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Once this large crystal of silicon has been manufactured, it must be cut into slices to manufacture the solar cells. I like to think of this a bit like the way an egg is sliced to make sandwiches by an egg slicer see the analogy in Figures 10-9 and 10-10.

Revision: Revised by: Outputs - Output 1 - Output 2 - Output 3 Customers - Requirement 1 - Requirement 2 - Requirement 3

Consolidate strip mill to single site FOR AGAINST Union opposition Competitive pressure Restructuring cost Budgetary objectives Political pressure Ease of administration Increased transportation cost No cheaper alternative Opportunity cost Improved efficiency

The measure phase is to identify correct measures, establish a baseline, and eliminate trivial variables (Gupta et al., 2007). The following tools are important to understand:

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What extent of improvement is appropriate to aim for When a business sets a goal to improve performance by 10 percent per year, employees are likely to complain that no one in the company feels any improvement. In fact, they may even feel that the company s performance has degraded. The reason is that the tangible results of about one-half of any improvement in performance may be consumed by cost-of-living adjustments. Another portion of the improvement may be attributed to measurement errors (whether intentional or not), and the remaining improvement may be attributed to real improvement in a few areas. As a result, most employees see no improvement, practically speaking. More significantly, the resulting improvement correlates insignificantly with improvement in profitability. Suppose a company s CEO sets a goal to improve business performance by 10 percent. The management team is requested to submit a plan that will achieve the expected results. Naturally, they look for areas that can easily be tweaked. The 10 percent improvement is quickly realized, and everyone celebrates the success. There s a better way to plan, however. Suppose that the CEO asserts that an aggressive rate of improvement is critical to maximize profitability and assigns challenging rate-of-improvement goals to all management team members. Practically everyone has the same goal: to improve at the specified rate. Typically,

Basic statistics Statistical thinking Cost of quality Measurement system analysis Critical parameters Critical to quality

time, crystals should start to grow pull the skewer up slowly, bit by bit, so that the growing crystal is still in contact with the sugar solution. This is just like the way that silicon is grown. The silicon is drawn up slowly from a bath of molten hot silicon (which is analogous to our saturated sugar solution). This is shown in Figure 10-8.

There are two types of statistics, descriptive and inferential. The descriptive statistics summarize the historical data (Gupta et al., 2007). Basic descriptive statistical analysis consists of the mean, median, mode, range, variance, and standard deviation (Gupta et al., 2007). Also measuring the cost of quality is critical because high variations and inconsistencies can cause high cost and waste valuable resources. Inferential statistics is based on analysis of the sample to infer performance of the process (Gupta et al., 2007). It is generally concerned with the source of the data and seeks to make generalizations beyond the data at hand. Inferential statistics can include regression analysis and hypothesis testing among many others.

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