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Baseline vs. Entitlement

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  • #29728

    Baker
    Participant

    I was recently assigned the task of coming up with a “baseline” value to estimate the amount of “acceptable” rework on a process (for example, 12% of widgets need rework). In Sigma terms, shouldn’t this value be zero? Or should it be the best observed value (what I understand to be “Entitlement”) ? Or should it be another value?
    Thanks.  

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    #76689

    Mike Carnell
    Participant

    Jason,
    In the context of our (Six Sigma Applications) training the baseline and entitlement are two different things. A baseline would be dased on historical performance. Ideally we prefer to get a couple years data to see if we have something such as seasonal cycles. Typically we use what we have but set the baseline value based on 3-6 months worth of data.
    Entitilement is by definition (in my case a old definition from Motorola) “the best you can do with what you have.” You can roll up the capabilities for your line or you can take your historical data and find the best performance you ever had and set it out there for a target. I really depends on the group you are working with. If they don’t have much experience with stats and don’t seem to trust it much use the historical. It is really tough to argue with the idea that you did it once.
    Good luck.

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