Intro Quality Management Review

What could possibly result if your measurement system is not in balance?

A balanced measuring system makes sure to integrate a company's budget process and it's strategic planning so that the company's budget can handle their strategic planning. In the case that these measurement systems are not in balance, the company could set goals for itself that could be unattainable. More specifically the company could plan in its strategic planning that it would like to double its profits, however to make this possible they would need some sort of drive, and what could end up happening if they did not balance their budgeting as well is the company would simply not have the money to support its new plans and fail.

Why is having a balanced perspective to you measurement system important?

A balanced perspective in your measurement system is important because budgets alone do not take enough into consideration, meaning that they should bear little relation to a company's long-term goals. When a measurement system consists of a balanced perspective, the company will have a broader perspective on it's health and activities. This system is also a very powerful framework for organization within the company. A balanced perspective allows for coordinating and correcting a company's operations and businesses so that all activities are in line with its strategy. By delivering a mechanism for strategic feedback and review, an organization can support a sort of learning that is often missing in companies. This learning grants the ability to reflect on inferences and adjust theories about cause and effect relationships regarding the company.

What makes the skill set of a Black Belt so valuable to today's organizations?

A black belt has many valuable skills because not only have they have been trained in the six sigma methodologies but also carry strong leadership skills. Black Belts are valuable because it is hard to come across individuals skilled in both leadership/soft skills and analytical skills. Having these two skill sets combined helps make black belts large assets to companies because of the range of abilities the black belts can carry. These skills allow the black belt to oversee their team and lead them in the right direction using great communication skills and building the team character while also checking all work to make sure that data and information presented is accurate and for the interest of the organization.

Explain the concept of a bottleneck, giving an example from school or work.

A bottleneck is when the capacity is less than the demand that is present for the product or service. An example of this is when registering for popular but necessary classes, there are often too many students and not enough space in the course. A specific example of this is the Spanish department. It has become rare and almost impossible for students to complete the Spanish minor at the University of Minnesota, as they offer very few courses, but a lot of students want to take the classes. This is also an issue as Spanish is a growing language in our country, so the presence of this bottleneck will have a negative impact on students looking to gain more knowledge and communicate more clearly with a larger group of people.

Describe the difference between control charts and histograms in terms of analysis. Why do we say that control charts can be thought of as motion pictures, while histograms can be thought of as snapshots?

A histogram is a graph that shows frequency and spread, while a control chart shows when a process changes over time, and shows trends, patterns and cycles. The histogram is typically a variant of a bar graph, while a control chart is a variant of a line graph. These two are to be used together despite their differences. The histogram is considered a snapshot because it doesn't show when things occur. By looking at a histogram, it is unclear when any of the points on the chart occur. On the other hand, a control chart is considered a motion picture because the image depicts performance over time.

How is a net promoter score different than a satisfaction score?

A net promoter score is a simple measurement that organizations use to determine how likely a certain individual would be to recommend products and services provided to a friend or colleague. The net promoter score measures the difference between the promoters, who give high remarks, and the detractors, who give low remarks. The satisfaction survey and score is more vague. The question "Would you recommend us to a friend?" is associated with the net promoter score, while individual satisfaction is measured on a satisfaction survey. The information from the net promoter score is more indicative of success, and it is shorter and simpler for consumers.

What is recommended as superior ways to brainstorm?

A superior way to brainstorm is to brainswarm. Brainswarming allows for silence as people come up with their initial thoughts and ideas, and then using post-it notes, their ideas are all posted on a common board. This makes sure that the few dominant people in the brainstorming session don't completely take over, so that everyone's ideas are heard and considered. It makes sure that all ideas are concise, so when they are discussed they can be elaborated on and others can think of ideas that might branch off of the one suggestion. Then ideas can be placed on a graph, which grouping of similar ideas is completed.

Explain why a truncated histogram indicates that the data has been fudged and why a bimodal histogram indicates that two populations are represented in the data. Describe how two populations might be present in data from a call center.

A truncated histogram indicates that the data has been fudged because the tails have been cut off and they have been built up in the other classes and they've been truncated. It is all bunched up because someone is not recording things properly or changing the numbers. Because what you would expect is it to tail off nicely, but it is just bunched up. A bimodal histogram indicates that two populations are represented in the data because there are two classes presented. Two populations might be present in data from a call center by having two different processes. That there is a separate population, that happens to be the rework population that is being analyzed.

Provide examples 3 areas / processes in companies where you might expect to see any of the following histogram shapes: truncated, bimodal, skewed when data is displayed. Why would you expect those shapes?

An area where you might find a bimodal histogram is in a hospital where the average height of men and women is recorded. There would be two modes, so there would likely be a peak in the men's data and in the women's data. This shape would be expected because two different sets of data are being analyzed but on the same histogram. An example where there might be a truncated histogram is with a clothing manufacturer, looking to make one specific size of clothing. Those that lie within the center of the histogram, and not the ends, would be closest to the actual ideal size of the clothing article. This shape would be expected because the truncated ends are almost a few standard deviations away, and represent deviations from the expected product. An area where you might find a skewed histogram is the housing industry, where the price of homes and average salary in a given area might be analyzed and skewed on a histogram. This would be expected because the amount one would pay on a house likely increases as salary increases, leading to a positively skewed histogram.

When and why might you choose to weight the selection criteria for solutions? Provide an example.

An example of when you might choose to weight the selection criteria for solutions is when the chosen factors vary in importance, based upon current conditions. The importance of each factor is usually denoted by weighing the factors. Weighing is a process of assigning multiple values to a factor to increase its overall importance relative to other factors. This provides a less biased view of each individual solution. An example would be: if time is determined to be twice as important as cost, then ime will receive a weighing equivalent to two times that of cost. Another example would be an economy is heading into a recession, and the focus of a company is to take out as much cost as possible. This then makes the company overweight by a factor of 2 or 3 cost benefit, which allows for the company to truly hone in on things that drive a quick cost benefit.

Discuss how a FMEA can be used to mitigate risk.

FEMA is used to mitigate risk by addressing the root causes of the problem, meeting the desired outcome and being implemented effectively. The FMEA is a "quality tool that allows the user to examine the process from the viewpoint of its potential for failure (what could go wrong in the process) and plan for its control through service, product or process design requirements." As the FMEA is an ongoing task, the plan can be broken down into the primary needs and clarified needs of the customer, and then the responses of what, how and a process feature goal are defined. This layout provides a clear plan of action in addition to its already implemented preventative nature.

How would you use a FMEA when developing a new service process?

As service processes carry a greater weight, implementing FEMA when developing a new service process can promote huge external growth. The first step would be to identify a service related process that have a large impact on the success of the company. Second, using FEMA, "the next step is to determine how this failure might fail (potential failure mode), such as inaccurate data entered into the system." This failure is next analyzed by asking the question, "what is the potential effect of the failure?" From here, a team must brainstorm to "determine the potential cause of the failure." Next, the RPN is calculated to determine the severity. A team can then use this information in order to prevent future failures and identify potential causes of problems.

What is COQ?

COQ refers to "Cost of Quality." According to the article, "at an operational level, quality management techniques effectively identify waste and accelerate problem solving for tactical issues related to process involvement" (Cokins, 2006). Cost of Quality is defined as "costs that would disappear if all processes were error free and all products and services were defect free" (2006). Essentially, it is all costs that are associated with "avoiding, finding, making and repairing defects and errors - assuming all defects and errors are detected" (2006). Cost of Quality summarizes the difference between all actual costs, and what the reduced cost would amount to if there were no "substandard service levels, failures or defects" (2006).

Why does change management become a big issue again during the Improve phase? Describe how you would use some of the change management tools discussed in module 4 in the Improve phase.

Change management becomes an issue again because any moves made to improve will come with resistance, no matter where the resistance comes from. In order to move forward effectively in the face of resistance, change management must be up front. The implementation of new strategies and techniques to improve a process will need to be supported by change management, and more specifically within change management, sustaining the change once it is fully integrated. One aspect from module 4 is the idea that within change management, the leaders must be empowered and encouraged by the possible outcomes of the change, so resistance is further broken down among a team. This is really important in the improve stage.

