Monte Carlo Simulation: An Underutilized Six Sigma Tool

Lean Six Sigma projects are performed in many areas of business. There are a few that require an estimation of future performance when there is no chance to test or evaluate the new process. On February 26, Rick Haynes of SmarterSolutions  will share his expertise in a free live webcast that documents a case where a reliability testing effort provided a reliability model that needed to be extrapolated in order to estimate the total impact on warrantee costs.

The reliability model was developed through a logistic design of experiments. The resulting model was coded into an Excel spreadsheet and then modeled using @RISK to answer questions of future failure percentages. The results were used as inputs to focus on the need for proactive actions by the supplier in order to maintain a good customer experience. In the end, no additional actions were taken by the supplier and business continued with a manageable liability rather than with an unknown future risk

Thank you for your feedback on Six Sigma’s Thirst for Information blog posting. Working with industry experts to develop the webinar series and armed with voice of the customer that you supplied me, we’ve been able to ensure topics are of interest you. So please keep your thoughts coming.

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