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Edwards Deming Example:Operational Definition Poor:Cycle time for applications. Good:Collect data from all applications received by fax from January 3,1999 to January 17,1999. The response time will be determined by the date and time of the fax received as shown on the faxed application to the time the approval or rejection letter is faxed to the applicant as shown on the fax log. Version Nov 2023 22 Page GB material S I G M A Six Sigma and Operational Definitions ? Operational definitions enable a team to fully agree on how a particular characteristic of a process is to be measured. It is the process characteristic that is critical to the satisfaction of the customer. ? Therefore, when developing an operational definition,it is important for the team to fully understand and agree that the definition reflects exactly what information the team is attempting to gather on the process. ? Clarity is even more important when developing and selecting the measures that will be used to determine the sigma performance of a process. ? Operational definitions may determine if a team is to count all the defects on an invoice(required to calculate defects per million opportunities) or the total number of defective invoices(any invoice with any defect) or the type of defects encountered on an invoice (to eliminate the most mon defects first). Each of these cases may require a very different approach for gathering the data. Operational definitions help ensure that the team does it right the first time when it es to data collection. Version Nov 2023 23 Page GB material S I G M A Exercise: Operational Definition ? Objective ? To practice developing an operational definition.(20 minutes) ? Instructions ? one of the first three examples below and one from your process. ? an operational definition for each that will be clear to all who need to understand it . ? to share the definitions with the class. ? Departures. A consumer anization wants to rate airlines on how successful they are at meeting the departure schedule as put forward by airports. But before the anization can start it needs an operational definition of when the airplane departs. ? B. Customer Complaints Reduction. A fast food restaurant wants to reduce the number of plaints it receives. It needs an operational definition of plaints before it can start to measure it. ? Staff. A customer service anization wants to be able to assess how knowledgeable its staff is at meeting the customer needs. It needs an operational definition to help establish a baseline. ? Process. Version Nov 2023 24 Page GB material S I G M A Measurement Plan Questions to Answer What precise data will be collected? Performance measurement? Causes of process deficiencies? Do we analyze all relevant data or a sample? What is the right sample size? What is the right frequency? What will be the sample selection method? What tools are necessary? What formats will be used? What logs will be kept? Do we need a puter? ? Step 2: Measurement Plan ? Determining current process performance usually requires the collection of data. When developing a measurement plan ensure that: ? The data collected is meaningful ? The data collected is valid ? All relevant data is collected concurrently What logistical issues are relevant? Who will collect data? Where is the data located? When will it be collected? What additional assistance is required? What you want to do with the data? Used daily, weekly,etc. Identify trends in the process data Identify deficiencies in the process Demonstrate current process performance Identify variation is a process Identify a cause and effect relationship Version Nov 2023 25 Page GB material S I G M A Develop a Measurement Plan Types of Data ? Before data collections starts, classify the data into different types:continuous or is important because it will: ? Provide a choice of data display and analysis tools ? Dictate sample size calculation ? Provide performance or cause information ? Determine the appropriate control chart to use ? Determine the appropriate method for calculation of 6s Continuous Measured on a continuum Objective ?Time ?Money ?Weight ?Length Subjective ?Satisfaction ?Agreement ?Extent ?Type of error Discrete Count or categories Objective ?Count defects ? approved ? of errors ?Type of document Subjective ?Yes / No ?Categories ?Service performance rating(good,poor) ?Satisfaction ?Agreement Version Nov 2023 26 Page GB material S I G M A Two Basics Types of Data ? Continuous or variable datameasured on a continuum or scale. Usually continuous measures can be divided into parts and still make sense. For example: ? Time can be divided into days, hours, minutes, or seconds (cycle time) ? Money can logically be divided or specified in increments (sales, costs, losses) ? Satisfaction if measured with a continuous scale,( dissatisfied, dissatisfied, neither satisfied nor dissatisfied, satisfied, very satisfied)can logically be calculated and expressed in an average level of satisfaction on a scale. ? Discrete, categorical or attribute datameasured by example: ? Defects(yes/no,approved/disapproved,pass/fail,met customer requirement/did not meet customer requirement) ? Categories(days of the weed, locations, type of customer, type of product, risklow/medium/high) ? Satisfaction(poor/fair/good/excellent or dissatisfied/satisfied) Version Nov 2023 27 Page GB material S I G M A Cause Data Performance Data ? Descriptive ? Focus on Results ? Helps establish a baseline ? Measures performance of a process ? Should be collected first Cause Data ? Focuses on why process performs the way it does ? Helps identify potential r