Provide 3 examples in different industries in the real world where checklists help prevent errors.

Checklists are incredibly important in many industries, but especially in the medical field. Checklists can be helpful for medical personnel as they go through important processes in surgery. Surgeries require an order of operations, and a deviation from the list can lead to disaster or detrimental mistakes. Checklists are also important in aviation. The protocol for pilots and all staff on the plane is specific and the lives of many are at risk. Checklists in aviation prevent error because the pilots need to know how to start a plane, when to start the plane, and when they can take off. Another industry where checklists help to prevent errors is in the legal industry. Lawyers need to follow checklists otherwise they can get in serious legal trouble, if specific necessary steps are skipped or neglected.

How can checklists be used in our daily personal lives to help us prevent errors? Provide 2 examples.

Checklists can be used by students in their daily lives to prevent errors. There are many forms of checklists, including planners and Google calendar. The use of a planner or calendar can help to plan for future exams and assignments, and avoid errors such as missed homework and events. Another example of how checklists can be used in our daily personal lives to prevent error is in cooking. Often when cooking, recipes are needed. The lack of a certain ingredient can cause a total failure in the result of the recipe. It is important to follow recipes closely, so food turns out the way it is expected.

Why is it important for a communication plan to have different messages for different audiences? Why is it important to not rely solely on one mode (medium) of communication?

Communication is key in change management, so important in fact that about "70% of change initiatives fail" due to poorly communicated information. A large reason for why this happens is because communication may not be delivered the right way for its audience. We need to have different messages for different audiences because all audiences will take in the information differently. Also communication efforts should be tailored to certain audiences because the level and content of information should differ depending on the audience that is being addressed. It also important to offer these levels of communication in different mediums or modes of communication because these audiences also consume information differently, and what works for one audience might not be best for another audience. For instance, you probably cannot communicate information over email the same you would communicate information in a live presentation. So you must communicate these information in different mediums while also tailoring to your audience.

Map out the course registration process at the U of M, identifying where the touch points are. Also identify at least four disconnects in that process.

Disconnects: 1. In order for students to see their schedule laid out, they have to build it in schedule builder rather than just being able to just see it on the actual "registration" page. 2. Permission numbers may slow down the process for eligible students to get into a class. 3. It doesn't tell you in schedule builder if the class is full or isn't available for that semester. 4. Course descriptions are not available on the "registration" page.

Can efficiency and creativity co-exist in an organization or is it one or the other? Discuss

Efficiency and creativity can co-exist within a company but it's a strong give and take. One has to help build the other. You can't just have one in order to have success. There is a strong process of innovation that has to take place in order to understand what the problem is, find solutions and create new ideas. But that won't solve the problem. Having a strong efficiency program such as Six Sigma needs to also exist in order for the problem to be solve and success to grow. There needs to be discipline in order to get any where. There is a delicate balance between the two that each company needs to feel out. There is a need for creativity in order to push boundaries and explore new options. The creator of Post-it note from 3M toyed around with the idea for years and years before making it a thing. That would never have happened though if he wasn't allowed that creativity. But in order to make it a reality programs like Six sigma must also exist to keep up with an efficient work force. "Efficiency programs such as Six Sigma are designed to identify problems in work processes--and then use rigorous measurement to reduce variation and eliminate defects" (Hindo, 2007).

What is meant by end-to-end process management?

End-to-end process management refers to experiencing the business the way the customers experience the business. For example, end to end process values what is important to the customers, or how they costumers see the product. Essentially it is the idea of not focusing what is important in the company internally, but what is important to the customer. An example of this is a online retail sale, and in regards to the end-to-end process, it would include the very beginning of the process, when a customer is looking online at products. The other end of the process would be the customer's satisfaction after receiving the product. If this process is managed well, the customer will have a positive experience from end to end, hence the term.

How would you use a FMEA to drive improvement?

FMEA can be used to identify issues in a process. It would be best to identify what processes have the biggest impact on your external customers. Once you have done that you can use FMEA on those processes to identify what the issues are. Getting to identify the issues in these process can help you identify any possible failures. This gives you an opportunity to address these possible failures and issues before they become a problem for your external customers. You can then initiate these process with as minimal failures as possible since you have already brainstormed possibilities of catching these failures. The use of FMEA as a correctional tool allows you to weed out possible failures while also giving reasons for you to improve your current methods and processes.

Describe the role of finance in process improvement. Explain the three points in the DMAIC cycle when finance needs to be involved.

Finance provides an honest third party that can back up your findings with a standard way of measurement. It provides hard evidence that can be audited and also held accountable. Financed is first involved between the define and measure phase of the DMAIC. At this point finaniance is involved so that they can gauge what the cost of poor quality is (COPQ). Secondly, it is involved in between the analyze and improve stages to do a verification on the pre implementation of COPQ. This is where they do a cost benefit analysis to really sign off and do an operational budget adjustment. Lastly it is involved at the end after the control phase. This is where you look back and see if you got what you intended. At this point you see what the budget really is and get to realize any savings you have made.

Explain how a process control plan might be helpful in training new employees.

For a six sigma project, it is important when in the control phase to closeout, handoff and celebrate your current project going on to the next phase. When it comes to training new employees, it is important to have a good control plan in phase to make the transition go more smoothly. You want this so that when you hand things off, the new employee knows about what is expected, what the process it was you went through to get the project to that point and what to do in the long run to keep it going. Some things you can do to help that are; process descriptions, checking in, process flow charts, outcome indications and date & revisions. These will help make the process control plan the most efficient and help the new employee in their training.

Discuss the concept of functional fixedness. Provide examples of how to overcome it.

Functional fixedness is a psychological bias, in which an individual is unable to view a concept or idea in a nontraditional way. Functional fixedness can be seen as a block to innovation. One way to overcome functional fixedness is to break down the parts of the object, to clarify how the object is seen. This involves changing the way the object is described, to move away from design fixation. Another way to overcome functional fixedness is to move from goal fixedness. This is not to say that there should not be goals, but it can be difficult to modify the functionality of a product, when the goal and the terms used to describe it are fixed and strict.

Do you think an OSM should also be responsible for coming up with an organization's strategy? why or why not.

I do think OSM should be at least mostly responsible for coming up with an organization's study because I think they will soon have the most information on the matter. We know that a reason that many large companies can't reach their full potential is because there is a disconnect between the individual employees/departments objectives versus the companies. Since OSM is designed to create a link between these two parties, they will soon discover what the disconnects are help connect the gap. After doing this, OSM will know where the company is lacking and will know where the individuals are lacking, and should be well suited to come up with a plan that will create overall success not only for the individual groups but for the company as a whole.

Write a "SMART" goal statement that addresses each of the following scenarios: a manufacturing firm that is having an issue with scrap rates a pizza delivery operation that is having trouble getting pizzas delivered in time a call center where some of the service reps are providing incorrect answers

In the next quarter we will implement a one day training program to ensure that employees understand the manufacturing process and ensure quality checks. We will reduce our scrap rates by 20 percent. This next month we will implement new time schedules that breaks up steps in the pizza making/delivering process into time segments so that employees will have better time management. We will ensure that the pizza process takes no longer than 30 minutes. In the next month we will hire a new informations employee that the service reps will be able to reference for any unknown questions. We will also implement a one day training program that will focus on reviewing our company's FAQ's and how to utilize/communicate with our new information employee.

Have you seen any of these reasons for failure surface in your work experience?

I have been a hairstylist for the past seven years and I have seen many of these errors occur in my work place. The first error discussed in the article, Not Establishing a Great Enough Sense of Urgency, has come up frequently. The hair industry is incessantly changing and in order to be successful one must keep up with the times. On page 4, Kotter states, "Sometimes executives underestimate how hard it can be to drive people out of their comfort zone" (4). Often times, stylists have found a great way of doing something and become complacent and comfortable. However, if we aren't able to show adaptability then we won't be successful in the long run. I saw this when my shop switched from a franchise to corporate. There were many changes that occurred and it became a longer process because of hesitation from stylists. Another one I have seen is error number six, Not Systematically Planning for, and Creating, Short-Term Wins. If people don't get reminded that they are doing a good job or working towards positive transformation it is easy for them to lose sight of the main goal. "...losing momentum if there is no short-term goal to meet and celebrate" (8). Short-term goals and victories can be a huge factor in the long-term success of individuals work and the entire organization. For example, in our shop we have weekly goals for ourselves as well as the shop while doing big product sales. During these sales we compete with other shops nationwide. Setting weekly goals for ourselves allowed us to have mini-victories instead of a long goal that was easier to lose sight of. In the progression of change, it helps to have time-based goals so workers don't feel all changes happening at once.

