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I’m reading a book called Working Backwards about Amazon. There is a chapter on metrics and it says to use the DMAIC process, which comes from six sigma, for de
by wheelinsupial 5y ago
I’m reading a book called Working Backwards about Amazon. There is a chapter on metrics and it says to use the DMAIC process, which comes from six sigma, for developing reporting and metrics. The authors provide an example about applying this to e-commerce at Amazon. They don’t seem to use control charts, but they are still trying to examine the metrics for common vs special cause of variation.
If you can relate inputs to the outputs of a process and you can get reliable data on the inputs, then you can use SPC in most areas. The costs to do so many not be worth it, however.
Which managerial processes do you think this doesn’t apply to?
- hef19898 5y agoAmazon, the Supply Chain part of it at least, has one of the best metrics systems I have ever seen in my life. Every metric is measuring something meaningful, each one is measuring a crucial process interface, each one is based on a simple calculation. Also most are measured in DPMO, looking at defects instead of things meeting expectations. The funny thing is, during my time metrics where presented, across all levels, in blunt, no chart, tables in a auto created PDF. And yet this is still light years ahead of everything else I saw, including fancy control towers.