Sunday, November 29, 2009

SIX SIGMA CONSULTING

Article No. 1

Title:
SIX SIGMA CONSULTING

Section:
Six Sigma

Category:


Meta description:
Six Sigma Consulting is the act of providing consultancy in the field of Six Sigma Quality Management System. Companies today, like to differentiate themselves from their run of the mill contemporaries and this prompts them to obtain this quality certification. Another reason for companies embracing this concept is the cost reduction that it leads to, in the company’s designs, processes, functions and services. Six Sigma Management system is a disciplined, fact based approach to managing a company’s businesses and its processes.

Meta data:
Six sigma, six sigma consulting, cost reduction,

Intro text:
Six Sigma Consulting is the act of providing consultancy in the field of Six Sigma Quality Management System. Companies today, like to differentiate themselves from their run of the mill contemporaries and this prompts them to take up this quality certification. Another reason for companies embracing this concept is the cost reduction that it leads to in the company’s designs, processes, functions and services. Six-Sigma Management system is a disciplined, fact based approach to managing a company’s businesses and its processes

The basic improvement methodology of six-sigma comprises of the following steps:

Define tells us to define the current products/services/systems, so that we can

Measure the current performance of these products/services against customer expectations. So that one can

Analyze the root cause of any defects that may arise in the product/service, and one can

Improve the same so that one can

Control the quality of the product/service. This is also called the DMAIC methodology.

We also have the DFSS methodology. This methodology comprises of the following stages, namely:

Design

Measure

Analyze

Develop

Verify.

The DFSS methodology speaks about redesigning the processes, products/services, to rid them of the defects. It would not be useful if one just replaces the old processes where improvement is required.

Main text:
Six sigma consulting DMAIC methodology can be illustrated with an example from the construction industry. In the construction industry, invariably, concrete is used as a primary construction material. Either the concrete is produced at site or it may be from a Ready Mix Concrete Plant. There is an attempt made to explain the first six-sigma methodology as applied to the construction industry.

Defining the current process is nothing but laying down the process in which concrete is produced at site, using machine-mixing methodology. This concrete will be said to be of good quality only if it can be measured against the set benchmark of 30% strength gain at the end of 3 days after casting. Here we are measuring the actual strength of the concrete produced at site

with the benchmark of 30% strength gain at the end of 3 days. In case of more than 5% of the samples of concrete taken, deviate from the benchmark then the concrete is said to be of inferior quality. We do this by taking cubes of the concrete produced in the mixer We analyze the reasons for the variation from the benchmark. In addition, the standard deviation of the actual value of strength from the benchmark value is calculated. If this standard deviation or variation as we call it, is having a large absolute value then the concrete is to be of bad quality. A large variation will lead one to improve on the quality of machine mixed concrete produced. In this way, we are controlling the quality of concrete produced.

Here the customer expectation is that the quality of concrete that is produced match with the values of strength gain given in the IS codes for quality construction. Our endeavor is to follow the six-sigma methodology to accomplish it. The above process goes on until we reach our goal of producing good quality concrete. Here the problem is producing good quality concrete. The process is as elaborated above. We measure how many cubes of concrete meet the criteria laid down in the IS code for good quality construction. This is an iterative process until we obtain concrete of good quality, at optimum cost and in the optimum time.

There are three groups of people involved in the above process of ensuring quality concrete. They are the stakeholders, who are the end users of the apartments built by the builders. The builders are the champions of six-sigma and the people who are directly involved with implementing six-sigma are the black belts and the green belts.

The Champions promote awareness and execution of six-sigma within the various lines of business and/or functions. They identify potential six-sigma projects to be executed by the green belts and the black belts. The Champions also support the Green Belts and Black Belts. The Champions also participate in 2-3 days of workshop training.

The Black Belts use six-sigma methodologies and tools to execute business improvement projects. They are dedicated full time to the cause of six-sigma. The Black Belts serve as six-sigma knowledge leaders within the business units. They undergo 5 weeks of training over 5-10 months.

The Green Belts use the DMAIC methodology and basic tools to execute improvements within their existing job functions. They further bring the knowledge of six-sigma concepts and tools to their respective job functions.

The other people involved in this whole procedure are the Subject Matter experts, who in our construction industry are the various consultants who lay down the standards which should be met by the product(concrete in this case). The Subject Matter experts provide specific process knowledge to the six-sigma teams, and adhoc members of the project teams.

Finally, we have the Financial Controllers, who ensure the validity and reliability of the financial figures used by the six-sigma project teams, and assist in the developments of financial components of initial business case and final cost-benefit analysis. In our case of concrete manufacturing, they assess the cost of producing good quality concrete vis-à-vis the cost benefits enjoyed by the company in producing good concrete.





===XX===

project management review

PROJECT MANAGEMENT-A SYSTEMS APPROACH TO PLANNING, SCHEDULING, AND CONTROLLING (HARDCOVER)

BY HAROLD KERZNER

Book Review:

Project Management is a vast subject and it requires both practical and conceptual study. It covers the basic principles of management like planning, allocation of resources, scheduling, directing, monitoring, assessing, remedying any snags, and finally closing up.

The above book is a comprehensive narrative of the intricacies involved in the above functions of project management. It starts with describing the meaning of project management, giving definitions of the various terms involved in it, difference between product and project management, the various tools used for successful execution of projects. It also looks as the evolution of project management right from the year 1960 to the present day. At the end of each chapter are tips for preparing for the PMP certification exam.