What are the potential ramifications of not paying attention to change management?

If change fails to be managed, the magnitude of the transformation will be decreased, and the time to realize the transformation will be increased. This means that the change will not happen to the extent that it was hoped and will take much longer to accomplish. With managed change, stakeholders will have lower expectations; therefore, their "despair" at the change will be much more minimal, and they will appreciate the effects of the change implementation much more. However, when change management is not payed attention to, the stakeholders will have much higher expectations and will be that much more disappointed when the change takes effort and is very complex. It will not seem as worth it to them in the end.

Describe the following 4 Six Sigma roles and explain how they differ from each other: Champion, Master Black Belt, Green Belt, and Black Belt.

In Six Sigma, the Champion is responsible for overseeing and guiding projects. Champions are the senior leaders of an organization and are typically c-level executives. They provide resources and ensure that the whole organization is informed about initiatives in their division or across the company. The Master Black Belt has been a black belt before, and they are responsible for training the green and black belt. They assist in mapping strategy and determining who works on what project. The green belts and the black belts have a certain level of expertise who leads and manages projects. The difference between the black belts and the green belts is that the black belt likely does this full time, whereas the green belt splits their time and works on improvement in things that affect their division. The black belt will work on improvements throughout the entire organization.

Assume that you are building a case for a project to reduce hold time in a customer call center. Explain what kind of information you would put into the business case to help build a sense of urgency and answer "Why this project, and why now?"

In order to build a sense of urgency, a threat opportunity matrix would be beneficial. This matrix shows why change is necessary and the benefits the change will bring. The threat opportunity matrix includes the external threats that can potentially be a roadblock to the success of the organization. The opportunity section includes external opportunities that the organization can take advantage of. The 3-D Matrix can also help to establish a greater sense of urgency. The 3-D Matrix presents hard facts and data, how the effort has been demonstrated, and the demand for the change. It might also be important to add what potential stakeholders might be saying about the problem because they have an impact on how the project might be carried out or even how the project might be funded. The last thing that could be added is a benefits case that simply presents all the benefits to the proposed changes.

Describe the lessons you learned from the M&Ms exercise about operational definitions and data variability due to the measurement system. Describe several ways to reduce the variability of data that arises from the measurement system.

In our M&M experiments, we learned that not having operational definitions can cause large variabilities in data. We found that subjects overall ended up being slightly confused because they did not and could not find a way for the M&M's to meet their requirements. They eventually found out that this is because of the lack of operational definitions and the fact that they had different requirements. This then caused them to have variability in the data. Ways to reduce this variability would be listening to the voice of the customer, understanding what their needs and expectations are from your product, and then coming up with operational definitions that will act as a common standard across your whole company to understand when your product has been produced truly up to standard.

Describe the key information, tools, and documents that you would include in a project storyboard for each phase of the DMAIC cycle. For each tool listed, explain what information you would expect it to convey to the viewers of your storyboard.

In the Define phase, you would use team charter, customer requirements and as-is process for the first phase of the cycle. For the Measure phase, you would use a data collection plan and collect data. For the Analyze phase you would want to use problem statements and charts for this phase. In the analyze phase, you will also want to verify the root causes. In the Improve phase is all about ideas and solutions and finally for the Control phase you will want to lay out your control plan and discuss how you came up with your solutions. Having these story boards and these tools helps the team understand the effort that needs to be put into it to help it move forward.

What have you learned from your Pareto analysis if no category shows up as dominant?

In the lecture it was discussed that no information is good information. In this case, if not dominant issue is coming up you'll have to go through the four Ws and figure out where the issue is coming from. As you go through each W, you will be able to figure out where to focus your energy and where not to. This will help you decide where the issue is coming from.

Describe the thought processes and considerations that need to take place in setting up a strategic VOC listening system. Should all customers be listened to equally? Explain why or why not. List several listening posts that could be used to gather VOC at a university. Explain how the information gathered could be used for both new product development and quality improvement.

In the process of setting up a strategic VOC listening system, the organization must know that several types of comments will come in and they should also know what they can do with the information they receive. All customers should be listened to equally because all types of feedback are important. Positive feedback can include ideas and requests, which can lead to growth. Negative feedback can enforce quality in work and product, as well as a stronger retention strategy. To gather the voice of the customer at a university, specifically the University of Minnesota, organizations have most frequently used surveys and focus groups. Other listening posts that can be used include complaints, call monitoring, and web chat. As mentioned previously, whether the information is positive or negative, it can be used to create new ideas and growth, or reinforce retention and quality management.

Why is it important for a Black Belt to know what stage the project team is in?

It is important for a black belt to know the stage that the project team is in because they fulfill many roles, including their role as a change agent. The black belt must be aware of current plans and practices, and how they will impact future plans and initiatives. Black belts are catalysts for change in a project, so they should know where are project has been in the past, where the project currently stands, and the required steps to move the project forward. The black belt is also an important figure in regards to initiating change management, and ultimately, improvement. The black belt has to know what stage the project is in to know how to change, adapt and grow.

What is the best way to describe the population center for the data in a right-tailed histogram? Why did you choose that approach? Give an example of some data that would display as right-tailed when charted.

It is the median because what happens with the mean, is that it is pulled out to extreme values. The median is the average and is chosen as the approach because it does not get pulled out to the extreme values. The median excludes the outliers and presents the best population center in a right tailed histogram. Cycle time data is one example, another example is the prices of homes. They cut off the high low points and then talk about it from a median standpoint.

What advantage does piloting a solution offer? Let's say that you are working with McDonald's and have developed a new kitchen layout for their franchises—how would you use piloting in rolling out the new kitchen concept?

It's best to pilot something so you have an idea of how it's going to work, how people are going to react and the benefit or cost of it. The benefit of piloting the new kitchen concept would be to gauge people's responses to the new layouts and design. What sort of design is going to work best for the staff. What sort of machines are going to be needed to make the most efficient kitchen. What sort of lay out is going to be best for the restaurant and makes the most sense. This way you are able to get a good idea of what is going to work, what people like and don't like, what works and what doesn't. This will help to limit the total cost loss too so you're not wasting money. "Pilot gives us the opportunity to define the cause-and-effect relationship of root cause and solution." (15:03 lecture slide)

Explain, with examples, why large variation is often very upsetting to consumers.

Large variation is often very upsetting to consumers because it increases unpredictability, reduces capacity utilization, makes it difficult to find root causes and makes it difficult to detect potential problems early on. Variability also causes a company to have to carry more inventory, staff and increase their resources. When a consumer is on hold for a phone call for a variation of 5-25 minutes, that results in an upset customer.

What level of sigma performance is better, 2 or 5? Explain why. Is it more difficult to move from 2 to 3 sigma, or from 5 to 6 sigma? Explain why.

Level 5 sigma performance is better than level 2 because it only has 3 defects per million opportunities and a 99.99% process yield. This means that out of every million opportunities a 5-sigma company has to produce something, it only messes up 3 times, and 99.99% of the time it is producing these things correctly. Level 2, however, has up to 308,770 defects per million opportunities and a 69.12% process yield. That means that out of every million opportunities a 2-sigma company has to produce something, it messes up about 308,770 times, and it only has correct production 69.12% of the time. It is much more difficult to move from 5 to 6 sigma than it is to move from 2 to 3 sigma because the scale from 1 through 6 is not linear. It is more difficult as you go up the scale because the magnitude of change is much greater as you near perfection.

Why are so many costs of quality hidden or hard to detect?

Many costs of quality, or more specifically, poor quality are hidden because when quality costs are initially determined, the categories that include determinants of poor quality are quite narrow. In addition, when every activity is performed without any deficiency, costs of poor quality could disappear, or become hidden. The discovery of deficiencies, as well as internal and external failures, would help to reduce hidden costs, which would allow organizations to cover those costs on a timely basis. The knowledge of this information can help identify remedial tactics to help the organization to have fewer hidden costs and fewer detrimental costs overall.

