Risk analysis software tutorial I: crystal ball for Six Sigma tutorial

ABSTRACT

In an increasingly competitive market, businesses are turning to new practices like Six Sigma, a structured methodology for accelerated process improvement, to help reduce costs and increase efficiency. Monte Carlo simulation can help Six Sigma practitioners understand the variation inherent in a process or product, and in turn, can be used to identify and test potential improvements. The benefits of understanding and controlling the sources of variability include increased productivity, reduced waste, and sales driven through improved customer satisfaction. This tutorial uses Crystal Ball® Professional Edition, a suite of easy-to-use Microsoft Excel add-in software, to demonstrate how stochastic simulation and optimization can be used in a Six Sigma analysis of a technical support call center.

REFERENCES

• 1: Anderson, D. R., Sweeney, D. J., and T. A. Williams. 2003. An Introduction to Management Science, Quantitative Approaches to Decision Making, 10th Edition. Mason, OH: South-Western.
• 2: Averill M. Law , W. David Kelton, Simulation Modeling and Analysis, McGraw-Hill Higher Education, 1997
• 3: Pyzdek, T. 2003. The Six Sigma Handbook. New York: McGraw Hill, Inc.