Tuesday, October 30, 2007

OPERATIONAL DEFINITIONS


Operational Definitions apply to MANY things we encounter every day. For example, all the measurement systems we use (feet/inches, weight, temperature) are based on common definitions that we all know and accept. Sometimes these are called "standards."

Other times, our operational definitions are more vague. For example, when someone says a loan is "closed" they may mean papers have been sent, but not signed; another person may mean signed but not funded; a third person might mean funded but not recorded.

While here we are focused on operational definitions in the context of measurement, the concept applies equally well to "operationally defining" a customer requirement, a procedure, a regulation - or anything else that benefits from clear, unambiguous understanding.

Learning to pay attention to and clarify operational definitions can be a major side benefit of the Lean Six Sigma process.

* Y - Continuous data (Process start/stop and cycle time boundaries (such as the unit of measure (ex minutes), the unit (the thing you are measuring), will you include weekends, holidays, non-business hours?)

* Y - Discrete data (Define Success/Defect or other attribute values you will measure

* X - The subgroups values or X-factor groupings you will use on your project data collection

* Other unique terms that apply to your project that require clear operational definitions

What it is...

- A clear, precise description of the factor being measured

Why it's critical...

- So each individual "counts" things the same way- So we can plan how to measure effectively- To ensure common, consistent interpretation of results- So we can operate with a clear understanding and with fewer surprises

From General to Specific:

Step
1 - Translate what you want to know into something you can countStep
2 - Create an "air-tight" description of the item or characteristic to be countedStep
3 - Test your Operational Definition to make sure it's truly "air-tight"Note: Sometimes you'll need to do some "digging" up-front to arrive at good operational definitions. It's usually worth the effort!!

A quantified evaluation of characteristics and/or level of performance based on observable data

Examples include:

- Length of time (speed, age)- Size (length, height, weight)- Dollars (costs, sales revenue, profits)- Counts of characteristics or "attributes" (types of customer, property size, gender)- Counts of defects (number of errors, late checkouts, complaints)

Types of Data

- Continuous - Any variable measured on a continuum or scale that can be infinitely divided. Primary types include time, dollars, size, weight, temperature, speed. Always preferred over Discrete/ Cycle time; Cost or price; Length of call; Temperature of rooms

- Attribute Data: Discrete or Attribute - A count, proportion or percentage of a characteristic or category. Service process data is often discrete. Example include: Late delivery; Gender; Region/location; Room type

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