What is meant by measurement variability?

Measurement variability occurs when there is a variation in the measurement process. It occurs when nothing has changed in the product, but one person says a pen is blue, another says it's black and someone else says it is gray. It is an inconsistency in the measurement process and can lead to customer dissatisfaction. However, process variability is beneficial because it allows for a wider range of issues to be determined and fixed, and can help improve the overall quality versus simply the quality of one or two things.

Is measurement variability a good thing? What can it lead to?

Measurement variation is not a good thing. When not met, leads to dissatisfaction and ignores the voice of the customer. Measurement specifications are defined from listening to the voice of the customer and understanding what the customer's expectations are for the output.

Provide 3 other examples from your experience where you have seen measures drive adverse behaviors.

One example where I have seen measures drive adverse behavior was in my current workplace. I am a residential advisor on campus, and we were having a serious issue with students vandalizing and stealing exit signs. We decided to add blue paint to every exit sign in the building, that would come off on their hands to indicate who is stealing signs. However, this emboldened students , and the weekend following the addition of paint, we saw the most vandalism out of any weekend. Another example of where measures have driven adverse behavior was when my summer workplace allowed consultants to submit all of their rush marketing projects in one week. After this, we faced many costs and projects that we were not fully equipped to handle. Another example is in a case study I recently completed, and we were running a virtual business that sold microcomputers. We decided to manufacture and sell the most high tech expensive computer, and even though we thought we would get a high return, we ended up losing a lot of money because we poorly analyzed our audience.

How could mistake proofing techniques be applied to reduce measurement variability?

One mistake proofing technique is to create a chart or map that shows every single step and allows for individuals to analyze each step and where errors could occur. This technique would be good for those who are conducting the experiment to closely look over so they can remove any avenues for bias or variability in their questions and planned procedures. In addition, those who are conducting the experiment can conduct the experiment as a test first, to see if they run into variability and any errors they would not like to encounter with the actual test group.

Why has traditional accounting failed?

One reason traditional accounting has failed is due to the obstacles affecting quality management and other initiatives in which emphasis is placed on external reporting. As stated by the article, "the initial financial data are captured in a format that does not lend itself to decision making" (Cokins, 2006). It further states that "management lacks a valid cost base against which to compare the expected benefits from improving or reengineering the process" (2006). Furthermore, process management suffers from a "lack of an obvious and reliable method of measurement that consistently indicates the level of resource consumption (expenses) by the business processes at any given time - an indicator which always interests executive management and is easily understood" (2006). Essentially, most businesses are clueless about the costs of their processes, or the various outputs associated with the processes. The traditional accounting method has failed because the cost data in the format of salaries, supplies and depreciation "are structurally deficient for decision support, including measuring COQ. They disclose what was spend but not why or who or for what" (2006). In order to be useful as data, the expenses must be "transformed into the costs of products, services and customers that uniquely consume the costs of the various processes" (Cokins, 2006).

Discuss 3 ways/scenarios in the post 9-11 world of terrorist's threats how RFID could be used to improve security.

One way in which RFID could improve security is to track checked bags through the airport with identification tags. People can pack whatever they like in checked baggage, but it should be scanned for dangerous materials and tagged if it could be of harm to anyone. This information could be reported back to TSA and airport employees to improve security measures. Another way RFID could improve security is in corporate buildings, where guests are required to check in with a photo and other forms of ID. Name tags using RFID would be a uniform way of keeping track of who enters and exits the building. Another way that RFID could be used to improve security is with theft in retail. Putting RFID trackers on items might be a beneficial way to keep track of where things go and where they were taken from, and it might be especially helpful for law enforcement officials.

How might we control or reduce measurement variability?

One way to control or reduce measurement variability is to establish a strong set of rules or guidelines for participants in the experiment. Letting them know what they are looking for before they start examining the product will reduce measurement variability. Another way to reduce measurement variability is to perform the process several times or with a larger amount of people.

Discuss various ways to reduce or eliminate the achilles heel.

One way to reduce or eliminate the achilles heel in Six Sigma projects is to fully establish the requirements, deadlines, and responsibilities of a project before taking it on. Some roadblocks are inevitable, but knowing as many as possible before they come up can eliminate issues that slow down a project. The objective of the project must be clear. In addition, there can not be too many objectives. The project may lose focus if there are an excessive amount of goals and objectives. Another way to reduce the achilles heel in Six Sigma projects is to shorten the timeline of the project. Projects longer than six months can become stale, and individuals may lose interest and other priorities may arise.

How does the concept of operational definitions tie into this exercise?

Operational definitions allow us to have a shared understanding and common meaning for everyone. They are valuable for controlling and minimizing variation in the measurement process. For example, when looking at M&M's and someone says one piece of the candy is chipped, and another person says it isn't chipped, that creates variation in the measurement process. Nothing has changed, but it creates variability and clouds the measurement process. From listening to the voice of the customer, the outputs delivered are based on specifications. If the customer requirement isn't met, it leads to dissatisfaction. Once the specification is determined, the output has a standard to be measured against.

Discuss how other companies in retail, manufacturing and service could apply RFID to improve customer experience and bottom line results.

Other companies in retail, manufacturing and service could definitely use RFID to improve customer experiences and bottom line results. One example that I have used is the Samsung Galaxy smartphone. The phone comes with many features, including a heart rate monitor. This is a feature that many use before and after working out and during rest periods, to monitor their health. This improves the customer experience, since this feature is not just for calling and texting like many phones are. In addition, the feature promotes the integration of technology to make it more efficient for those who sell monitors and for those who use them.

Discuss the concept of "pathways"

Pathways are a way to establish treatment formulas for patients in a hospital. These pathways are like decision trees that direct medical professionals to the right steps. It is almost formulaic like a cookbook, which is where most of the criticism comes from. Pathways ensure standardized care, which makes sure that the best practices are followed and that the most recent treatment is used. The pathways are created by leading physicians. It is the main way that protocol is followed in the children's hospital in San Diego. All in all, the program is meant to bridge the gap between standard care and the highest quality care.

Describe some potential scope issues you might include for the call center project. Also show these issues using the "in frame / out of frame" tool given in the audio lectures.

Potential scope issues included in the call center for a project are: What is the right perspective we want? Do we zoom in and want things really tight? Or big broad expanse of things so we can capture the entire picture? What is the right level of zoom?The scope includes the ability to identify and get a clearly defined project scope so everyone can be on the same page. It answers the question, what are we working on what is the task at hand? A potential scope issue is the idea of a scope creep: which is external pressure, saying hey let's take a look at this too, then you're project is out of control out of scope. Scope brings you back to what you are trying to achieve. If scope changes, then maybe timeline and resources change in discussion. In Frame/Out of Frame: Determines if the idea is "in scope" or "out scope," outside the frame. Some things end on the frame which serve as points for discussion. The next question asked is should they be in or out of the scope? This is then Clarified by champion sponsor for that project.

Explain how to use a process map together with an FMEA to identify improvement opportunities and determine which of them should be addressed first.

Process mapping and FMEA can be used together to ensure that the methods you have laid out for your business are being well assessed. The first thing you would want to do is the process mapping because this is used as input for the FMEA. After that is done then in the FMEA you are able to look at your processes and evaluate what can go wrong and what effects that might have. Defining these failures can then help you analyze what can cause them and at the root of it, you can go on to solve the issues at the core. Doing both of these steps together can allow to not only plan your processes out to create a path for your business, but will also allows you to look at the plan you have delivered and troubleshoot any possible failures that may arise. Doing this allows you to get a kind of head start at improving your process rather than the likely event that you would encounter these process later.

What is the "Achilles heel of six sigma"?

