by Gustavo Sosa
DMAIC is an acronym that stands for Define, Measure, Analyse, Implement, and Control. This is the central concept in Six Sigma. It defines a virtuous cycle that generates gradual improvement.
If you want to change something, first you have to measure it. And if you want to measure something, first you have to define it.
Do you want to get in shape? Good. How you do it? What is your problem? Aerobic endurance, core strength? No, not interested? Are you fat? Ok, then how you measure “fat”? Body mass index? Ok. Can you change your height? No? Then you have to control weight.
So, for something as mundane as getting in shape we need to think it a little bit before finding out what to do. After a few questions we define the critical variable (weight) that has to be measured. It is not straight forward.
Had we defined fat as “flabbiness” instead of “high body mass index”, then we should be using some skin grab method to measure it, and the method to solve it would be lifting weights instead of dieting.
What do you want to do in your company? Make money? Ok, then you have two alternatives.
A) Increase sales
B) Cut costs.
Increasing sales in a grain elevator is difficult, if not impossible. You are limited, physically, by the space you have. In a mill it is much easier, but the thing is that we are dealing with commodities here.
For the consumer, a kilogramme of your flour is just like a kilogramme of your competitor. He will choose based on price. In order to increase sales, you have to decrease price (if it isn’t regulated) and the only way to do that is through margins or costs reductions. If you operate in a market economy, your margin is already minimum. Then the only option is B.
Read more HERE.
DMAIC is an acronym that stands for Define, Measure, Analyse, Implement, and Control. This is the central concept in Six Sigma. It defines a virtuous cycle that generates gradual improvement.
If you want to change something, first you have to measure it. And if you want to measure something, first you have to define it.
Do you want to get in shape? Good. How you do it? What is your problem? Aerobic endurance, core strength? No, not interested? Are you fat? Ok, then how you measure “fat”? Body mass index? Ok. Can you change your height? No? Then you have to control weight.
So, for something as mundane as getting in shape we need to think it a little bit before finding out what to do. After a few questions we define the critical variable (weight) that has to be measured. It is not straight forward.
Had we defined fat as “flabbiness” instead of “high body mass index”, then we should be using some skin grab method to measure it, and the method to solve it would be lifting weights instead of dieting.
What do you want to do in your company? Make money? Ok, then you have two alternatives.
A) Increase sales
B) Cut costs.
Increasing sales in a grain elevator is difficult, if not impossible. You are limited, physically, by the space you have. In a mill it is much easier, but the thing is that we are dealing with commodities here.
For the consumer, a kilogramme of your flour is just like a kilogramme of your competitor. He will choose based on price. In order to increase sales, you have to decrease price (if it isn’t regulated) and the only way to do that is through margins or costs reductions. If you operate in a market economy, your margin is already minimum. Then the only option is B.
Read more HERE.
The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine Milling and Grain
which is published by Perendale Publishers Limited.
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