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Class Twenty Two Notes

Class Twenty Two Notes - Page 1 of 10 Class Twenty Two...

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Page 1 of 10 January 26, 2009 (3:22pm) J:\SWT\HA4315\Class notes\Spring 2009 version\C_22_Spg 2009.wpd Reduce, reuse, restore, recycle , VOTE Class Twenty Two Agenda & Objectives HA 4315 I. Logistics and Objectives A. Data Skills: Understanding Current Processes Using the QI Process: Pareto principles and stratification B. Memory Jogger II , pp. 95-104, Pareto charts II. Data Skills: Understanding Current Processes Using the QI Process A. Introduction Knowledge about a process or situation increases through a sequential process of successive, small, simple, well-defined data collections designed to address variation exposed by preceding sets of data. Getting data one time and making a fix is not a CQI, TQM, or CI approach to improvement. People often are unaware of the data they could easily capture in their daily work. Consequently, they do not generate the data they really need for improvement. We shall use an example that starts with the typical data in the organization and then will move to other techniques. The example will incorporate these concepts into a process that uses existing data or simple data collection strategies . From an initially vague project definition, this process isolates and localizes major improvement opportunities. The example illustrates how simple analysis of an existing work situation can yield significant improvement through focused, simple, efficient data collection. The Pareto principle is a key component of thinking about which problems to address. B. The Pareto Principle In the 1920s, Juran noticed that when faced with an improvement opportunity, 80 percent of the observed variation was generally caused by only 20 percent of the process inputs. Juran called this phenomenon the Pareto principle, after a renaissance Italian economist who studied the distribution of wealth. QI uses this principle to its fullest advantage. When studying an improvement opportunity, doesn't it make sense to isolate and attack the 20 percent of the variation causing 80 percent of the problem? This gives the greatest return on investment of precious time. Juran calls the 20 percent the "vital few" and the others the "trivial many" or more recently, the "useful many." It should be emphasized that these problems are most assuredly not trivial to the people who must work in those situations. They are trivial only in terms of their current impact on the entire organization. As the more significant opportunities for improvement are solved, some of these "trivial" opportunities will either be addressed in the context of a larger problem or eventually become "vital.”
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Page 2 of 10 January 26, 2009 (3:22pm) J:\SWT\HA4315\Class notes\Spring 2009 version\C_22_Spg 2009.wpd Reduce, reuse, restore, recycle , VOTE The "vital few" are generally long-standing, perennial opportunities that have never been solved despite repeated efforts. Their root causes are deeply entrenched in the culture of interconnected processes of many departments, and they will require more formal and higher level guidance and participation to be addressed, including that of top management. Their solution processes will be lengthy and require patience and persistence. However, the
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