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The Importance of Non-Parametric Tests in Statistical Analysis

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Many statistical tests have underlying assumptions about the population data. But, what happens if you violate those assumptions? This is when you might need to use a non-parametric test to answer your statistical question. Non-parametric refers to a type of statistical analysis that does not make any assumptions about the underlying probability distribution or population […]

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Maximizing Efficiency with Operation Cost Targets

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In business, it is vital to have a firm grasp on the maximum amount of expenditures a project can allow. This can mean the difference between being profitable or falling into the red. For every project you undertake that requires funds, you need to know how much you can comfortably spend on it. Beyond that, […]

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Optimization: Key to Reducing Waste and Improving Quality

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Nothing is perfect, but almost everything can be made better. That’s the basic philosophy behind any optimization strategy. Optimizing is an activity that businesses pursue when they are generally satisfied with the entry criteria and scope of a particular process, but want to further improve the efficiency or reduce output variability. Overview: What is optimization? […]

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The Crucial Role of Primary Metrics in Validating Six Sigma Improvements

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The primary metric is a numeric output used to understand your process. It makes the process objective, setting the stage for successful improvements that align with the organization’s strategic goals.

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Prevention Cost

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Lean Six Sigma prevention cost analysis (PCA) is an important tool that can help businesses prevent costly mistakes and improve their bottom line.

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Exploring the Null Hypothesis: Definition and Purpose

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The null hypothesis, written as Ho is a subset of the larger topic of Hypothesis Testing. The null hypothesis is a statement about a specific condition of your data and allows you to draw important conclusions about that data.

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Process Failure Modes Effects Analysis (PFMEA)

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Complex processes increase the likelihood of error states occurring. Scrap, defects, unnecessary work in progress, and warranty are all expensive. We’ll show you the benefits of adopting the process failure mode and effects analysis approach for your business.

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Using Paynter Charts to Explore Process Performance

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Get a quick primer on Paynter charts, a graphical method for comparing data regarding sub-groups. We look at how Paynter charts compare to KPI data and Pareto charts as well as the benefits of creating and reviewing Paynter charts.

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Using Paired T-Tests for Controlled Analysis

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A paired t-test is a form of a two-sample t-test used in hypothesis testing. It is useful for answering questions about any significant differences for before and after comparisons. 

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Objective Evidence

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Objective evidence is factual, unbiased data that can be observed and measured. Let’s explore its importance in your Six Sigma practices.

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Production Part Approval Process (PPAP)

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The supply of components into high-value manufacturing industries is fiercely competitive, and there is no place for poor quality. Unexpected defects mean lost business and reputational damage. By following the Production Part Approval Process, you can lock in quality and hit those customer requirements every time.

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Common Non-Parametric Tests and Their Applications

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Several statistical tests have underlying assumptions of a specific type of distribution which is required for the test results to be valid. But what if your data distribution does not meet that assumption? A non-parametric test might help. There are several hypothesis tests which assume your data has a specific distribution. For example, a 2-sample […]

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Navigating Data Analysis: The Importance of Testing for Normality

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Is your data normal? Oh no! Is that a problem? The concept of data normality can be important when using certain statistical tools to make data-driven decisions.

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Mastering Positive Correlation Analysis: Tools and Techniques

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Correlation is a statistical term of the relationship between two variables. You can have a negative correlation, positive correlation, or no correlation. Let’s see what a positive correlation is all about.

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Operational Definition

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Would you and I agree what 50% cotton/50% polyester means if we saw a label on your shirt? Probably not. How about whether your order was delivered? Without good operational definitions, we would likely not agree on many things. Let’s see how we can overcome that gap.

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Ordinal Data

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If you have categorical or descriptive data that has a natural order, sequence, or preference, it would be defined as ordinal data. Since ordinal data is one of four common types of data, you should understand what it is and how you can use it.

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Maximize Your Project Management Potential with PMP Certification

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Widely recognized as one of the most prestigious certifications in the industry, PMP validates your knowledge and experience in project management, opening up new opportunities for career advancement and higher salaries. Overview: What is Project Management Professional (PMP) Project Management Professional (PMP) is a globally recognized professional certification that is granted by the Project Management […]

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Find Out How and Why to Avoid The O’Brien Effect

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If you have worked in customer service long enough, you have likely had that one co-worker that talks way too much to customers, making suggestions that end up creating more work for co-workers regardless of the initial needs of the client. Overview: What is the O’Brien Effect? The O’Brien Effect refers to the waste that […]

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NORMSINV

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NORMSINV is an Excel function that provides the INVERSE of the cumulative standard normal distribution. Let’s learn how it works.

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Promoting Quality and Customer Service through Process Ownership

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When individuals take ownership, they are more likely to be invested in its success and to work tirelessly to ensure that it runs efficiently, meets its goals, and continuously improves over time. So how can this concept be used in process improvement? Lean Six Sigma is a business improvement methodology used to improve processes and […]

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Operational Cost

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Running a business involves all kinds of expenses. Rent, materials, labor and just keeping the power on all take money, and these costs add up to your total operational expenditures.

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Ordinal vs. Nominal Data: Which One Should You Choose?

