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Intro: Welcome to the E6S-Methods Lean Six Sigma Performance podcast with Jacob and Aaron, your weekly dose of tips and tricks to achieve excellent performance in your business and career. Join us as we explore deeper into the practical worlds of Lean, Six Sigma, Project Management and Design Thinking. 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.) If you're just tuning in for the first time, find all our back episodes on our podcast table of contents at e6s-methods.com. If you like this episode, be sure to click the "like" link in the show notes. It's easy. Just tap our logo, click and you're done. Tap-click-done! Here we go. http://bit.ly/E6S-064RB Leave a Review! http://bit.ly/E6S-iTunes

****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. Don't forget to click "like" or "dislike" for this episode in the show notes. Tap-click-done! If you have a question, comment or advice, leave a note in the comments section or contact us directly. Feel free to email me "Aaron," aaron@e6s-methods.com, or on our website, we reply to all messages. If you heard something you like, then share us with a friend or leave a review. Didn't like what you heard? Join our LinkedIn Group, and tell us why. Don't forget you can find notes and graphics for all shows and more at www.E6S-Methods.com. "Journey Through Success. If you're not climbing up, you're falling down." Leave a Review! http://bit.ly/E6S-iTunes

Like / Dislike **We'd Appreciate Your Opinion**