Category: Concepts

Would you and I agree what 50% cotton/50% polyester means if we saw a label on your shirt? Probably not. How about whether your order was delivered? Without good operational definitions, we would likely not agree on many things. Let’s see how we can overcome that gap.

An outlier in the context of statistics means a value in your data set is significantly different from the other values. This might be a good or bad thing depending on the situation.

If you have categorical or descriptive data that has a natural order, sequence, or preference, it would be defined as ordinal data. Since ordinal data is one of four common types of data, you should understand what it is and how you can use it.

When individuals take ownership, they are more likely to be invested in its success and to work tirelessly to ensure that it runs efficiently, meets its goals, and continuously improves over time. So how can this concept be used in process improvement? Lean Six Sigma is a business improvement methodology used to improve processes and […]

The null hypothesis, written as Ho is a subset of the larger topic of Hypothesis Testing. The null hypothesis is a statement about a specific condition of your data and allows you to draw important conclusions about that data.

Get a quick primer on Paynter charts, a graphical method for comparing data regarding sub-groups. We look at how Paynter charts compare to KPI data and Pareto charts as well as the benefits of creating and reviewing Paynter charts.

NORMSINV is an Excel function that provides the INVERSE of the cumulative standard normal distribution. Let’s learn how it works.

Companies love their batch flow processes. But, a one-piece flow might be a more efficient approach to producing your products. Let’s learn a bit more about one-piece flow.

If you have worked in customer service long enough, you have likely had that one co-worker that talks way too much to customers, making suggestions that end up creating more work for co-workers regardless of the initial needs of the client. Overview: What is the O’Brien Effect? The O’Brien Effect refers to the waste that […]

A paired t-test is a form of a two-sample t-test used in hypothesis testing. It is useful for answering questions about any significant differences for before and after comparisons. 

Running a business involves all kinds of expenses. Rent, materials, labor and just keeping the power on all take money, and these costs add up to your total operational expenditures.

Correlation is a statistical term of the relationship between two variables. You can have a negative correlation, positive correlation, or no correlation. Let’s see what a positive correlation is all about.

Complex processes increase the likelihood of error states occurring. Scrap, defects, unnecessary work in progress, and warranty are all expensive. We’ll show you the benefits of adopting the process failure mode and effects analysis approach for your business.

Widely recognized as one of the most prestigious certifications in the industry, PMP validates your knowledge and experience in project management, opening up new opportunities for career advancement and higher salaries. Overview: What is Project Management Professional (PMP) Project Management Professional (PMP) is a globally recognized professional certification that is granted by the Project Management […]

A master schedule is the plan that all your other production plans are based on, which is why it’s so important to get this one right.

Your customers want to know when they can expect completion of their orders. Little’s Law, or Process Lead Time (PLT), is a simple way to calculate how long an order will take to complete.

Having a reliable method to account for your inventory is vital for reporting your financials to stakeholders as well as having the appropriate information for your business taxes. There are three popular methods for this, and they are the FIFO, LIFO, and average cost methods. If you are running a business, you are looking for […]

A competitive and successful business needs to critically evaluate all the opportunities for improvement and deploy valuable resources strategically. By identifying low-hanging fruit, high-impact, low-effort activities can be addressed creating a solid foundation for continuous improvement.

Almost every product requires physical materials, even services or solutions that don’t include a final physical deliverable. Any type of resource, component or supply needed to produce a particular product is considered a material. Material requirements planning (MRP) is a method for gaining greater control over internal logistics and turning it to the company’s advantage. […]

Learn more about the lower specification limit — in other words, the lowest limit that a measurement or reading can reach and still be acceptable to the customer. We’ll look at the benefits of monitoring LSL as well as some best practices and frequently asked questions.

Management plays a critical role in the successful implementation of Lean Six Sigma (LSS) methodologies within organizations. It provides the foundation for driving process improvement, achieving operational excellence, and delivering superior customer value. In today’s competitive business landscape, organizations strive for efficiency, quality, and continuous improvement to stay ahead. In pursuit of these goals, Lean […]

Linearity is usually discussed in the context of Measurement System Analysis. It is a measure of the consistency of the bias of your measurement system.

Waste is one of the biggest setbacks that prevents companies from reaching their maximum potential. One of the categories of waste, as described by Talichi Ohno, is known as muri. Talichi Ohno developed a system for Toyota that focused on the continuous improvement of quality and the elimination of waste. The types of waste as […]

The time it takes to deliver on your deals makes or breaks your business. You need to do everything you can to speed up this process without sacrificing quality or safety.