It also looks into the attributes of a good project manager and talks about the other project participants. It emphasizes the importance of the project manager as a catalyst in the successful completion of a project within budgeted cost and time. There is a chapter devoted to managing mission critical projects. Also included is a chapter on time management and stress management during the currency of a project.

This is the tenth edition of this book on the subject and has the following extra features:
§ New sections on scope changes leading to changes in contract documents and the related cost enhancements
§ Ways in which the various parties to the project can exit from the project and avoid the liabilities conferred on them by virtue of the contract document.
§ Management of virtual teams in the project.
§ Twenty-five case studies applying the concepts elaborated in the book.
§ A new case covering the Iridium project covering all the important aspects of project management.

To cap all the above there are:
§ Four hundred discussion questions, which test your knowledge and grasp of the subject.
§ It has more than 125 multiple-choice questions, which test the knowledge gained from the book.

It is an improvement on the ninth edition of the book. This edition was more for the graduate student just out of school and was more academic in style, which was used, more to clarify concepts. The ninth edition had a more PowerPoint style of presentation. This is done away with in this edition of the book.

All in all this is one of the better books on project management available in the market and written by an equally knowledgeable author.

Wednesday, November 18, 2009

discriminant analysis

Text in Blue is the explanation not the part of the article



Article No. 1

Title:
DISCRIMINANT ANALYSIS

Section:
Discriminant Analysis

Category:


Meta description:
Discriminant Analysis is a technique of classification of objects and persons into groups, whose common characteristics the object or thing possesses. It can also help in assigning objects or people to existing groups. This is done based on the information available with regard to the characteristics or features of the object or person. . In other words, this is a regression based statistical technique used to ascertain which classification or group a sample of data belongs to, based on its distinct features.

Meta data:
Discriminant Analysis,

Intro text:
Discriminant Analysis is a technique of classification of objects and persons into groups, whose common characteristics the object or thing possesses. It can also help in assigning objects or people to existing groups. This is done based on the information available with regard to the characteristics or features of the object or person. In other words, this is a regression based statistical technique used to ascertain which classification or group a sample of data belongs to, based on its distinct features.

Main text:
Discriminant Analysis, as we have seen earlier, is a statistical technique to organize and optimize, the description of distinctive features of objects belonging to different groups or classes, and the assignment of objects or persons of unknown classes to existing groups. Consider the example of credit card customers. Here we may wish to distinguish between the good and the bad credit card customers. This differentiation is based on two variables, their credit history and payment status of existing credit card debt. An attempt, to study the correlation results of the good and bad customers with the other variables, namely credit history and status of credit card debt, and the interrelation of the two variables, is made. Descriptive discrimination focuses on finding a few dimensions combining the originally measured variables and those that separate the classes or collections as much as possible.

PROCEDURE OF DISCRIMINANT ANALYSIS:

Select a random sample from a group or class or objects or people. This sample is called as “training” or “learning” sample. Subject this training sample to discriminant analysis, to obtain a set of discriminant functions. The classification will be carried out based on these functions. These functions are then used by SPSS or SAS, so that, they would not be known to us. The information regarding the characteristics of this sample is stored in the dataset created by the program. The same procedure also allows a true validation of the classification functions using a file containing objects of known membership to be classified using only the information available on the classification functions and the variables developed with the “training” sample.

EXAMPLES OF DISCRIMINANT ANALYSIS:

Hereunder is an example of the application of this procedure in the construction industry. During a construction project, when a slab is cast at site, using mechanical means, it is a general practice to take concrete cubes and send them to the laboratory for strength testing. Based on the strength gain at various intervals, it is decided when to dismantle the shuttering. The benchmark for concrete to attain adequate strengths at regular intervals is as under:

3 days strength---------------------------------33%

7 days strength---------------------------------63%

21 days strength--------------------------------83%

28 days strength--------------------------------100%

An attempt is made to classify the cubes based on their strength gain. Here the discriminant function is the strength and the training sample is the sample of concrete taken at the time of casting of the slab. The slab is de-shuttered, only if the strength of cubes crosses the above value. Due to commercial considerations and shortage of time, slab is de-shuttered, as quickly as possible, thus shortening the slab cycle. Here two groups come to the fore, namely the group where adequate strength is got (group 1) after the designated time interval, post slab casting, and the other where the samples are not meeting the above strength requirements (group 2).

A graduate admissions committee may divide a set of alumni into two groups, namely those who have finished the program in five years and those that did not. Discriminant function analysis can be applied to ascertain successful completion of the graduate program based on the GRE scores and the undergraduate grade point average. Examination of the prediction model may provide insights into how each predictor individually and in combination, predicted completion or non-completion of a graduate program.

The Simplest case would be the prediction of dichotomous group membership based on a single variable. Consider a modification of the above example. The pass percentage, of a graduate course is to be decided depending upon the scores of candidates based only on the GRE verbal scores. Here there is only one variable, namely the GRE verbal score, and therefore it may be difficult to know how different variables interact with each other in prediction.

CONCLUSION:
We can thus say that discriminant analysis is a potent method of allocating an object or person to a group or community, based on certain known parameters, and also a way to classify freak samples in existing groups.