Tag Archives: Process

Lean Six Sigma and Chaos

Posted on by
Reply

One of the fundamental flaws with process improvement programs is the assumption that all aspects of a business environment are determinant and predictable to a high degree of precision. Certainly some business systems and functions fall into this highly predictable category and fit well into the various quality programs we have seen.
What happens, though, when you try to apply Six Sigma tools to a process or function that is indeterminate? The answer is that incorrect conclusions can be drawn. To be clear, predictions that have a higher precision than the evaluated process or function is capable of, need to be viewed with suspicion. Examples of indeterminate systems are the weather and search engine impressions that a keyword receives on a periodic basis.
The internet, like the weather is an indeterminate system. With indeterminate systems, macro (low precision) predictions can be made reliability (hot in summer, cold in winter) because at the macro level indeterminate systems demonstrate repeatable cyclic behavior. At the micro level, though, this repeatable cyclic behavior becomes less consistent and less reliable. For more on this read the work of Edward Lorenz regarding chaos and weather prediction.
Getting back to the internet, economic systems are indeterminate. This does not mean that Six Sigma tools cannot be applied to indeterminate systems like internet search engine key word impressions. It is instead a matter of using the right tool for the job. In indeterminate systems, since you cannot control or adequately predict all of the variables in the system being worked on, a Six Sigma project team will focus on less precise factors (macro). This means statistical inferences that have much higher standard deviation parameters and may even defy statistical evaluation altogether.
With indeterminate systems, the Six Sigma team will be trying to reduce uncertainties surrounding the system and determine the boundaries associated with these uncertainties. We have to realize that we cannot increase the precision of an indeterminate system beyond the system’s natural state. We can, though, control the precision of how we react to the system’s behavior.
With internet impressions, you may not be able to predict search engine behavior very far into the future, but you can calibrate how you will act to take advantage of what you see. For example, you can build a website that is robust enough to deal with the uncertainty of web searches on the internet. You can also take more frequent measurements of key word impressions and use pay per click tools to react to the impression “terrain”.
Basically, what I am saying is that with determinate systems, Six Sigma teams can work directly on the process to reduce variation and improve performance. With indeterminate systems, the team must work with the uncertainty that exists outside the process to improve performance.

Case Study: Automotive Control Module Repair and Remanufacturing

Posted on by
Reply

When customers think of automotive control modules, what comes to mind are engine control modules, transmission control modules, and body control modules. Some people are genuinely surprised to find there can be as many as 80-120 different control modules functioning in their vehicle, controlling everything from power windows to drive train components. As everyone in the industry knows, as fuel economy, emissions and safety become more important to shoppers; control modules will become even more important to a smooth operating automobile.
At the same time, the ability of repair shops to diagnose and repair control module problems is being challenged. Many shops do not have the proper scan tools needed to see deeply enough into the vehicle’s control module network to determine what is really happening there. In these cases, the shop is forced to diagnose the vehicle with circumstantial information instead of with the actual observation of vehicle network data. This is equivalent to looking at a “boot print” of the problem instead of actually seeing the boot. This drives questions such as:
• How do I know that the module is really bad?
• If I replace the module, will the vehicle start working properly?
• What can cause the module to go bad?
This is both a challenge and an opportunity for repair shops and the replacement parts industry. Two aspects of customer satisfaction affect every business: satisfaction with the product and satisfaction with the service surrounding it. This is the premise underlying the processes we sat up for Automotive Electronic Solutions (AES) to use in its business of repairing and remanufacturing automotive control modules.
In the case of control modules, the “service surrounding the product” challenge is to understand that the shop first needs a quality diagnosis, before the subject of quality replacement parts can take place. For AES, this is a matter of determining what level of service best fits the customer’s problem. Specifically, AES will ask about trouble codes and symptoms to determine the best solution for the customer. If the trouble codes and symptoms do not clarify the level of service needed, the customer can ship the module to us for internal component evaluation. This evaluation will determine what, if anything, is wrong with the module, as well as determining whether it can be fixed. This is a low cost, overnight service. From there AES can return the module to them with diagnostic notes, repair their original module, or remanufacture a replacement module for them. This reduces a repair shop’s risk in servicing their customer and allows them to control the cost of the service.
From a product standpoint, when a remanufactured module is needed, AES works with recyclers around the country to obtain core modules to work with. These are then remanufactured. The recyclers are an integral player in this process because they know the history of the source vehicle, which avoids potential problems resulting from incorrect part numbers and security configuration. To leverage recycler domain knowledge and help recyclers become a quality supply chain player, AES developed Core Module Configuration and Quality Inspection criteria. As a result, both the recycler and AES operate with fewer mistakes. Recyclers benefit from the ability to sell control modules in a low risk venue.
When AES delivers a repaired or replacement part to the customer, service quality is in play again. Along with the part, the customer receives instructions as to what other parts might need to be replaced in order to protect the repaired or replacement module, and installation requirements to protect their investment in the part. This includes what on-board programming may be needed after installation. Getting out in front of potential problems is the best way to reduce or eliminate customer dissatisfaction issues.
ASE also hired ASE Certified Master Techs to help customers with the details of module replacement and diagnosis. The end result is that when a customer service issue arises, AES has the internal domain knowledge to deal with it. This is another aspect of the service surrounding the product.
Lastly, AES defined what they don’t do. This allows AES to work within the limits of proven service abilities. It also helped to define what R&D was needed to expand the scope of their service.
The main intellectual take away for AES is this. Whether you are a recycler, repair facility, or a remanufacturer of automotive control modules, you operate in a process based industry. To become truly customer focused, your customer must be a part of the process. From a sales perspective, customers want to know that you care about their success as much as you do your own. This is true whether the customer is an end user, shop or warehouse distributor.

Requirements vs Delighters

Posted on by
4

Requirements are those service or product characteristics that the customer requires in order to satisfy their needs. When the business fails to meet these requirements, the customer will not be satisfied. The result is a lost business opportunity. The analysis of these requirements will eventually lead us to customer critical to quality (CTQ) issues.

On the other hand, delighters are those aspects of a product or service that delight the customer when present, but are not required. For example, hotel customers did not expect a free continental breakfast in the past. By providing customers with this service, some hotel chains were able to gain a competitive advantage.

This practice leads to customer expectation. Once exposed to a delighter, the customer can, and usually does, come to require these delighters. In other words, the delighter becomes a requirement. In addition, as is typical with customer satisfaction issues, requirements tend to escalate. For example, where customers were once delighted with a free continental breakfast selection of donuts, juice and coffee, some are now expecting prepared foods.

Finally, customer requirements tend to increase in number and complexity. Once a requirement gets set in a customer’s mind, they do not typically to go away. For this reason, businesses need to plan the rollout of delighters and measure their impact. There is no rest for the business that wishes to gain and keep market share.

Voice of the Customer

Posted on by
4

Beyond the analysis of processes, a successful improvement initiative becomes a business philosophy that changes it’s culture and value system. By listening to the voice of the customer, a business can find exactly what the customer wants and design the products and services that meet their expectations. Expectations are not limited to quality. Customers also have expectations of functionality, appearance, safety, etc. You have to listen carefully to your customers to know what they are looking for. When these expectations are known, the business can partner with their customers, creating a closed loop in the relationship. A business accomplishes this by aligning its values and strategies with the expectations of its customers.