Project selection is the Achilles' Heel of Six Sigma (Snee, 2001). Projects must be clearly connected to the company's' priorities. It needs to be very important and something reasonable to fix. The project needs to be managed well by managers such as Black belts or Green belts that are focused and dedicated to the project. The project issues and outcomes need to be clear and have a specific timeline and objective. The proper project must be chosen wisely in order to be successful. If results aren't meeting or don't meet the bottom line results that are expected then companies will lose interest, money and time. Which are all valuable to keeping things running smoothly using resources appropriately. There are two main problems that need to be fixed, Problems known and unknown. Problems unknown are the ones Six Sigma addresses. A main issue and reason why projects fail is if they don't have a proper timeline. "An unrealistic scope is probably the most commonly encountered cause of project failure" (2001). Projects need to have a realistic and attainable timeline in order to keep interest and be the most beneficial to meet the bottom line.

How did data display help shed light on the problem?

The data display help shed light on the problem by highlighting the fact that in the "860,000 claims" Medicare failed to include information on the Medicare Advantage Patients and patients who passed away during their stays. This distorted the data because Medicare Advantage Patients "receive benefits from private insurers," as well as the amount of time a patient spent in the hospital on average.

Discuss how Disney is using RFID to both improve customer experience and positively impart its bottom line.

RFID improves the customer experience because it can be used for everything, versus having tickets for each ride, having paper tickets to show that you have a FastPass and other cumbersome tasks. The MagicBand allows access to the park just by swiping the wristband. The MagicBand is also linked to the credit card, so purchases can be made just by swiping the band. This positively impacts the bottom line because there is less arduous work to be done, such as picking up and recycling paper, staffing ticket booths, and dealing with credit and debit card issues. RFID greatly improves the efficiency of the park and its' employees.

Describe several ways that you have previously observed and effectively dealt with resistance in the three settings: school, work, and personal (family or friends).

Resistance to change often happens when the benefit of change is not clear, but this isn't necessarily a bad thing. I have observed resistance in school when textbooks and homework assignments appeared online rather than on paper. Many students and teachers thought the digital way of doing work would prevent students from absorbing the material, but the opposite has proven to be true. Eventually, students and teachers alike realized the value of online activities, not having to carry or pay for heavy textbooks, and recognized the value of integrating video and audio into homework. I have also seen resistance in a work setting when I was a lifeguard and my manager decided to remove chairs from the lifeguards and have them stand at all positions, for safety reasons. As expected, many lifeguards were upset and contacted a top manager at the company that certified our lifeguards. A professional came in to rezone all of the positions so that half of them were able to keep the chairs. This was a better situation for the lifeguards than no chairs at all, so they stopped protesting the change. Another time I experienced resistance in a personal setting was when I switched my major from chemical engineering to industrial and systems engineering. My mom, who was supportive of my chemistry-based major, was upset that I was no longer going to be in the reputable program at the U. She remained hesitant about embracing the change until my grades started to improve because I was studying something I was actually passionate about.

Choose 3 of the tools discussed and provide REAL LIFE examples of how they with their accompanying data / information can support improvement either in an organizational setting or your personal life.

Scatter plots are a great tool to use when you're comparing two variables. If you are trying to address some sort of change, make a scatter plot with the data to show the comparison. It's a great way to address the data and stress the urgency for change. Check sheets are always a good tool to use because it's a clear and simple way to do a quality check and make sure everything is working and is functioning at the highest quality standard. Like the scatter plot, a Cause and Effect diagram is a great way to show the data when stressing the urgency for change. Cause and Effect diagram is a great way to show the cause and effect behind the product, need for change and customers wants/needs and how it would make the product better.

Explain why correlation doesn't necessarily mean causation on a scatter plot.

Scatter plots show relationships between two variables. The correlation of these two variables may be strong, but it does not imply causation because what causes the correlation might be an external factor, or it may have occurred purely by coincidence. For example, ice cream sales rise when crime rises. These two variables have a strong positive correlation, but it does not at all mean that the increase in ice cream sales is the reason that there is an increase in crime. This relationship is most likely influenced by external factors. A potential outside factor that might influence either factor is a change in season.

Why do you think some companies may be resistant to having an OSM?

Some companies might be resistant to having an OSM because of the process that comes with designing an effective OSM and putting together the team who works on the OSM. Organizations might also shy away from having an office of strategy management because of their role in helping top executives identify strategic initiatives and goals. It appears that an OSM might take away from executive decision making and the top-down decision making style of the organization. The integrative process of adding an OSM may appear daunting to some organizations that worry that they do not have the time, money, or other resources to effectively launch an OSM, when the OSM could be very helpful to the organization in the long-run.

What do you feel are some of the biggest hidden costs to organizations as they relate to poor quality?

Some of the biggest hidden costs to organizations as they relate to poor quality are appraisal and inspection costs, internal failure costs, and external failure costs. Appraisal and inspection costs include inspecting deficiencies in products before they reach customers. Internal failure costs include discarding or fixing issues in products or services that customers do not yet see. External failure costs include costs associated with the correction of issues that affect customers. This means that the customer has already come into contact with the product or service and has experienced a deficiency in the product. External failure costs are also usually the most expensive costs to correct.

Describe some key considerations when selecting Six Sigma projects.

Some of the main things to consider include ensuring that the project has a strategic value. This is in reference to the goal tree, where the strategy is an important part of achieving a goal. Another thing to consider is that risk must be considered and a risk analysis should be conducted. This is in regards to the financial impact of the project. The burden of this project on employees and their ability to manage the product must be taken into consideration. It is important to make sure that the scope of a project is not too broad or too narrowly focused, and that the goals are well-established with effective strategies. The correct roles and responsibilities need to be assigned to qualified individuals who will not see the project as a burden.

Discuss the importance of strategic alignment. How can a goal tree be used to achieve strategic alignment? Assume that your organization has a goal to reduce inventories—develop three strategies to support this goal and two projects to support each ot the strategies (six projects in all). Populate your answers on a goal tree.

Strategic alignment is essential in ensuring that efforts remain focused and goal-oriented. Strategic alignment enforces the idea that all individuals should be moving in the same direction, with the idea that the organization also moves in that direction as a unit. When strategic alignment is not present, people can work hard on their separate projects, but the organization may not be effective together. A goal tree can be used to achieve strategic alignment because it lays out the goals of the organization, the strategies needed, and the projects that must be taken on to achieve alignment. The goal tree establishes the 'what', which are the goals, and ultimately reaches the 'how', which includes the projects. The goal tree is incredibly helpful because it ensures that all members of a team/organization works on important projects that can help the organization to move in the right direction. Our Goal Tree Assign 2 team members to do weekly count Weekly Inventory Count Use Excel to mark products and inv. # Find out which products don't sell Reduce Inventories Eliminate products not in-demand Slowly phase out low-sellers (sale) Link customer survey post-purchase Survey customer needs/demands Incentivize customer survey

Why is it important to describe the "soft" (not financially quantifiable) costs, opportunities, and benefits of a project?

The "soft" costs are very important to consider even though they may not be financially quantifiable. Although they can't be represented financially their effects can still be a big impact to the company or product. For instance, loss in customer satisfaction could be a soft cost and even though you can't put any numbers by it, a loss in customer satisfaction could result in more customers choosing not to use or product and this would then result in a loss of revenue. All these soft costs/ opportunities/ benefits are important to consider because they may not be financially represented now but could be seen in the future.

Explain how you could apply 5S techniques to make your work or study space more effective and efficient.

The 5S techniques could greatly improve my study space. For organization, It should be key for me to know where things are so I don't waste time looking for them and also keeping things that I use frequently closer to me, such as my notebook or pen. Keeping my desk neat is also essential to help me stay focused. Getting rid of clutter both around my work space and on my laptop help me stay focused at the task at hand. Having tabs open on my laptop that I don't need causes clutter and makes me lose focus. Cleaning helps me see things more and gets things out of the way to understand what I need to focus on. For standardization, I think it would help to always keep the 5S' in mind when I study. Sometimes I forget to do these and as a result I end up being less productive or wasting more time on creating my study space than actually studying. Lastly, I plan to have the discipline to act upon these regularly and without thinking. Having the discipline to do the 5S will hopefully make my study space more efficient in the future.

What are the four perspectives in a balanced scorecard system?

