November 2008 Vol.52


Welcome to The JURAN Report,
Juran Institute's monthly e-newsletter dedicated to supporting you in your efforts to improve quality and performance within your organization.


Juran Institute, Inc., www.juran.com, provides training and consulting services to help organizations worldwide achieve sustainable, breakthrough results. Founded in 1979 by Dr. Joseph M. Juran, a pioneer in the quality revolution, the Institute's expertise includes Six Sigma, Operational Excellence, Strategic Deployment, Benchmarking, and Lean.


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Juran News

Leading Scientifically

Adapted from the upcoming book The Scientific Leader, co-published by Matt Barney, PhD and Juran Institute’s Richard Chua, PhD


More than a century has passed since Frederick Winslow Taylor created “Scientific Management” methods to improve industrial efficiency.  Taylor was the earliest example of attempting to lead scientifically in order to improve the management of organizations.    Like all scientific models, Taylor’s had flaws.  He focused on a narrow, technical view of detailed work tasks at the expense of other important factors.  Today we know that business strategy, brands, relationships, skills, values, interests, aptitudes, attitudes, culture, climate, and organization designs matter in creating value. 

Even though Taylor’s approach over-emphasized technical components of production, he influenced many subsequent management movements.  For example, the Human Relations movement grew in direct opposition to Taylor’s omission of emotional and relationship aspects of work.  Nevertheless, he is a sort of Isaac Newton of applied science in the workplace.  Ultimately his narrow scope, and perhaps his personal style, were fatal flaws. Nevertheless, the book’s title salutes Taylor’s pioneering efforts. 

Today’s organizational sciences are Taylor’s great-grandchildren.  Professions such as Operations Research, Industrial/Systems Engineering, Computer Science, Finance, Organizational Behavior, and Industrial/Organizational Psychology use science, like Taylor, to design and improve organizations.  Practitioners have repackaged these methods and innovated throughout the years in a variety of ways, including T-Groups, Total Quality Management, Reengineering, Toyota’s Production System (“Lean”), and Motorola’s Six Sigma. 

Full Story...


For more information on the upcoming book, The Scientific Leader, contact RChua@juran.com.


Tools & Tactics

The Rasch Model - An Advanced Tool for Dealing with Human Variation

This is an introduction to Rasch modeling and analysis. It is an advanced statistical topic for social and human data rather than economic data. The Rasch Model is also a topic covered in The Scientific Leader mentioned above.

Suppose a research group wanted to know how well a workplace survey measured the work environment in several call centers.  They also wanted to be sure that the measure worked equally well in different sized call centers.  The researchers administered five questions and obtained responses from 123 call center professionals.  How might the researchers determine the quality of their measure? 

Problems like this confound many experts. Measures of every kind surround us every day.  We check the time and weather when we wake up in the morning, the news reports on the latest election polls, or popularity ratings of television shows.  We use measuring cups to prepare our food and take the temperature of our children when they show signs of illness.  We measure our speed as we drive to work and measure out a good size cup of coffee before we begin to work.  On some days we receive the latest test results from our doctor when we’ve checked on our health. 

In the workplace there are many measures that are captured, tracked, and reported.  Measures of productivity, product quality, customer satisfaction, and financial performance are all very familiar to us.  For many of these measures we never question the accuracy, but for others we may sometimes wonder.  Measures can be inaccurate and imprecise for many reasons.  The instrument being used to measure may not be calibrated properly, the person taking the measure might do it inaccurately, the sample being measured may not be representative of other samples, and for some types of measurement, the object being measured is difficult to observe (e.g., charm quarks in particle physics and cognitive states in psychology). 

Most Black Belts are trained on measurement systems analysis tools to deal with these types of problems. Unfortunately, these tools do not deal effectively or accurately with many types of human variation. There is however another tool, a more advanced tool, called the Rasch Model.

Rasch models are used for analyzing data from assessments to measure such human centric things as abilities, attitudes, and personality traits. For example, they may be used to estimate a student's reading ability from answers to questions on a reading assessment or an individual’s opinion relative to capital punishment from responses on a questionnaire.  Many high school competency exams and college entrance exams are based on the Rasch model.

Georg Rasch (1901-1980) was a mathematician and statistician at the University of Copenhagen.  Rasch first published his work about the models that bear his name in 1961.  The models were useful and popular in the study of psychometrics. Psychometrics is the psychological theory or technique of mental measurement.

Early applications in psychometrics, for example, concerned the probability of an individual’s response to a series of test questions given the individual’s subject knowledge and the difficulty of a given question.  This was referred to as an Item-Response Model using Item-Response Theory (IRT).  When the equation of the probability of an event is written in “logit” form it is referred to as a Rasch model.  Logit forms are a subject unto themselves but are used extensively in logistic regression.  For now, remember a “logit” is the logarithm of the odds ratio. The odds ratio, as every gambler knows, is the probability for an event occurring divided by the probability against the event.  Many of these models had parameters for the individual subject and the characteristic of interest concerning the individual.

