Greenbelt Course and Poisson Distribution
Motorola claims savings of over $15 billion since the 1980s
American Express claims savings of over $1 billion annually from 2000-2003
Allied Signal’s operating margin went from single digits to high teens
GE’s operating margin went from low to high teens
HSBC dispute resolution went from 36 days to less than 3 days
HP (went from) 30% accuracy to 60% accuracy resulting in over $3million in cost savings
Extracted from George Eckes Villanova Greenbelt lecture
As a business owner/operator you want perfection, it is the only way to stay in business. Six Sigma provides greater insight on how to achieve perfection or near perfection and it shows you how to reach this level while at the same time reducing costs.
Six Sigma and Lean are tools to be utilized across all industries. Being a business owner Six Sigma and Lean courses have opened my eyes to wasteful practices I was unconciously involved in and helped me rethink how I conduct business.
Every small business owner should become a certified Villanova or ASQ Six Sigma Green Belt.
On to Poisson-
Having never before encountered this equation it caused me days and days of greif.
Math type wants to create a picture for every symbol so I am going to use M for Mu
M = np = the population mean
r = number of defectives
e = 2.71828 the base of natural logarithms
and finally ! = Factorial Example: (courtesy of Rob Northrop www.corporateveilpro.com Is your corporation protecting you?) If the typical number of failures in a day is 5, what is the probability that you will get 7 failures in a day?
P = 5^7 * e ^(-5) / 7! = .104 so the probability is 10.4%
The Poisson Distribution counts the distribution of defects when you are dealing with large sample sizes.
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Comments
Michael,
For all the complaining we all do about the airlines and their poor customer service, this puts in perspective that they are actually pretty unbelievable when it comes to the most important facet of their service. The fact that there wasn't a single airline accident in the US last year with the complexity of the operations and all the millions of flights is pretty remarkable.
We are fortunate that the pilots and flight crews actually have to be passengers along with us on the flight, and their life is on the line as well. That is the crucial difference in my opinion that forces excellent behavior without the opportunity to make excuses.
Rob
www.corporateveilpro.com
Is Your Corporation Protecting You?
Thanks. Michael, for the 'legend' of what each of the symbols means -- I find it difficult to understand the equation if I don't know the meanings of each. This is a very interesting formula. I'd never heard of Six Sigma until I saw your posts ... I have been reading up on it in my 'spare' time ... always good to know new things (especially useful, applicable ones for business)!
I agree with Rob -- it is amazing how few major incidents there are in the overall picture. Having taken many flying lessons, I was amazed (especially at the beginning) how many little things needed to be checked. It encouraged me to pay more attention with my vehicles as well (circle check). It is so important to do the little things correctly and regularly.
Sue Crutcher, Baby Steps to Success Expert
As for Six Sigma being useful for small business I agree it would be helpful. I am a confirmed statistical junkie and believe it or not, actually read the occasional math book for fun. As for the average small business owner, with all the competing responsibilities and demands of running a business, plus the fact that we are talking about doing math, I don't see there being any real adaptation of Six Sigma to the business.
Great post!
Steven Chambers
I love reading formulas because it is such an excellent VISUAL short hand. I'd heard of Six Sigma but didn't really know WHAT it was.
With your great communication skills and acumen, I am starting to comprehend it.
Keep it up!
All the best,
April Braswell
Internet Romance Coach, Online Dating Sites Coach
David Power
Andrew,
I have completed Villanova's Lean Six Sigma, Greenbelt Six Sigma, and am currently enrolled in Villanova's Black Belt Six Sigma program.
Great programs and very informative.
Michael Christian Neumann
Six Sigma and Lean Consulting
Steve,
Initially I was going to treat your enthusiasm as I would treat any with your enthusiasm... total lack of acknowledgement.
BUT
Since I view the Inner Circle as family I am going to blog today on the application of Six Sigma to small businesses.
If I was passing a potentially valuable tool then I would want it brought to my attention as well.
Michael Christian Neumann
Six Sigma and Lean Consulting
All the best,
Yann
Yann Vernier - Personal Coach UK