Six-Sigma methodology is a popular methodology for Quality
improvement and works well with data-driven decision making. While the efficacy
of Six-Sigma approach is under question these days, there is no doubt that some
of the concepts are relevant not just to the Manufacturing shop floor but also
to some of our problems in Life (Please read on…I am not trying to spin a yarn
here…but remember Six-sigma works with Data). One such approach in Six-Sigma
for incremental improvement is called DMAIC….Define -à Measure-à Analyze-à Improve-à Control.
Define : What is the Defect? …
Measure :
Measure the Data that will define the Defect…
Analyze :
Analyze the data that you measured…
Improve :
Identify some improvement measures based on your analysis…
Control :
Implement measures on a sustained basis to see the benefits…
Let us apply this to the problem of monthly Fiscal deficit
at a personal level ( in plain words…your
spending is greater than your earning)
Define :
the defect is Deficit=Earning-Spending
Measure :Measure your Earning and more
importantly the daily spending (under different categories such as
Grocery,EMI,Local commute etc…,)…you need
to do this atleast for 3 -5 months to get sufficient data
Analyze :
Once you have the data, you need to analyze the data to determine the causes…the
rule is 80% of effect is by 20 % causes…In this case, 80% of spending is on 20%
of items
Improve :
Focus on the 20% of items that cause the most of spending and figure out a way
to spend lower the next month (I know this is easier said than done !!!)
Control :
You need to sustain your data collection & the effervescent mental thing
called “Discipline” …to atleast see
through to a stage where Deficit = 0….
Finally, you may all wonder this is Common sense at work and
what is that I am talking some weird thing called Six-sigma ….I completely
agree …Six-Sigma is just another wrapper to remind the human beings of 21st
Century about using Common sense often...
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"Six sigma being a wrapper to remind us to use common sense"