8.1 Defining Measurement

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9 hours 3 minutes
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Hi, guys. Welcome to measure phase defining measurements. I'm Catherine Nick Iver, and today we're going to go over the importance of measurements and metrics in process improvement. So before we get started, Dr Harrington was one of our great management gurus. He told us that
measurement is the first step that leads to control and eventually improvement.
If you cannot measure something, you can't understand it. If you can't understand it, you can't control it. And if you can't control it, you can't improvement. Prove it. Dr. Harrington was one of the people who was inspirational and foundation over Dr Juran when we started talking about, um,
quality assurance and quality improvements.
All right, so when we talk about measurements, let's let's step back for a second and think about lean six Sigma as a whole. We think about those three things customer customer satisfaction, employee collaboration and data driven metrics. So measurement is an evaluation method. It is for us to say
that we're happy you're side measurement inherently
isn't positive or negative. We, as the analysts and we, as the users of the data a sign, a quality to it. This is good or this is bad against our expectations. But measurement
at a conceptual level is purely evaluation. It's important to know that measurement doesn't mean metric so and I'm not talking metric as in metric versus US measurements measurements.
Oftentimes, when you see organizations, they talk about metrics. These are
KP eyes are key performance indicators. This is how we know we, as an organization is, are doing well or working towards our goals. Because you measure something doesn't make it a metric, um, a metric can be a measurement, like when we start talking about that comparison against known values
time, money, What is your cycle time? How much does it cost for production? What are your revenue levels?
Those sorts of things. But it's important to note that these are not synonymous. And
just because you invest the time in measuring something doesn't need me, and that you need to re measure it in an ongoing manner or report against it in an ongoing manner. So when we talk about measurement being a comparison against the noon value while we're talking about his time, money, satisfaction, previous measurements.
But these are all things that have
a repeatable way of gathering. The information's a time we can use a stopwatch money. There is a standard for our dollar or whatever currency you use. Satisfaction. We get into it a little bit with voice of the customer. More
so when we talk about successful measures, what we want to conceptualize in our mind is that this is foundational. Remember those three pieces? It's important to create a baseline so that you know where you're starting from, remember? No positive. Negative. Just simply This is where we're starting at.
This is what we can do. This is what we can't do these air what our expectations are
for the outcome. When we start designing measures, we want them to be related to our project goals. I briefly mentioned this when we talk about our objective statement If your objective is a cycle time or how fast you get something done, you're going to want your measurement to be a time interval Eso related to the project goals
and very important in how the voice of the customers integrated into your lean six Sigma project. So we talked about things about
customer satisfaction scores. We talk about complaints we talk about, um
how do you know that your customers voice is being represented in your project. And how do you measure that? So when we say a number of complaints, we have an X number of complaints that we start with. This is our known value. Let's say 20 in a day because I don't run a good pizza place.
Um, and then we do our project and we decrease it by 25%. And we're down to 15 complaints in a day,
using some statistics to frame some expectations around that. So we know we have a baseline. Witches are known value that we're comparing against, and then where we compare for in the future, there are a couple of things to keep in mind. So your baseline is your unknown value. It's your starting point. But then you also have your units of measurement, which are
the dollars
the time
science customer satisfaction. Your units of measurement will be how you determinate either number of complains or customer satisfaction. Score Lakers scale those sorts of things.
But so when we talk about measurements and as we go through our measure phase, keep in mind that measurements aren't necessarily metrics, So a good way to think of this is they don't have a goal attached. So when we think about our revenue targets,
we have a goal attached. We want to measure our dollars to make sure that we're at where we want to be.
But if we're looking at our number of defects, we don't necessarily have a goal attached
yet. But we may in the future. So as we look at our process control plan because we have done this fantastic process improvement project and we do, we shift over to our process owner. There may be a metric associated with it. The measurement is how we compare against a known metric is
the assignment of value on that? Um
So when we think about measurements also, remember that measurements are simply a baseline starting point. There is no positive. There is no negative. It's processed position and status. All right, guys, thank you for understanding measurements. Our next module is going to be y equals F of X
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