EPISODE B5.006 Improve Product and Service Quality by 1 Sigma

RESULTS RADIO..."Let's Grow Together"

Introduction
Hope everyone is looking forward to a great week. We have a few announcements to make about growth of the IBGR Network. 

First, we are doubling the number of new and returning visitors to the site. July was twice June’s numbers and we beat July’s numbers over the weekend.

Second, with the addition of Gambia on Sunday, IBGR is now heard by entrepreneurs in 100 countries. That is 51% of all the countries on the planet. 

Third, we have declared war on Covid19. That is not on the disease itself, just a worse variant of the flu. Our declaration is aimed at those politicians and bureaucrats that are making arbitrary, non-science based decisions on economic activity. People with no skin in the game, collecting checks from our taxes are deciding which business lives or dies. If you do your own research, a stark reality will become apparent - what is happening in your country is not based on science - it is based on power and control.

Check these articles out as reference points:

• Sweden Hits COVID-19 "Triple Whammy": No Lockdowns, Low Deaths & Minimal Economic Damage
• Lockdown Restrictions Are A Test To See How Much Tyranny Americans Will Accept
• THE TRUTH ABOUT COVID19 - DON'T LET THE BUREAUCRATS AND POLITICIANS GIVE YOU A LINE OF BULL.

Put all of this together and we are your advocates against the forces of statism and command economies. We understand entrepreneurs are a different breed that don’t live by the leave of others - why? Because everyone at and associated with the station are entrepreneurs. We are building a network of ideas, insights, and tools that will help you navigate the pandemic and beyond.

JOIN our Community and Let’s Grow Together!
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Show Objectives - The Why
Today's show will introduce the concepts around Statistical Process Control (SPC). This is a vital issue as the business develops from a get it done as you can to a professional operation. SPC is nothing more than how do you intend to measure performance and productivity? The bottom line is it doesn't need to be hard - just program a spreadsheet and make it work - most of the math needed is in the spreadsheet.

Key Issues - Owner/Manager Perspective: 

1. What are our current performance levels, the likelihood of mistake?
   1. Sigma 1 = 68% (320 defects per 1,000) - noncompetitive
   2. Sigma 2 = 95% (50 defects per 1,000) - noncompetitive
   3. Sigma 3 = 99.7% (3 defects per 1,000) - industry average
2. First Goal - everything to 2 Sigma
3. Move from Inspection to Assurance - how to measure at point of work (POW) to ensure it Right First Time Through (FTT).

What You Need to Know - The What

• ​What to Measure - Dock to Dock, FTT, TaKT, WIPI, OEE
  • EPISODE B3.002: PROCESSES UNDER CONTROL, FINALLY!
• How to Measure - Standard Deviation
• Creating Spreadsheets - using the data function

What You Need to Do​​ - The How

1. Convert output measures to distribution curves - % achieved vs standard (100%)
2. Measure the output of all core processes against the standard.
3. Any under 95% conduct root cause analysis (Ishikawa Diagram)
4. Create Work In Progress metrics to capture defects at origin.
5. Measure POW until 3 Sigma is achieved

Shows

• Previous: EPISODE B5.005 OPTIMIZE THE USE OF LABOR
• Next: Episode B5.007 Sell Now or Prepare for Reinvention - Provide Input on Co-Development Partners
  
  

written by eman