FRIDAY, MAY 25, 2018
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Topic Transactional


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This topic contains 8 replies, has 7 voices, and was last updated by  Mike Carnell 16 years, 4 months ago.

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    I have a question about Transactional Six Sigma(TSS). Our company is trying to introduce six sigma to transactional areas. We think that the TSS process they know doesn’t correspond to all of the transactional areas. For example, we have found that the same TSS process or methodology for HRD is not properly used Marketing or Accounting . I would like to know if there are different TSS processes for different Transactional areas.
    I hear that a company uses different TSS processes or methodologies for different functions. For example, at the company the TSS process or methodology for Marketing is different from HRD or Accounting. Is that true?


    Hi MYoung
    Go get a firm grip on what transactions take place in your organisation. Talk to your quality manager, the accounts, HR and marketing.  Only then will you understand that transactional projects are few and far between. 
    Succesful TSS projects will free up lots of peoples time!  Will your organisation appreciate more free time???  I think not….so go careful.  Transactional project teams need to identify and remove Non value Waste. 
    Think electronic.     And discuss your problems with fellow SS practicioners
    Merry xmas


    In my experience, no there aren’t different TSS processes or methodologies for different functional concerns in a company. Utilize the DMAIC model in the sense that you Define the problem you are trying to attack from the following perspectives:1. Scoped down to a manageable level.
    2. Customer-focused critical to quality characterisitic of the process.
    3. Understanding the financial implications of what you are trying to fix.
    4. Defining a goal (end state) for your project.In Measure, you want to define the key measurement fo the input(s) that drives the output that you scoped the project down to in step one above. Once you have defined this, then measure it using an existing measure or develop a measurement system of your own. Before you measure, make sure you conduct a thorough Measurement Systems Analysis to account for variation that is present due to the measurement system.The final step in your measure phase should always be the calculation of your baselline metric. If the data you are using is attribute use DPMO and/or convert it to Sigma. If you are using variable data, calculate simple process capability against the spec limit(s) for the x or x’s you are focusing on and then translate that into a sigma value.During Analyze dig deeply into the x or x’s and determine which one(s) contribute to most significant variation and which one(s) miss the spec limits the most. These are the things that you need to fix.In IMprove try any one of a number (I Have listed two) of the techniques to uncover the improvements which will most positively effect your problem area:1. Brainstorming
    2. BenchmarkingOnce you have an idea what you want to do, isolate a component of the operation and conduct a pilot (preferably using a DOE) to understand the optimal levels at which the x or x’s need to operate. Use your pilot results to validate your improvements or to make changes so that you get the maximum effect from your improvements. Prepare to roll the changes out.In Control define the critical areas that need to be monitored to ensure that you can tell when the process control and/or capability are going to fall below standards. Utilize simple Statistical Process Control tools which the workers involved with the operation can deploy and provide them with a means by which to react responsibly to what the charts indicate.I hope that this rather lengthy (yet extremely short) answer will help you realize that Six Sigma is only as magical as how you choose to employ it. If you choose to employ by following a constant, disciplined process you should achieve great success in the transactional world!Best wishes for your continued success!


    Dear Trigger,
    Thank you very much for your reply. Merry X mas.


    Dear Jim,
    Thank you so much for your explanation. It helps me a lot.
    Merry X-mas.


    Phases; Define Measure Analyze and Improve are to be used in transactional projects. I have changed the Control phase steps slightly. Please see below:9. Define Operating Tolerances (Defects allowed with respec to new procedures implemented. To do with people who do the actual work)10. Validate New Procedures (GR&R)11. Document and Sustain New Procedures. (e.g. workflow)12. Process Control & Sustainability on “y” (in process; measurement & comtrol plan)Please give it a thought and share me your comments.


    I’ve been lucky enough to work for both transactional organizations (financial and service providers) as well as more conventional manufacturing businesses.  One of the things that I am trying to impress on my peers as well as the BB reporting, is that EVERY project in transaction and only a few lead on to optimization.
    Define, Measure and Analyze utilize the same logic and approach regardless of the nature of the project.  In Analyze, the use of Process Map Analysis (which includes Moment of Truth, VA/NVA and Flow of Work) and Root Cause Analysis are critical for all projects and this approach is transaction in nature.  Only when the process has been improved and is stable, can optimization occur.. and then only if appropriate as analyzed in a Cost/Benefit Analysis.  For those projects where the vital x’s are variable and can be toleranced do you have a project that reflects the full tool box of DMAIC. 
    If you are asking do you actually use different tools from one function to another… as a general rule I would say no.  Do you use different tools from project to project.. absolutely.   A major focus for the MBB is to assist the BB to be able to tell which tools and approach is correct and have them be able to defend the choices and logic of the approach.  Therefore, to my way of thinking, you don’t have different methodologies.. just different projects and ways to view the goal, and therefore tools used to get there.


    A difference between manufacturing-type projects and transactional-type projects that we have experienced, which hasn’t been mentioned yet, is the timing of each of the phases.  It is not uncommon to have little or no historical data on transactional processes, so the Define & Measure phases take longer.  On the flip side, the Improve phase tends to be shorter because changing procedures is easier than changing equipment (in general), although you need to manage the human resistance to change well to be successful.  The heavy-duty statistics have not been used as much in transactional processes as in  manufacturing processes, but don’t use this as an excuse to omit collecting and analyzing data.


    You are making this thing way to complicated. Tools are tools and it doesnot matter if you are billing a customer or machining a shaft.
    An F test compares two variances. It does not care what type of process they came from. A t test compares two means it does not care what type of process they came from. We can go through the entire process and this will be the consistent answer all the way through, Tools are tools. Your application is not different. You may not understand the tool so it is easier to decide it does not apply than to struggle with the understanding.
    You got some good advice from Jim Johnson. Follow it. Use the tools when you need to and stop trying to figure out why you are different.
    Read Mary Walton’s book on the Deming Management Method – Look under the 7 deadly deseases and Obstacles – the one titled “we are different.”

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