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Showing posts with the label Variation

Random Variation Vs Trends

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Understanding variation is key to interpret the value stream behavior.  Not all variation is the same. Variation These are some factors which may add variation to the process of cooking a turkey.  Every process has variation. Some causes of variation may be identified and acted upon. We can use two metrics for variation which complement each other: Manual Dice Throwing This simple exercise can help to experience process variation and understand the difference between a process change and inherent process variation. This understanding is key on management decisions to avoid both overreaction and lack of reaction. To run the exercise with actual dice print the form: Exercise: You will need a printed form and 4 dice for each team Throw 4 dice and add the outcomes Record the result in the Run Chart Repeat 50 times Join the dots in the Run Chart with a line Build the Histogram by counting the total number of dots on each group of 3 values Run this Exercise with a Simulator Downloa...

Value Stream Data Analysis with Excel

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  After we have identified what needs to be improved in our value stream we want to look for the root cause of problems. Due to the existence of variation we will need statistical data analysis. Microsoft Excel provides effective data analysis tools we can effectively use to do this.  The steps for value stream improvement are: Map it as it is really happening today in Gemba with a Value Stream Map . Collect process data in the line. To understand the value stream dynamic behavior we will need statistically significant data to enable simulation   Check for stability with Statistical Process Control Know to what extent it is able to meet the customer requirements with Process Capability Perform additional data analysis to get to the root cause Now we will continue our value stream data analysis both for variables and attribute data. Hypothesis Testing A comparison statement is composed of two hypothesis: Null hypothesis             ...