The Balanced scorecard system supplements traditional financial measures with three additional perspectives to simultaneously track financial results and intangible assets that contribute to company growth. The three additional perspectives are those of customers, internal business processes and learning and growth. The first perspective in a balanced scorecard system is the Financial Perspective. This perspective answers the question, "How should the company appear to the shareholders in order to succeed financially?" (2007 July-August). The second perspective is the consumer. This perspective looks at the concept, "To achieve our vision, how should we appear to our customers?" (2007 July-August). The third perspective is Learning and Growth. This perspective answers the question, "To achieve our vision, how will we sustain our ability to change and improve?" (2007 July-August). The last perspective is the Internal Business process. The Internal Business process revolves around what business processes the company must excel at to best satisfy the consumers and shareholders.

Explain why the Baldrige model is an outstanding model for running an organization. Name two Baldrige winners in the past year and the category they won in. Discuss how the seven components are linked to each other.

The Baldrige Model is great for companies because it helps them better identify if the plans they have in place are doing what they are intended to do. Baldrige forces companies to compare the results with the actual plan and provides a common language of a path to success, without requiring companies to already have been doing things a certain way before using Baldrige. The seven components of the Baldrige Model are Leadership, Strategic Planning, Customer Focus, Measurement, Work Focus, Process Management, Results. These components are all related, designed to start with leadership so management can lead the organization in the right directions. Analyzes strategic planning methods so the company can know if the strategy is really doing what's intended. This leads into their customer focus so in their strategic planning the company is focused on meeting the expectations of their customers. To help meet these expectations and analyze their strategic planning, management needs to have accurate measurements and knowledge of their operations and data. This connects to workforce and process management because having accurate measurements and data helps the company identify where they are lacking in workforce and in their processes. Lastly these connect to the company's results and examines the company's performance compared to other companies and the market. Recent winners are Don Chalmers Ford and Momentum Group, both in the small business category.

Discuss the Kan Model as it relates to must haves / delighters and satisfaction / dissatisfaction.

The Kan Model functions as an X-Y coordinate grid. From left to right, the X-Axis ranges from an absent feature, to the present feature. From top to bottom on the Y-Axis, the top is a satisfied consumer, and the bottom is a dissatisfied consumer. Something that presents a WOW today in the top left quadrant, will become the norm over time and move down to the bottom right quadrant. The "Must Be" category states that if a feature is present, it creates neither a pro or con. However, if the feature is absent, it creates a disatisfaction. For example, lights, chairs and language. The "Attractive" category states that a feature present surprises the consumer, but if absent will go unnoticed. For example, one cent stamps and self-diagnosing software. The "one dimensional" category states that if a feature is present, it will create satisfaction. And that if the feature is absent it will result in dissatisfaction. For example, wait time, cost, bill accuracy and service speed.

Discuss how delighters tend to migrate over time. Provide an example of a "delighter" and a "must have" from (1) your personal life and (2) your work or school life. How are organizations using Six Sigma as a leadership development tool or pipeline?

The Kano model discusses customer satisfaction and attractive qualities. "Must be" qualities are things that we absolutely require and expect in our products. We expect them to be part of our products when we are purchasing them. When they aren't there, it causes dissatisfaction. Delighters are items that aren't required or expected, and are a nice surprise. Since we weren't expecting them to be there and it wasn't required it doesn't cause any dissatisfaction. Over time, things that were delighters become must-haves. What was expected last week or a few years ago is going to be required today and next year. An example of this would be cell phones. I use my phone for personal use, work and school. I have internet accessibility wherever and whenever. When cell phones appeared with cameras, it was considered a technology breakthrough. If you had a cell phone with a camera in it, you were lucky. Today, we wouldn't think to buy a phone without the best camera because that's a lot of people's main camera! It's something we've gotten used to and has become a must-have. I wouldn't purchase a phone without being able to access the internet as easily as I can because it's efficient to use for work and school. Companies use Six sigma in leadership development because Six sigma is all about not having defects. When you use that as your main leadership development, you're always striving for the best quality. Relating this back to the Kano model, you're always ensuring that the products are updated with the "must-haves" and striving towards new delights. 2

Describe the key lessons you learned from viewing Dr Deming's Red Bead experiment. Relate these lessons to some of Dr Deming's fourteen points

The Red Bead experiment tackled various methods of quality control and teaches lessons on which methods are productive and which ones are just seemingly productive. For instance, it touched on managerial feedback and motivating the workforce. However, the video explains that motivating the workforce to simply try and improve production will only increase in more of the same, causing the same mistakes to happen. This can be interpreted in Dr. Deming's 10th point of eliminating exhortations and slogans. Giving the workers slogans or advice to keep doing better will still not fix the basic process. Another lesson that is seen in both Dr. Deming's points (Number 11, don't set quotas) and the video is the process of setting numerical goals. Both sources point out that setting numerical goals will not change anything. Since the process has not been changed, you will still get random outcomes of being below and above average. The video points out that it is better to look at the control charts and analyze what the company needs to do to it's process. One other lesson learned in the video is to include the worker's input in the discussion of quality improvement and utilize the good ideas of the work force. Dr. Deming also touches on this by mentioning, "remove barriers to pride of workmanship". This is a reminder not to see your workers as a commodity but to also allow them to know that their thought and input is important.

Discuss 3 improvements from a change management and process improvement standpoint that could have potentially prevented the failure.

The biggest change that should have been implemented, even though frowned upon, would have been to postpone the opening time for the Target stores. It seems as though the the majority of issues arose from the ambitious schedule. Making this change would have cost money in rent of property, but would not have been nearly as much of the cost of the amount of the complications they had and the lasting implications of unsatisfied customers. After making this change it would make way to include another change of improving the training process. It is known that Target already actually had a reliable training method for their new hires and given the change in delaying the open, they would have time to ensure that the new hires had the tested and true training methods Target already had. Lastly the delay would also ensure the company would have time to improve their inventory process. The change to be implemented would be to analyze the technology for their inventory processes and use the delay to make the necessary adjustments.

Describe Taguchi's thinking about the difference between the loss associated with striving to be "between specifications" versus trying to achieve the target.

The conventional chart shows that there are goals in satisfaction and that the customer goes simply from satisfaction to dissatisfaction if the product goes out of the line of specifications. However, Taguchi explains that a customer would be dissatisfied if it doesn't hit the target of satisfaction every time but notes that a there would be a little bit of dissatisfaction for each "point" the product is lacking. To illustrate this, Taguchi utilizes the interpretation of loss chart, but it appears as more of a graph than it does a goal post, showing a loss in satisfaction as the product quality strays further and further from the target until reaching complete dissatisfaction. Taguchi proves the point that most customers are only completely satisfied at a certain specification. He points out that if a product is lacking then most customers would be dissatisfied to a certain extent but will still accept the product. He proves that this results in a loss but not a complete loss because customers will still accept the product but there would be room for improvement. Taguchi's method seems much more reasonable because most customers dissatisfaction is less like an on-off switch and more like a spectrum.

What is the relationship between defect rate and process yield? Is it possible to improve a process without calculating its sigma value?

The defect rate is the rate at which defects occur in products or services. This relates to process yield, as process yield is the percentage of non-defects out of the total number of defect opportunities. It is possible to improve a process without calculating its sigma value. But the extent to which the process is improved can be limited with the sigma value. The sigma value is valuable information that can inform the percentage of defects that might occur. The value is a good determinant of what needs to be done to move up or improve. The higher the value goes up, the steeper the journey to six sigma gets. This is valuable information needed in order to improve a process.

Explain the engine-rudder navigation model and how it ties together the concepts of operating reviews, transformational improvement, and operating metrics.

The engine-rudder navigation model is a tool representative of a metric and review system that includes operational metrics, strategic metrics, and management review and action. The operational metrics are represented by the engine. This is the day-to-day process of the organization, and the metrics associated with the daily occurrences of the organization. The strategic metrics are represented by the rudder. This section shows the strategies needed to reach goals, and the projects required so the implementation of strategies is successful. The strategic metrics mirrors the goal tree discussed earlier. Regarding reviews and transformational improvement, the rudder, or strategic plans, allows the organization to change direction if needed. The operating review, or navigation, reviews the metrics of the engine and the rudder to make sure everything is moving in the right direction. The navigation determines if there needs to be transformational improvement, and the engine and rudder work together to make it happen on a daily basis and in the strategic methodology.