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When you have categorical data with a natural order or preference, you can call that ordinal data. When you describe data, you must first distinguish whether you are talking about numerical or categorical data. This is important for the proper selection and use of statistical and analytical tools. Categorical data is a type of data that […]

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Pooled Standard Deviation

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How do you calculate the overall standard deviation of multiple groups or samples? You can’t just add them up and divide by the number of groups, like you do with averages. Let’s see how we can do it correctly.

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Making the Most of Outliers: Leveraging Insights for Improvement

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An outlier in the context of statistics means a value in your data set is significantly different from the other values. This might be a good or bad thing depending on the situation.

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Natural Tolerances

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The economical method of setting the control limits of a process to a specific level is known as natural tolerance. Natural tolerances work well for typical desired levels of control and are useful for reviewing the practicality of the specification limits.

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One Piece Flow

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Companies love their batch flow processes. But, a one-piece flow might be a more efficient approach to producing your products. Let’s learn a bit more about one-piece flow.

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Unlocking Success: Management by Knowledge in Process Improvement

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Management by knowledge is imperative to the success of your process improvement initiatives. Discover how to harness this tactic in your Six Sigma processes to enhance performance, promote collaboration, and maximize staff potential. What is Management by Knowledge in Six Sigma? Six Sigma serves as a powerful tool to drive efficiency and customer satisfaction. With […]

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Driving Success: The Crucial Role of Management in Lean Six Sigma

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Management plays a critical role in the successful implementation of Lean Six Sigma (LSS) methodologies within organizations. It provides the foundation for driving process improvement, achieving operational excellence, and delivering superior customer value. In today’s competitive business landscape, organizations strive for efficiency, quality, and continuous improvement to stay ahead. In pursuit of these goals, Lean […]

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Key Metrics for Evaluating Lead Time Performance

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The time it takes to deliver on your deals makes or breaks your business. You need to do everything you can to speed up this process without sacrificing quality or safety.

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Understanding Muri and How to Eliminate It

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Waste is one of the biggest setbacks that prevents companies from reaching their maximum potential. One of the categories of waste, as described by Talichi Ohno, is known as muri. Talichi Ohno developed a system for Toyota that focused on the continuous improvement of quality and the elimination of waste. The types of waste as […]

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The Role of Mura in Process Waste: Strategies for Minimizing Variation

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The Toyota Production System, was developed around the elimination of the three types of deviations that represent the inefficient allocation of resources. The three types of deviations are muda, mura, and muri. Muda deals with waste and is often defined by the 7 wastes of lean. Mura is concerned with inconsistency and variation and may […]

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Lean Manufacturing: Improving Quality and Reducing Costs

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Lean manufacturing seeks to get rid of the extra fat and waste in your process while seeking to build muscle in your production processes. Let’s see how.

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Master Production Schedule (MPS)

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A master schedule is the plan that all your other production plans are based on, which is why it’s so important to get this one right.

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Mean Time Between Failures: A Guide for Proactive System Maintenance

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Understanding mean time between failures (MTBF) is a way of expecting the unexpected. Every kind of physical tool, machine or device will eventually fail. Friction of physical parts rubbing against each other, degradation of certain materials or misalignment between different components can all contribute to system failures. That’s why every active car needs tune-ups and […]

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Little’s Law: A Powerful Metric for Process Analysis

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Your customers want to know when they can expect completion of their orders. Little’s Law, or Process Lead Time (PLT), is a simple way to calculate how long an order will take to complete.

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Material Requirements Planning is Key to Operational Efficiency

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Almost every product requires physical materials, even services or solutions that don’t include a final physical deliverable. Any type of resource, component or supply needed to produce a particular product is considered a material. Material requirements planning (MRP) is a method for gaining greater control over internal logistics and turning it to the company’s advantage. […]

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Multi-Vari Chart

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As the Chinese proverb says, “a picture is worth a thousand words.” The multi-vari chart is such a picture. In a single graph, you will be able to understand the variation of your process. Let’s learn more. 

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The Impact of Mean Time to Repair on Your Company’s Bottom Line

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MTTR can refer to Mean Time to Repair as well as Mean Time to Resolution, Mean Time to Resolve, and Mean Time to Recovery. These all mean the same general thing, but on this definition page, whenever we reference MTTR, it is in regard to Mean Time to Repair. Overview: What is Mean Time to […]

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Making Informed Decisions: The Power of Measurement System Analysis (MSA)

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Making data-driven decisions is critical in today’s business environment, but can you trust your measurement system to give you meaningful data? Measurement System Analysis is the tool you need to know whether you can trust your data.

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Why You Need a Metricationist: A Guide to Maximizing Your Company’s Performance

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Having a metricationist on your team opens up your organization to a wide range of possibilities. The use of metrics can mean the difference between an average company and a great one. A metricationist can help take your company to an optimal level of quality. Overview: What is a metricationist? A metricationist is a person […]

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What is Last in, First out (LIFO)? A Complete Guide

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Having a reliable method to account for your inventory is vital for reporting your financials to stakeholders as well as having the appropriate information for your business taxes. There are three popular methods for this, and they are the FIFO, LIFO, and average cost methods. If you are running a business, you are looking for […]

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Understanding Lots for Efficient Inventory Management

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When a product is purchased by an end-user, it is generally sold individually. However, when the product is initially delivered to a distributor by a supplier or sold wholesale, it is usually grouped into a large quantity and sold as a lot. When your business expands, it is almost guaranteed that you will be dealing […]

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