Multiple Authors
By: Darin Marcuz, Laron Colbert

This article describes a novel approach to calculating the financial aspect of overall equipment effectiveness (OEE), with the result referred to as $EE (as in monetary units). By using $EE, a management team readily can “SEE” their operation in financial terms. Employees are then better able to focus on underperforming operations to improve the bottom line.

Eston Martz’s picture

By: Eston Martz

When we take pictures with a digital camera or smartphone, what the device really does is capture information in the form of binary code. At the most basic level, our precious photos are really just a bunch of 1s and 0s, but if we were to look at them that way, they'd be pretty unexciting.

In its raw state, all that information the camera records is worthless. The 1s and 0s need to be converted into pictures before we can actually see what we’ve photographed.

Fred Schenkelberg’s picture

By: Fred Schenkelberg

Just, please, plot the data if you have gathered some time-to-failure data, or you have the breakdown dates for a piece of equipment. Any data really. It could be your review of your car maintenance records and notes and dates of repairs. You may have some data from field returns. You have a group of numbers and you need to make some sense of it. Just, please, plot the data.

Gorur N. Sridhar’s picture

By: Gorur N. Sridhar

Quality and Six Sigma are often considered as links in a chain. For example, when quality is poor, many times the immediate response is, “Let’s improve it using Six Sigma.” But does Six Sigma, or any other program for that matter, really improve quality? Or, are they simply mirrors to let us know where we are, what we’re doing, and where we’re heading?

John Flaig’s picture

By: John Flaig

I have discussed the economics of project management numerous times in presentations all over the country, and based on the response to my message, I have to conclude that many people just don’t get it.

Brian Maskell’s picture

By: Brian Maskell

T here are three ways in which a standard costing system is typically used in a manufacturing company:

1. Performance measurement
2. Decision making
3. Inventory valuation

From an accounting perspective, performance measurement and decision making are part of a company’s management accounting system, which is the internal information used by management to measure, manage, control operations, and also to make business decisions.

Fred Schenkelberg’s picture

By: Fred Schenkelberg

Control charts provide an ongoing statistical test to determine if a recent reading or set of readings represents convincing evidence that a process has changed from an established stable average. The test also checks sample-to-sample variation to determine if the variation is within the established stable range. A stable process is predictable, and a control chart provides the evidence that a process is stable—or not.

Brian Maskell’s picture

By: Brian Maskell

It is vitally important for lean people to know nothing when working on improvement. This sounds like a crazy idea, but it is another 100-percent turnaround from traditional management thinking.

To do this, it’s necessary to do three things:
• Understand how lean thinkers go about radically improving their business
• Engage everybody to make improvement
• Increase and capture knowledge

Rip Stauffer’s picture

By: Rip Stauffer

Recently, in one of the many online discussion groups about quality, Six Sigma, and lean, this question was posed: “Can X-bar R and X-bar S be used interchangeably based on samples size (n) if the subgroup size is greater than one and less than eight?” Answers varied, of course.

Eston Martz’s picture

By: Eston Martz


Last week I attended the American Society for Quality’s World Conference on Quality and Improvement in Nashville, TN. The ASQ conference is a great opportunity to see how quality professionals are tackling problems in every industry, from beverage distribution to banking services.

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