This blog series explores the foundation for and a basic overview of a Six Sigma deployment and implementation process within an organization.
Efficiency and Effectiveness 2
Efficiency and Effectiveness Part 2
In the last blog post we were discussing George Eckes premise that “efficiency and effectiveness” are, or should be, among the highest Six Sigma improvement targets.
Questions 1, 2, 3, are combined to determine your currently level of inefficiency. Question 4 then determines your “effectiveness” regarding how well you delight your customers.
Time, cost, labor, and value are among the resources consumed during these efficiency activities, as we move along on our road to becoming more effective in delighting our customers.
Effectiveness, we established, is the level of performance you are currently at in meeting your customer’s needs and requirements.
According to Eches and associates studies, pretty much mirroring similar studies, the average number rating for efficiency and effectiveness for company’s across the board are as follows;
These reported numbers, of course, are averages and are suggested as “grades” on average for companies and not on individuals. You can pretty much check out your own individual scores by answering honestly the four questions used in the preceding blog post.
You have heard me say many times that bad systems and broken processes defeat good people. Efficiency involves all the activities we put forth in order to gain and measure our Effectiveness.
Go back to the previous blog post and take stock of questions 1, 2, and 3. Recall that executing tasks that lend to our efficiency consumes resources such as time, labor, cost and value.
Six Sigma measures variation – our customers feel variation in our products and services – they do not feel averages. Here is an example to illustrate the point.
For five days in a row we go to a fast food place to gather our lunch. Day 1 we sit in line 8 minutes. Day 2 we are in line 14 minutes. Day three we are in line 9 minutes. Day four we wait in line only 2 minutes for our order. Day five we wait 28 minutes.
The average wait time in line for our order is 12 minutes. However, we never experiences that 12 minute wait. The range of our wait time was 2 minutes to 28 minutes.
We did however feel the variation. We have no real idea what our wait time may be on our next visit. Can we depend on this business to meet our needs and requirements?
Equate this example back to your professional lives. If these were your times for delivering part or whole products and services to your customers (internal and/or external), could they depend on you to meet their needs and requirements?
Are you too producing 50% inefficiency and 7 out of 10 effectiveness scores? Do you work in systems and processes that have such scores?
You, and your company, have a choice to either continue to be a part of the problem, blaming all misfortunes on bad systems and processes and feeling as though you’re are powerless to do anything about it.
Or, you can elect to be a part of the solution and make change happen in order to delight our customers and grow your business towards world class performance levels.
Does that mean all in your business must be at a 6 sigma level? George gives the example of airline industry being rated at above a 6 sigma level.
That score is for flight safety. One only need to check the baggage claim area to realize the airline industry (for the most part) lives with a 2.5 sigma level for handling your baggage.
Thanks for following my blog. Hope you are able to glean things that are of value add to you on both professional and personal levels.
Blessings to all,
Charles Wilson, Ph.D.
Aka Lakota (TreQna)
Aka LakotaEagle (Twitter)
Please visit TreQna University to discover many freebies and training offers.
http://www.treqnauniversity.org
In the last blog post we were discussing George Eckes premise that “efficiency and effectiveness” are, or should be, among the highest Six Sigma improvement targets.
Questions 1, 2, 3, are combined to determine your currently level of inefficiency. Question 4 then determines your “effectiveness” regarding how well you delight your customers.
Time, cost, labor, and value are among the resources consumed during these efficiency activities, as we move along on our road to becoming more effective in delighting our customers.
Effectiveness, we established, is the level of performance you are currently at in meeting your customer’s needs and requirements.
According to Eches and associates studies, pretty much mirroring similar studies, the average number rating for efficiency and effectiveness for company’s across the board are as follows;
- 50% inefficiency our of 100%
- 7 out of possible 10 on effectiveness (in school we learned this to be 70% or a grade of “C”.
These reported numbers, of course, are averages and are suggested as “grades” on average for companies and not on individuals. You can pretty much check out your own individual scores by answering honestly the four questions used in the preceding blog post.
You have heard me say many times that bad systems and broken processes defeat good people. Efficiency involves all the activities we put forth in order to gain and measure our Effectiveness.
Go back to the previous blog post and take stock of questions 1, 2, and 3. Recall that executing tasks that lend to our efficiency consumes resources such as time, labor, cost and value.
Six Sigma measures variation – our customers feel variation in our products and services – they do not feel averages. Here is an example to illustrate the point.