Some of Rasch’s early work concerned analysis of dyslexic children, intelligence of military recruits and a new intelligence test.  Rasch modeling and analysis are also used in analysis of medical diagnosis choice in health care and customer preferences in marketing. 

Rasch analysis today is often used on data measurements using a Likert scale.  The Likert scale is commonly used on surveys to solicit the strength of opinion on a topic or evaluation of an instructor or training course on various factors related to satisfaction with the course, etc.

Likert scales are one-dimensional, linear rating scales.  You have used them many times on opinion surveys.  For example, a Likert scale for a questionnaire might be:

Rate all the questions in the survey on a “1” through “5” scale where

  1. = strongly disagree
  2. = disagree
  3. = neither agree nor disagree
  4. = agree
  5. = strongly agree

Since Rasch originally proposed his models, two other types of Rasch models have been developed.  They are the dichotomous and polytomous models. Dichotomous models have two choices such as “yes” or “no”; “0” or “1”.  Polytomous models are a generalization from dichotomous models where the choices for responses are more than two choices, e.g. multiple choice “a., b., c., d.”

Rasch himself did not like to write about his own work and theories in contrast to most academicians.  However, many other mathematicians and writers have filled in the gaps.  Rasch modeling and analysis is an advanced topic.  Once you have mastered basic descriptive statistics, inferential statistics, and hypothesis testing, consider looking into Rasch models; especially if you find yourself using or analyzing Likert scale data frequently.

For more information please contact Juran directly at (800) 338-7726 or info@juran.com.


Juran Services

Advanced Tools for Tough Process Problems

In the 1980’s a process yield of 80% was good enough to meet stakeholders’ needs. By 2000, 95% was good enough. Today, 6 sigma or 99.9999 is not good enough. What has changed? The need for better and better products and services that are more reliable than ever before. So how can your organization assure that processes are improving at a fast enough pace? By improving your diagnostic toolsets. Diagnosing today’s processes requires more advanced tools than were required in the 1980’s.

Many of our processes are impacted by human, technology, measurement, and time based variation. Some of the data has clear parameters that make it easy to analyze – some does not.

To be sure your organization has the right tools in your toolkit take a look at the list of advanced tools below. Contact Juran for more information on how we can help you learn these tools or incorporate them into your performance systems.

Measurement Systems Analysis and Psychometrics
Multidimensional Scaling
Latent Structure Analysis 
Response Surface Methods
Managing Sources of Variation in Employees
Multivariate SPC
Discrete Even Simulation Modeling
Design for Six Sigma
Regression Analysis
Measurement Systems Analysis
Reliability/Survival Analysis
Multivariate Analysis
Non-parametrics Analysis
Simulations and Distributions
Analysis of Variance ANOVA
Design of Experiments
Time Series and Forecasting

For more information on how your organization can take advantage of Advanced Tools for Tough Process Problems, please contact us directly at (800) 338-7726 or info@juran.com.

 
Juran Training and Workshops
Enroll in Juran's highly interactive and comprehensive public workshops. Our workshops prepare participants with the practical skills and in-depth knowledge they need to achieve tangible, rapid results on the job.

Register for any 2009 Workshop before December 31st
and receive 50% off any additional registrations!!!

2009 Lean Six Sigma Black Belt Public Workshop

20 Days; Four, 5-day sessions

Week 1: February 2-6
Week 2: March 2-6
Week 3: March 30-April 3
Week 4: April 27-May 1

American Management Association
Executive Conference Center

1170 Peachtree Street NE, Suite 300
Atlanta, GA 30309


$12,495

Includes training, certification, and consulting.
Required Minitab® software not included.

2009 Lean Six Sigma Green Belt Public Workshop

10 Days; Two, 5-day sessions

Week 1: February 2-6
Week 2: March 2-6

American Management Association
Executive Conference Center

1170 Peachtree Street NE, Suite 300
Atlanta, GA 30309


$6,495

Includes training, certification, and consulting.
Required Minitab® software not included.

2009 Lean Six Sigma Black Belt Upgrade Public Workshop

10 Days; Two, 5-day sessions

Week 1: March 30 - April 3
Week 2: April 27 - May 1

American Management Association
Executive Conference Center

1170 Peachtree Street NE, Suite 300
Atlanta, GA 30309

$6,495

Includes training, certification, and consulting support.
Required Minitab® software not included.

 

For more information please contact Juran directly at (800) 338-7726 or info@juran.com.

Juran Institute Inc.
555 Heritage Road, Suite 100
Southbury, CT 06488
 


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