Category: Concepts

Some companies struggle to operate within budget because they do not understand the difference between what is possible in theory and what’s possible given the constraints of their business. Knowing the how, when, and why about setting cost related targets helps gain that understanding and is crucial to knowing what systems are realistically capable of.

If you look at the dashboard of your car, you will see a display of the current real-time status of important metrics. You can do the same thing with your business metrics.

Understanding continuous data will give you an advantage that is critical to successful process analysis. This article will explain the crucial role of continuous data in process improvement.

Cost of poor quality, also known as COPQ, are the direct and indirect costs associated with the defects generated by a process. COPQ impacts the financial bottom line in both the short and long term, so it’s important to address quality errors in a timely manner.

What is performance in the workplace judged upon? What makes an exceptional worker? Being able to boil down the most important features is key to pinpointing the expectations of a worker’s performance. These key features are the critical elements. Overview: What is a critical element? A critical element can be defined as an aspect of […]

When you make improvements to your processes, that is not enough. It is important to put measures in place that ensure that the work that has been done can be sustained.In the DMAIC process, your problem is defined, measurements are taken, analysis occurs, and improvements are made. After all of this, comes the final control […]

Conformance is a term that refers to the degree to which a product, service, or system meets its specified requirements. It is the total of all expenses incurred by a company to meet a target quality level for a product or service.

Is quality free, as claimed by quality expert and author Philip Crosby? Or, is there a cost of quality (COQ) that your organization needs to understand and manage? 

Defects are products or services that fail to meet customer requirements. By understanding defects created, we can work to reduce or eliminate them and ensure customer satisfaction.

The general concept of developing relationships with customers is certainly not strange to the business world. However, leveraging tailored digital solutions to take this concept to the next level in practice is relatively new. Modern CRM leverages digital infrastructure and tools to improve how businesses interact with people. Overview: What is customer relationship management? CRM […]

An in-depth look at the Lean Six Sigma customer — who they are, why they’re important, and how to win lifelong loyalty.

When doing hypothesis testing, there is a risk of making two types of errors. One of them is the consumer’s risk, which is when the null hypothesis is rejected when it shouldn’t have been. 

If you stretch a rubber band and let it go, it will snap back to its original position. The same is true of your any process improvements you make. The control plan is intended to help you maintain the gains you have achieved. 

Having a continuous approach in your organization can be both positive and negative, depending on what it is in regard to. When it comes to improvement, being continuous is ideal. Striving for continuous improvement in your organization furthers the success of your company. Striving for continuity in other aspects, however, can be detrimental. Overview: What […]

Listening to and engaging with your customer gives a powerful and unique insight into what your products and services should deliver to be successful. By developing a number of Critical to Customer requirements, you can build a strong foundation for customer satisfaction and commercial success.

Does your organization have a centralized department or function that monitors and tracks the performance of your operations relative to your customers? If you do, let’s see what it might be doing. The term “Customer Operations Performance Center” is not a widely recognized or standardized term, so its exact meaning may vary depending on the […]

Good communication is one of the most important qualities to have if you want to succeed in business. For various reasons, this quality is often overlooked. None of us exist in a bubble. All of us find it necessary to communicate with others in our business lives at some point or another. Communicating well is […]

This is what I want! This is what I need! This is how I want it to perform! You need to embark upon a process to take your customers’ qualitative wants and needs and translate them into specific customer requirements. 

Organizations love to talk in terms of averages. They talk about average sales, average units produced, or the average time to complete an invoice. But, is that adequate? Let’s explore other measures of central tendency and answer that question.

Businesses need structure in order to operate properly. This need for structure extends into nearly all aspects of an organization, including who holds the decision rights. In your organization, it is necessary for the procedures behind how processes and projects are implemented to be clear and definitive. Choosing the appropriate owner of the decision rights […]

Often organizations do a root cause analysis after a problem has occurred. Is there something you can do as a preventive action prior to something happening. Let’s learn more about CAPA. Corrective and Preventive Action (CAPA) is a systematic approach used in various industries, including manufacturing, healthcare, and quality management, to identify and address the […]

No two snowflakes are alike, goes the old saying. Variation is everywhere. But, is some variation predictable and due to the variation in your process, while some is not? Common cause variation is a part of every process. Let’s learn more about it. 

“Business value added” refers to the actions the customer may not directly be requiring, but that are necessary for you to stay in business over time. There are safety, preventative, and legal requirements that necessitate these tasks.

See Cost of Non-Conformance.