Review of the week: Understanding Variation, The key to managing chaos

As Black Belt, got to admit, that sometimes one tend to think that everything is statistics. That a statistical tool can reveal a relationship between a critical x and the output. That inertia of starting analyzing if a set of data is normal or not, if the cp or cpk is higher than 1.66 or if the gage R&R used to obtained that data is reliable.

Yes, of course, Green or Black Belts have a tendency of jumping right away and perform statistical analysis. This is exactly when this great book make sense. Understanding Variation, The key to managing chaos, isn`t a book about how to use tools to perform fancy analysis. Is about using the right tools to take decisions and to understand what`s going on on our processes. The book is more an eye opener about how to use the basic control charts to understand the variation that affects a process.

It is essential to understand that there are extraordinary events that happen and affect the performance of a process. It is important to note this, in order to decide whether or not to take action to maintain control over a process. This is a key rule to understand and remind when analysing data. The fact that a single point is out of control doesn't mean the process is completely out of control. When a point exhibits an unusual behaviour, we need to ask ourselves if there was an external agent that cause the process to behave this way. In this case, we need to examine this point alone, and not the whole process. The process may be well in control,  but this point may reflect external causes affecting the process. In this case tools to examine special cause variation may help; 8Ds. So, if one single point doesn´t always mean that we need to take action or doesn´t always mean that the process is performing bad, maybe a couple of points would do the trick right? Well, that`s another thing this book explains better. Sometimes, specially when we analyze results, most organizations tend to compare one single month vs the same month from last year, or if we want to analyze further we may add the previous month from this year in the equation. As it is displayed in the book, this isn´t enough either. Many companies today focus on the current month, if we´re lucky, in the current year. Sometimes 6 or 12 data points doesn´t offer the whole information. In other to correctly identify if a process has changed; improved or worsened. The book shows some examples on how, looking just a portion of data, might not provide enough information to take the right decisions; interpreting this data would lie to us. In some cases we need to go back 2 or even three years to clearly see why sometimes the process does achieve the targets and why some other cases do not. This is another key rule. If a process hasn´t been changed for better or worse it is impossible that alone would be able to always meet targets. In this sense, the book will give an specific observation: arbitrary targets are exactly that, arbitrary. And sometimes do not have something to do with the process itself. A great insight in this subject is given in the book.

When a process looks stable, without points behaving in weird ways, it is necessary to analyze the process as a whole. In this case, this is common cause variation. Under this scenario six sigma tools are useful. Either to reduce variation or to make a shift in the process. This is key, because, how many times a manager has requested explanations on a single point? how many times a manager has ignored the sings from a process requesting help? Understanding this two types of variation will help to any person who examines a process to distinguish when action is needed and when isn´t. This book is a great reminder of the basic statistical rules used in SPC to observe a process and how to correctly look at data to take the best decisions the process can tell. The book includes some study cases so the reader is able to understand and see clearly how the traditional method to analyze data reveals a reality completely different when using the right tool and applying the principles of variation.

So, no matter if you are related to SPC or 6 sigma methodologies, or if you just want to understand what`s going on on your process, this book will help you to understand what the process is telling you. In consequence will reveal the voice of the process and will help you to take the most appropriate decision.
Really a great, simple and powerful book for any manager to read.

Thank´s for reading. I`d love to read your thoughts. Please, don't be shy and leave a comment.

Having the right tools to succeed .

A year ago, I was making some improvements to a small laboratory where steel was tested for both, physical and mechanical properties. One young engineer told me, while we were changing the layout for each of our desks:

"You know, somebody told me once, that you are as good as the tools at your disposal".

I didn´t truly believe this back then, but a few months later and even now, I totally agree. It is true that to be successful in life and at work, you need to have the right tools at the right time. Not only tools, but also the right systems, the right thinking and the right people to perform.

When I was a quality Engineer working as Chassis VRT, one of my responsibilities was to check for vehicle´s alignment on a daily basis. I used to check SPC charts for each and everyone of the alignment characteristics. I used to spend like two hours everyday analyzing, identifying trends, making decisions wether or not make and adjustment on alignment pits. Used to check for CpK, special cause variation, common cause variation, and the usual stuff you should check when using SPC to understand what´s going on with the process, as you can learn if you read Understanding Variation: The key to managing chaos which is a great book that helps to really understand what data is telling you. Anyway, I´m not here to discuss how great this book is. Instead I want to reflect my thoughts on the tools to be really effective. So, back to cars alignment, even though it was kind of boring and it was really a routine, now looking back, it was pretty cool. Because the information was at my disposal anytime, real time. So if I was having a trouble with alignment and decided to make and adjustment, almost immediately could see the effect of that adjustment on my SPC chart. I used to ask to the SPC coordinator to increase the sample to validate if my decision was right or wrong. 

IMR Chart from Minitab. The ones that I used to analyze alignment
were almost identical to this one.

This approach of discipline and careful analysis lead to the cars under my responsibility to be number one within Ford´s lineup in Northamerica, regarding alignment. But this success isn´t entirely mine. Have to give credit to the company who had the right tools at the right time for me to perform. Without an SPC program would have been very difficult to understand what was happening on the floor. Without a system that would give me information on real time, would´t have been able to detect problems and correct quickly to protect the customer. Without the person, doing the audit, couldn't write on my resume that I lead that car line to be the best in NA for alignment. My message isn´t that you need a fancy software, spend millions on a system for you to be successful. But to recognize that if you want to perform, need the right tools at the right time. Ford used a software to gather data. But could it be a sheet of paper instead of the fancy software to record the data? Of course it could! Could it be that the operator doing alignment, performed the audit as well? Hell no! cycle time wouldn´t have allowed. Also, alignment audit needs to be really precise and  at that time, cycle time was 10 min. per vehicle. 

Many companies fail to recognize this simple statement, and embark in a journey to practice lean without a foundation to sustain and to get the best of it. Do not change the old managerial practices or just want to implement tools, without changing their minds. Some others want to adopt a 6 sigma approach, without SPC programs, without tools to help the practitioner to perform analysis in a quick manner. Or without a data base to simply extract information for analysis. 

Organizations need to stop thinking that simplicity means austerity. Some do not want to expend on tools that are necessary for the workers to perform. In my example regarding vehicle´s alignment, I felt it was my responsibility to perform and respond, since I had everything I needed to get results. For me not getting results under those circumstances, meant failure. That´s the kind of engagement and pride we could introduce in the life of workers. As Mark Graban explains so well on his blog, on the book The Good Jobs Strategy many successful organizations prove that investing on the right things will benefit the bottom line.

Have you ever felt like don`t have the tools you need to perform? How is that making you feel? If you do have the tools to perform, Do you feel compelled to success? Please join the discussion and share your thoughts.

Thanks for reading, will be in touch.