Process Excellence and Analytics

I have put together all the basic statistical analysis used in Measure and Analyze phase of DMAIC methodology of a Six Sigma project in a way that is succinct, convenient and can be used as a cheat sheet for quick reference Measure Phase – Continuous Data → Confidence Interval   (1-α)% CI = Sample mean ± Constant * Std error            CI = Xbar ± Zα/2 * (SD/√n)       Zα/2 = 1.96 at 95% CL from Z table       → Sample Size   n = (Zα/2 * SD / Δ)^2             Δ=precision       If n/N > 5%, then sample size to be modified by calculating n finite   n finite = n / (1+(n/N))            → Basic Statistics  Measures of central tendency: Mean, Median, Mode Measures of dispersion: Range, Va...

The simple answer to the title of my own blog is - Absolutely. The reason I am writing this piece is because a lot of people seem to be questioning the value and returns from Lean Management and Six Sigma in the BPM and shared services sphere. Some have even declared the two dead and bygone. I think I know the reason why. We are too distracted with Robot Process Automation. We are smitten by its great ROI and quick turnarounds (including me). These days we have also started to talk a lot about AI and Machine Learning even though in the business process management world, very few truly understand all that it entails. Many Black Belts and Master Black Belts are spending most of their time working as business analysts and program managers for RPA initiatives. Due to excessive focus on RPA and its benefits, many Process Improvement leaders are questioning the relevance of Lean and Six Sigma. For many, benefits in monetary terms is drying up from these two buckets. Comparing RP...

Objective – To summarize most common statistical analysis used in Six Sigma projects, general business statistics and analytics using R in a way that is succinct, convenient and can be used as a cheat sheet Prerequisites – Very basic operational knowledge of RStudio and Intermediate knowledge of statistics. Should be able to comprehend statistical outputs like p-value Why R? – Readers who are Six Sigma experts, might be guessing why should one use R when one is already comfortable with Minitab. Well, I have tried to list down some of the top reasons below • R is FREE!! Minitab costs about $1500. That should be a good enough reason. Many organizations will not approve the purchase of Minitab due to expense especially in client organizations or client environment. • Analysis on Minitab is limited to functions provided within the software suit whereas in R you have more than 3000 packages with endless functions and analysis. Possibilities on R are limitless. • Once you go throu...