iSixSigma

Sigma Level …

Six Sigma – iSixSigma Forums Old Forums Finance Sigma Level …

Viewing 10 posts - 1 through 10 (of 10 total)
  • Author
    Posts
  • #24809

    Anonymous
    Guest

    How has the sigma level helped the banking system avoid bad debt?How has the sigma level made banks more accountable to their shareholders?How has the sigma level helped savers and pensioners?What is missing in Six Sigma that might have prevented the credit crunch?

    0
    #59497

    Mikel
    Member

    Recognition that integrity and a good quality system are the proper
    foundations and a Six Sigma initiative can’t overcome the lack of
    either?

    0
    #59498

    Anonymous
    Guest

    Yes, I agree with what you state about integrity and a good quality system. What I’m questioning is whether the idea of using a Sigma level to compare departments, facilities, and banks is useful?If you agree that it hasn’t helped customers and share holders compare banks, etc. What can they use? Surely, integrity and good quality systems would lead to something that can be measured and benchmarked.My own opinion is there is now a great opportunity for experts in this forum to debate this issue and suggest a way forward.My suggestion would be to use a potential Loss function as a metric for comparing banks.

    0
    #59499

    RC
    Participant

    Isn’t Sigma Level inherent to the observed process? Isn’t it also true that a better comparison of processes is their respective DPMO, PPM?What issue needs to be debated? The performance of banks in what regard?a potential loss function measuring what? Brain cells from trying to decipher this post?

    0
    #59500

    Anonymous
    Guest

    I’m referring to the concept of a Process Sigma, or a Sigma Level, to compare complexity, departments, and facilities, and I gave a specific example .. banks.

    0
    #59501

    Nolan
    Participant

    Bad debt – could analyze causal factors for default and factor those into underwriting; don’t know that naybody did – they didn’t when I was in lending – had 4 or 5 underwriting factors derived from years of history…may or may not have been valid.
    Accountable to Shareholders – can’t think of how this may have been impacted. SS provides data and potential process improvements; how mngt interfaces with shareholders is an entirely diferent story.
    Savers & pensioners – too vague; have no idea
    Prevent credit crunch – no way! Actions were driven by market forces, greed…data would have no impact on that.

    0
    #59509

    Anonymous
    Guest

    Les,Everyone’s calling our financial problems a global problem, but as I understand it the problem started in USA and the UK. Germany hasn’t seen the same levels of consumer debt, and banks in France and Sweden haven’t been affected. Please correct me if I’ve been misinformed.If as you claim consumers can’t judge any of the banks based on data, that is a very damning comment on Quality as a discipline and Six Sigma in particular :-)Cheers,
    Andy

    0
    #59510

    Nolan
    Participant

    Hi Andy, I’m not qualified to comment on the global-ness of the economic situation. Have to leave that to others.
    As to your second point – I don’t believe it’s damning on Quality or SS; much more on mngt. Consumers/investors don’t have access to truth and mngt, even the ethical ones are so driven by short term market forces they can’t manage properly. Example – a real estate lender had better play the “no qualification” and other “over-lending” games or they would not make loans. They play to the competition or go out of business. So, if the market is crazy – you either play crazy or get out.
    That’s why bailouts are horrible – you fail, you fail – end of story. Someone who can succeed will take your place – guaranteed!!!

    0
    #59511

    Anonymous
    Guest

    Hi Les,I certainly recognize the picture you’ve painted, but I’ve mostly seen it ‘from the other side.’Specifically, I’ve come across many cases where management suspected a development chemist of not fully disclosing a recipe, or an operator running a refining operation without fully disclosing the optimum process parameters, which is why they spent so much time trying to ‘characterize’ processes.I’m sure you will agree this is a good example of where Quality and SS have made a useful contribution. Surely, if it can work on one side of the equation; why not the other?Cheers,
    Andy

    0
    #59512

    Nolan
    Participant

    We can only hope and keep trying…..

    0
Viewing 10 posts - 1 through 10 (of 10 total)

The forum ‘Finance’ is closed to new topics and replies.