For five days in a row we go to a fast food place to gather our lunch. Day 1 we sit in line 8 minutes. Day 2 we are in line 14 minutes. Day three we are in line 9 minutes. Day four we wait in line only 2 minutes for our order. Day five we wait 28 minutes.
The average wait time in line for our order is 12 minutes. However, we never experiences that 12 minute wait. The range of our wait time was 2 minutes to 28 minutes.
We did however feel the variation. We have no real idea what our wait time may be on our next visit. Can we depend on this business to meet our needs and requirements?
Equate this example back to your professional lives. If these were your times for delivering part or whole products and services to your customers (internal and/or external), could they depend on you to meet their needs and requirements?
Are you too producing 50% inefficiency and 7 out of 10 effectiveness scores? Do you work in systems and processes that have such scores?
You, and your company, have a choice to either continue to be a part of the problem, blaming all misfortunes on bad systems and processes and feeling as though you’re are powerless to do anything about it.
Or, you can elect to be a part of the solution and make change happen in order to delight our customers and grow your business towards world class performance levels.
Does that mean all in your business must be at a 6 sigma level? George gives the example of airline industry being rated at above a 6 sigma level.
That score is for flight safety. One only need to check the baggage claim area to realize the airline industry (for the most part) lives with a 2.5 sigma level for handling your baggage.
Thanks for following my blog. Hope you are able to glean things that are of value add to you on both professional and personal levels.
Blessings to all,
Charles Wilson, Ph.D.
Aka Lakota (TreQna)
Aka LakotaEagle (Twitter)
Please visit TreQna University to discover many freebies and training offers.
http://www.treqnauniversity.org
Total Comments 4
Comments
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Why don't the study scores not surprise me in the least? What is surprising (in a bad way) is how companies might have a inflated sense of self worth and react with much horror when the presented with mediocre scores on studies like these.
I for one, like to tell process owners to never rest on laurels and always expect some expression of customer dissatisfaction around the corner and use that to relentlessly improve. It is almost like you can see the shadow of a burglar around the corner, so do all you can to nullify any danger.
Also the fast food counter example brings me back to something I tell people at my company - the customer NEVER experiences averages. One experiences individual data points.Posted 07-23-10 at 10:24 by netneanderthal 
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Netneanderthal,
I just love real life examples. It seems people can really identify with real life much better than the stuffy stat examples we typically use.
You are wise beyond your years. I am forever preaching we are to do all we do with "excellence". Self discovery tells me that our personal excellence is only good for the present moment in time (days, weeks, months -- but short lived none the less).
We have a choice to live in that current exellence without building onto or adding on anything new that signifies growth. You will do pretty well for a short while -- but then you begin to decline -- as compared to the competition around you -- it will be as a large rock falling from a ledge -- fast and downard.
We were already excellent and have changed nothing. Why would our excellence suddenly fail us? The sad news is that the many others around you, those competing with you on many levels, it is they who have advanced their personal excellence to surpass that of your own.
Back in the day I was a competition pistol shooter (out to 200 meters with open sights and without reats) and I held many titles.
I got comfortable and begin to slack off on my focus -- not building on my personal excellence. At a Texas State Title competition in the early 1980's, I was dead certain I would walk away with top honors -- didn't even bother with practice the day before the match.
I was the first shooter up, with three top contenders in the field that would follow me later in the competition. I turned in a very respectable score, happy with that achievement, I was off to sight see in that part of Texas. I didn't even stick around to watch the rest of the match -- to see how my competitiors were doing.
Each of those fellows turned in better scores than my best -- the last beating my score by one point. I was left holding fourth place.
The lesson to me was that your personal excellence is only good for the present moment in time. Withour continuous improvements, education or knowdege gains, and adding "be able to do" skills sets to your "excellence" -- you will slip off the thrown.
Isn't it the same for our businesses? Excellence must be sought out daily. Thanks for following this blog and for your educational comments. All is very much appreciated.
Blessings,
LakotaPosted 07-27-10 at 21:41 by Lakota
Updated 07-27-10 at 21:52 by Lakota -
thanks.............
Posted 07-29-10 at 04:09 by frostedfire
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frostedfire,
You are most welcome. Join in anytime you feel moved or have comments you feel need to be made addressing the topics at hand. I am very happy you are following the blog postings.
Blessings new friend,
LakotaPosted 07-29-10 at 20:51 by Lakota
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