Intro: Welcome to the E6S-Methods podcast with Jacob and Aaron, your source for expert training, coaching, consulting, and leadership in Lean, Six Sigma, and continuous improvement methods. In this episode number 64, we introduce the concepts of stable and capable processes, and what they mean “In the Eye of the Cash-holder.” (That’s your customer.) Here we go.

****In the Eye of the Cash-holder***

Objection 1: In spec is good enough. Variation doesn't matter.

Counter 1: Any variation from target results in depleted function of your customer. Although customer specs are wide, customers often have to account for supplier variation in some other way, and end up releasing lower quality goods into the market. Variation is evil according to taguchi, not just to customers, but to society as a whole.

Objection 2: Cpk and other fancy jargon is on its way out.

Counter 2: Perhaps, but new jargon will surely take its place to describe process variation relative to outcome expectations

Objection 3: This is old stuff. Everyone knows this. Why are we bothering still?

Counter 3: It is true that these topics are almost 100 years old. Yet still, many industries still have processes without specifications (business processes, etc), and the idea of measuring process variation is still new and novel.

Stable & Capable

I Stable

a. Displays Common Cause process variation: normal & random (typically). A.k.a. Show’s no variation patterns that are statistically unlikely

i. Shows no Special Cause variation

1. As statistically detected by Western Electric rules (more in future casts).

a. Example: one point beyond 3 sigma on either side of the mean. <3 in 1000 probability of occurrence by random chance alone. (special cause)

2. Or visually detected through graphical analysis, some intuition and expertise (not as rigorous, but better than nothing)

b. Detectable using control charts, AKA: process control charts, statistical process control charts (SPC), sometimes statistical quality control charts (SQC), depending on context.

i. Time ordered charts plotting process inputs or outputs, tracking history

ii. Uses history to judge the likelihood of future patterns in variation

Outro: Thanks for listening to episode 64 of the E6S-Methods Podcast. Stay tuned for episode number 65, where we continue our discussion of process stability and capability,“In the Eye of the Cash-holder” Part 1 B. If you would like to be a guest on podcast, contact us through our website or tweet us @e6sindustries. Join our discussions on LinkedIn. Subscribe to past and future episodes on iTunes or stream us live on-demand with Stitcher Radio. Leave a 5-star review while you’re there. Find outlines and graphics for all shows and more at www.E6S-Methods.com. “Journey Through Success”