Visual Six Sigma: Making Data Analysis Lean

5.8. Conclusion

This case study illustrates how Visual Six Sigma can be exploited beyond the traditional data-driven manufacturing and engineering areas. Almost any business involved in selling products or services generates data in its transactional activities, but such data are often used exclusively for accounting, rather than for improvement. In process terms, pricing and price management generally remain something of an art.

Pricing data is a very rich source of information about dynamics of the market and the relationship between suppliers and their customers. In our case study, using Visual Six Sigma reveals some dramatic insights. In response to these findings, a simple and pragmatic value analysis tool is developed to help sales representatives focus their price negotiations more effectively. In addition, new measurement tools are developed that enable the supplier to better align its price adjustments with shifts in market conditions.

Using Visual Six Sigma, the messages that were contained in Polymat's historical price change data revealed themselves as clear and unambiguous. These findings could be presented in ways that were not clouded in statistical language and that told a compelling story leading quickly to improvement opportunities. Although access to subject matter expertise was vital, Visual Six Sigma allowed Jane to make rapid progress with only the need for periodic consultations with other Polymat personnel.

These findings led to the development of simple ...