Describe the two broad classifications or types of data, and give examples of each kind of data for the following variables: height, weight, and length. If you were caring for a child who was running a fever, which type of data would provide you with the richest information, and why?

The first broad classification type of data is: discrete or attribute data. Discrete or attribute data is broken down into three categories: verbatim, categorical and count. Verbatim is the narrative or customer telling you something. Categorial are items that fall into specific categories. Categorial data is broken down into "yes/no," unordered; no rhyme or reason as to how the categories are displayed, and ordered data; which provides logical orders to specific categories. The last category is count data which is the counting of events of something. It answers the questions of how many or some level of issue. Examples for each variable: Height: Are you over six feet or under six feet? Weight: How many times a week do you weigh yourself? Length: Is your arm span over or under 4 feet? The second classification type of data is: continuous or variable. Continuous or variable data describes as to what degree a specification has been met. It provides a range of data that can fall under any spectrum. It has an infinite amount of possibilities and answers the question as to what something is or is not. Examples for each variable: Height: How tall are you? Weight: What is your specific weight? Length: How long is your arm span? If one was caring for a child who was running a fever, the continuous or variable type of data would provide you with the richest information because it is more specific and can answer a question by what degree something is or is not. An example of a temperature of 105 degrees is continuous and "richer" than discrete "yes/no" that says "i'm hot."

Discuss the 4 broad categories of COQ components and provide an example for each category.

The four broad categories of COQ components are prevention, appraisal, internal failure and external failure. Prevention and appraisal are associated with conformance, and internal failure and external failure are associated with nonconformance. One example of prevention is quality education. Education is an important step in preventing quality missteps. An example of appraisal is measurement, to analyze the process and see how well it is working. An example of internal failure is defect removal, which is improving a product. One example of external failure is returned products, which shows dissatisfaction outside of the company's grasp, until the product is returned and fixed if it is faulty.

Describe the four quadrants or perspectives of a balanced scorecard. Which of the four perspectives is the most lagging indicator? Which is the most leading indicator? Explain why.

The four quadrants of the balanced scorecard include financial metrics, customer metrics, process metrics, and employee metrics/learning and innovation. These elements of the balanced scorecard help organizations measure their success in all areas, not just finance. The balanced scorecard helps to measure success and efficiency in customer satisfaction, organizational processes, and employee satisfaction, in addition to financial success. The most lagging indicator is the financial sector because the financial sector is similar to a results section, where you learn how well your organization has been doing. Financial metrics are not predictive. They are mainly based on past information and results, so it is a lagging indicator. The most leading indicator is the employee/learning and innovation section because it drives the process metrics, which drives the customer metrics, and so on.

Explain what is meant by the statement "Six Sigma gives us a common measuring stick."

The idea that six sigma gives us a common measuring stick is that it allows us to compare similar processes. It allows for some indication about the relative process performance. Essentially, it provides a commonality, and allows for us to compare processes of dissimilar outputs in a common way. This is beneficial to avoid any confusion between individuals and also can help set a standard for where you or your company needs to be when comparing to other companies.

What is this "incentive scheme"?

The incentive scheme is a change in the billing tactics in hospitals and their systems. This change skews data regarding hospital readmissions. The incentive scheme allows hospitals to avoid reimbursement penalties that they would otherwise face if they had higher readmission rates. However, the change in billing tactics and the resulting skewed data shows that an agency had hundreds of thousands fewer readmissions between just one year. Many hospitals face the penalty program, so they are essentially incentivized to follow what is depicted on the billing statement because they will not have to pay fees for an increase in hospital readmissions.

Explain the difference between control and specification limits. How would you change control limits? How would you change specification limits?

The main difference between control limits and specification limits is that control limits are determined by the process, while specification limits are determined by the customer. Control limits are plus or minus three standard deviations on a control chart. Specification limits are the customer requirements. To change control limits, the process would need to be changed. That may involve crafting a more streamlined and efficient process. To change specification limits, customer requirements would need to be met. To further change specification limits, since it is based off of the voice of the customer, some of the customer's 'wants' or non-requirements might also be met.

What were the major factors that led to the downfall of Target in Canada?

The major factors that led to the downfall of Target in Canada were an "overly ambitious launch schedule, an inexperienced leadership team expected to deal with the biggest crisis in the firm's history, and a sophisticated retail giant felled by the most mundane, basic and embarrassing of errors." Essentially, the company was having trouble moving products from large distribution centers to the stores, glitchy checking out and transaction processes, and a poor understanding of the technology that governed the inventory and sales. Nobody disagreed with the negative results of the assessment, which meant Target went forth with opening and quickly closing the stores in Canada.

Explain how medicare rules and incentives are causing adverse effects to patients.

The medicare rules and incentives negatively impact patients because there was a general decrease in patient readmission rates. However, patients were kept in hospitals for a prolonged period of time. Under certain parts of Medicare, the price paid by patients increases for longer stays, also known as observation stays. The rise in observation stays was a precursor for the decline in hospital readmission rates. These stays can become increasingly costly by the day. In addition, hospitals can move older patients to nursing homes, and sometimes Medicare plans do not cover nursing home care. This has even forced elderly patients to use money set aside for end-of-life care and ceremonies to pay for outstanding hospital bills.

Explain the ways that Six Sigma can be viewed as a metric, a method, or a philosophy.

The metric standpoint allows us to compare dissimilar processes across the organization. Based on the chapter three Study Notes, this viewpoint focuses on how well the company is doing based 3.4 defects per one million opportunities. The method viewpoint focuses on using applications such as the DMAIC (Define, measure, analyze, improve and control). This approach begins with clearly identifying the problem, following it and developing a long term solution. When the Six Sigma is viewed as a Philosophy, a company strives for excellence and works towards improvement. This view presents perfection and zero defects. Essentially, the philosophy viewpoint recognizes that all process are defined, measured, analyzed, improved and controlled. The philosophy viewpoint states that if you are in charge of the inputs going in, you have control over the output.

Which perspective is the most lagging indicator?

The perspective that is the most lagging indicator would be the financial perspective. Lagging indicators are not as immediately measurable as leading indicators, and result in implementing and monitoring certain protocols over time. Financial perspective indicators include return on investment and revenue growth, which are both not short-term. They take time to analyze the results and include it in changes to be made. On the other hand, the other perspectives (consumer, learning + growth, and internal business process) all have leading indicators in addition to their lagging indicators; this means that while they are able to obtain meaningful data over a longer period of time, they also can obtain short-term results from things like customer retention, revenue from new products, and employee satisfaction.

Describe the reverse brainstorming technique. Provide an example of how you might apply this technique in a manufacturing process where the root cause is excessive machine repair time.

The reverse brainstorming technique is when you think about how you can make the problem worse. You go through and brainstorm ideas on how to make the current situation worse and than you go through those ideas and say, ok , if this made it worse, what is the opposite that can make it better. In a manufacturing process you would want to use this technique and think about how you could make the repair time even worse. If the machine repair time is a big problem, how can we make it even worse. After brainstorming those ideas, consider the opposite to bring you to a quicker solution to machine repair times.

What is the risk when the "other" category becomes too large in a Pareto chart? What could cause this, and what should you do when you notice this?

The risk when the "other" category becomes too large in a Pareto Chart is: there may be miscategorization, or there may be a new category developing. The causes of this are the need for better training, that there is some training issue going on causing variation in the data. Or, it could be the need to open the bucket up and investigate what is going on, is there a need for a new category or better training? When the "other" category is big there is a high degree of uncertainty. It should be noticed when analyzing the Pareto chart, and observed that the "other" category is extremely large.

What are the steps of the TOC methodology for improving a process? Give an example of how you would apply these steps in a service or manufacturing process.

The steps of the theory of constraints for improving a process are to identify the bottleneck, or the weakest link on the chain, exploit the bottleneck, subordinate to the bottleneck, and elevate the bottleneck. In a service or manufacturing process, such as service in a restaurant, staff can recognize where the weakest link is, whether that is a shortage in the kitchen or a shortage in wait staff. Then they can exploit the bottleneck, by using the resources in the restaurant to the greatest advantage of the customer and at maximum capacity. Then, the restaurant staff can analyze what is going on, by subordinating the other links to the weakest link. Finally, the restaurant staff can meet and determine what efforts and resources should be put towards eliminating the bottleneck and improving the efficiency of the restaurant.

