In: Statistics and Probability
Provide a rationale as to why the three (3) aforementioned concepts or skills are important to someone in the field of business statistics.
1. Common Cause vs Special Cause Variation
2. SIPOC Model
3. Basic Improvement & Problem Solving Frameworks
1) When dealing with process variation, you’ll need to learn to recognize the two general types of it, and the ways they impact the operation of your business. In most cases, some level of variance to a process is inevitable: the question is whether the factors that cause this variation are controlled and predicted, and if you can account for that variation in your output projections.
*Common Cause Variation*
Common cause variation is variation resulting from factors that may or may not be known, but the final impact they have on your output is predictable and controllable, and you would usually know to expect some variation in specific areas when looking at your final reports. As we said above, some level of variation is inevitable for most types of processes, and this is usually the kind you want to have if you want to be sure that you’re in control of the current situation.
Note that in some cases, common cause variation can still be quite high, and this might cause issues in your production. Take steps to reduce it if you are able to identify the root causes, but don’t stress too much if you can’t get to the bottom of the situation.
*Special Cause Variation*
On the other hand, special cause variation occurs when something out of the ordinary happens in a process. This might be a one-time occurrence, or it can develop into a repeating effect, in which case it might eventually be categorized as common cause variation depending on the circumstances. It’s important to understand that sometimes you will simply not be able to avoid special cause variation, either because the nature of a process is prone to it, or because of external factors in your environment that are beyond your control.
When you’ve identified special cause variation though, it’s important to take prompt steps to deal with it. It may not be such a problematic factor right now, but if you leave it unattended for a long time, this might be a real problem that can bring down some parts of your operations. There are some tools that can help you figure out where some issues are coming from, but you may need to come up with some solutions of your own in some cases, depending on the complexity of the situation.
_Identifying Both with the Appropriate Tools_
This brings us back to the most important point – you need to be aware of what tools are available in your area of work for dealing with problems like that, and know how to apply them to your current situation in order to figure out where different types of variation are coming from, and develop an adequate solution. Special cause variation is typically easier to uncover as it will deviate from the norm more strongly, but there might be some exceptions. On the other hand, when dealing with common cause variation, you might have access to more historic data that can give you a better idea of what’s going on with the help of some statistical analysis. 2)
SIPOC Model*
Cause and Effect diagram
The categorization under People include:
Inadequate Staffing
Inadequate Skills
Lack of Experience
Lack of Process knowledge
The categorization of Measurement include
Collection consistency
CTP’s not measured
The categorization under mother nature include:
Day of the week
Week of the month
Month of the year
Holiday season
The categorization under Materials include:
Lack of Documentation
Lack of Knowledge Base
Lack of Escalation Matrix
The Categorization under Machine include:
Server Downtime
Workstation Downtime
PROCESS MAPPING, SIPOC, VALUE STREAM MAP
Process Definition Measurements of process inputs and outputs can be used to optimize the process being measured. Process inputs may be raw materials, human resources, or services. All inputs have some quantifiable measurement, including human effort and skill level. Process input requirements should be stated so that key measures of input quality can be controlled. Measurements within the process can also be used as effective controls. Once process capabilities are known, output measures can be used to monitor if the process has remained in control. When considering the entire organizational feedback system, complex interrelationships are likely to exist. This is where planned experimentation and designing for six sigma comes into play. Planned experimentation deals with isolating the effects of several different, independent variables on a process. Designing for six sigma includes eliminating potential sources of error.
Process Definition - SIPOC
A key concept in six sigma methodology is the SIPOC high-level process map in which SIPOC stands for suppliers, inputs, process, outputs, and customers.
*Improvement Basics*
basic concepts:
1) Establish a culture of quality in your practice.
Your practice’s organization, processes, and procedures should support and be integrated with your Improvement efforts. The culture of a practice—attitudes, behaviors, and actions—reflect how passionately the practice team embraces quality.
2)Determine and prioritize potential areas for improvement.
You will need to identify and understand the ways in which your
practice could improve. Examine your patient population (e.g., to
identify barriers to care, frequently diagnosed chronic conditions,
or groups of high-risk patients) and your practice operations
(e.g., to identify management issues such as low morale, long
patient wait times, or poor communication).
3) Collect and analyze data.
Data collection and analysis lie at the heart of quality
improvement. Your data will help you understand how well your
systems work, identify potential areas for improvement, set
measurable goals, and monitor the effectiveness of change. It’s
important to collect baseline data before you begin a Improvement
project, commit to regular data collection, carefully analyze your
results throughout the project, and make decisions based on your
analysis.
Communicate your results.
4) Quality improvement efforts should be transparent to your staff, physicians, and patients. Include the entire practice team and patients when planning and implementating QI projects, and communicate your project needs, priorities, actions, and results to everyone (patients included). When a project is successful, celebrate and acknowledge that success.
5) Commit to ongoing evaluation.
Quality improvement is an ongoing process. A high-functioning
practice will strive to continually improve performance, revisit
the effectiveness of interventions, and regularly solicit patient
and staff feedback.
Spread your successes. Share lessons learned with others to support
wide-scale, rapid improvement that benefits all patients and the
health care industry as a whole.