Provide an example of 3 products or service your group feels are worthy of "promotion". Explain why your group chose these examples.

The three products/service our group chose are the iPhone, Wally's Restaurant, and Gopheralls (Gopher themed overalls). We chose these three because they all have a different reason for why they might be promoted. We chose Wally's Restaurant because often times people will promote something simply because they want you to know they were the first there. Additionally, it is a great restaurant and it isn't the most popular outside the U. Many people are more likely to promote it, so they can feel they were apart of the initial support. We chose Gopheralls because another reason to promote would be by trend. We would choose to promote these because many people wear them and it is a "safe" promotion. Lastly, we chose the iPhone because sometimes people promote things because they actually like them, we chose to promote the iPhone because we all love our Iphones.

Describe the two types of variation then give an example of each in both a customer service process and a manufacturing process. What action you would take if you found special-cause variation?

The two types of variations are common cause and special-cause variations. Common cause are variations that are always present. You can minimize them but you cannot completely get rid of them. An example of a common cause variation in the manufacturing process could be inappropriate procedures. For instance, an employee might be reviewing papers and some days it might take him longer to review those papers than other days causing a variation in time of completion. Special-cause variation is something that is out of the ordinary and lie outside of the control limits. For instance, a customer service process example could be if the website for a food delivery system went out so all customers could only make phone orders. In the case of a special cause variation you would isolate and address the problem and find a way to fix it immediately to eradicate it

In the U of M course registration process, what are the value-added steps? What are the non-value-added steps?

The value-added steps in the U of M course registration process would be "Add classes to registration shopping cart" and "Register for classes" because those are completely necessary to register for courses here and customers (students) are willing to pay to register to take classes. The non-value-added steps would be "Decide which classes to take for the semester" and "Decide which specific class section to take for each class" because while they are not necessarily valuable enough for customers to pay for, it is necessary to take these steps to figure out which classes they will be registering for.

Describe the various roles that a Black Belt must fill.

There are four roles a Black Belt must fill. These roles are coach, expert, consultant and facilitator. 1. Coach: support individuals, groups in achieving personal organizational performance goals. Further manage all the personal conflicts. 2. Expert: Serve as an advisor in the use of methods and tools for performance excellence. Do not need to be an expert in the topic, but in the tools and techniques in driving change and analyzing things. 3. Consultant: assist groups in making changes. Not forcing change, facilitating it by adding advice. 4. Facilitator: Assist in building teamwork, accelerating progress, keeping team on track. Need to sustain progress, intervene effectively and establish a foregoing trust.

Discuss the difficulties associated in tracking the food supply and how RFID assists.

There is a lack in careful record keeping of the greens that are transported across the country. The lack of this information makes it difficult for companies to trace outbreaks. They can trace multiple farms and visit them all, but it would be much more efficient to track down the one source and stop the issue from there. RFID assists because it will attach identification tags to bags of leafy greens, indicating how and where they move, as well as tracking where contaminated produce comes from, down to its' location on the field. This will hopefully decrease the amount of E.coli outbreaks that occur due to the mixing of contaminated and fresh produce, and its widespread distribution across the country.

Why would a project champion be especially interested in the results of the impact wheel before approving funds and resources to implement the proposed solution?

These individuals would be most interested in the results of the impact wheel to see how many green and positive or red and negative circles the wheel ended up with. If there is so many more negative than positive they might reconsider approving certain funds. On the contrary, they is likely to be a greater provision of funds given that the wheel presents mostly green and positive consequences as the result.

Explain the meaning of the equation Y = f (x) as it applies to process improvement. In this equation, what is the Y, and what are the x's?

This discusses how problems are followed and solved from left to right ( chronologically). In relation to process improvement, the problem is started towards the right which is the closest to the client and the issue the client is having. This way we can focus on the problem on the client and improve the issues they are having. Y= Lagging and f(x)=Leading. We also need to do data collection to help us through this process so that we know the cause and effect in order to meet the client's needs (use fishbone model for this). This way we can ensure that we are going through the proper process to improve the product and meet the customer's needs.

How is it possible to reduce the cycle time of a process by 50% and yet only reduce its cost by 10%?

This is because the cycle time of a process and the cost are not linked in a one to one ratio. This is due to the fact that even though you are reducing the time it takes to do something, a lot of the time that you may be reducing is actually non value added time. This makes it so the actual time may not have any monetary value to it but you are still technically reducing the time it takes which is beneficial, but is more valuable to the customer than it might be to the company.

Provide 3 other examples in various industries where this standardization technique is or could be applied to improve outcomes.

Three various other industries where the concept of pathways and protocols could be applied to improve outcomes are: the auto industry, legal service industry, and the oil and gas extraction industry. The auto industry could benefit from the standardization technique because cars are now incredibly common for people to use, and standardizing the industry can maximize optimal use of automobiles. These various industries would benefit from a standardization technique due to the precipitously changing environment in our world today. Oil and gas extraction is also a target industry, because the way each country manages their oil is different, and there are units within each country that have different methods that vary in ethical value. Standardization can help with competition more than it may hurt, especially since those that succeed in these industries are usually the best competitors.

If this is why transformation efforts fail, discuss what makes them successful.

Transformation and change within an organization requires a shift in the culture, the team, and the processes. If any of these elements are lacking, the transformation may not take place and it may go in the wrong direction. What makes transformation efforts successful is a combination of things. An important thing to remember is to celebrate the successes and continue to move towards improvement, rather than seeing a success as a victory and then slowing down progress. Before starting a transformation process, it is imperative to establish how important this change is, the potential it has, and how the outcome is better or more efficient than the current state of the organization. It is important to present this information so the individuals who are working together to make a transformation are energized and understand why they should be in support of this transformation. With that said, all parties involved should be aware that the task at hand is not an easy one. The provision of support will help facilitate the transformational process and continue to invigorate the team.

In general, variability can arise from two sources: the process and the measurement system. Discuss how variability in the measurement system can cloud decision making about what is actually occurring in the process.

Variability in the measurement process can cause confusion in many areas. This variability makes it hard to understand what the standards for your product are. One individual's requirements can differ greatly from other individuals, this makes it difficult and confusing for producers to know what their product should include. In your measurement you want to measure the customer's ultimate requirement, so you can reflect that in your process. However, if your measurements vary they can display misleading information that can harm what steps you include in your process, and overall it can make it so the product is created not meeting the actual requirements of the customers.

Explain how visual controls can provide standardization in processes. Give examples of visual controls in your personal life and school or work life.

Visual controls can provide standardization in processes by streamlining symbols, colors and shapes and giving them a clear meaning to anyone who comes into contact with it. Visual controls can be used with people from a wide variety of places, with different backgrounds, and in a wide range of generations. One example of a visual control in my school life is college ruled and wide ruled notebooks. The size of the notebook is something that we always were asked to pay attention to. Another example of a visual control is on walking and biking paths in Minneapolis and surrounding areas. The lines and colored signs indicate where people are allowed to walk, run, and bike.

Explain what is meant by "white-sheeting the data" and why it is important to do this before collecting the actual data.

White sheeting the data means thinking out the data ahead of time. White sheeting the data includes what the steps are to gather the data, and also figuring out how it is going to be presented, as well as the questions that the data might answer. White sheeting the data can also include the process of 'dummying up', or gathering data that can act as a model, so it can be more accurately determined which method of displaying the data would be most efficient and clear. This allows people the space to modify the data collection plan and methods if necessary.

Can a process for creativity also be efficient? Explain why.

Without a doubt, the process for creativity is not a clear cut process. Creativity involves the brainstorming of many ideas, and picking and choosing the ideas that can provide the most gain, including tangible and intangible gains. Efficiency in the creativity process directly correlates with an individual's ability to produce creativity, which varies from person to person. The level of variability can change in different circumstances. However, there are several factors that can enhance the processes for creativity, improving the efficiency. For example, strong ability to make use of time management, flexibility in project deadlines, and the ability to work under pressure.