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View Full Version : Derivation of 'Entitlement' (achievable target) in Six sigma project?


U K Jain
25th April 2006, 02:12 AM
Dear Sirs,
I am doing a trainee six sigma black belt project. With the following data of the process, can any body suggest what should be the entitlement (achievable target)?

The base line production= 745 litres per hour
Short term best achieved= 1086 litres per hour
Entitlement=?
Regards!

-U K Jain

Miner
25th April 2006, 09:31 AM
The entitlement is the best that the line could theoretically achieve if it were running at 100% OEE (Overall Equipment Effectiveness (http://elsmar.com/Forums/showthread.php?t=14499)), that is, with no unplanned downtime, scrap, rework, and running at the designated rate of production.

Your 1086 number may be approaching this, but entitlement will be a theoretical calculation.

Heids
8th May 2006, 01:04 PM
A company I used to work for established project goals as 70% of the distance between your baseline and process entitlement (which we defined as the average of the best 3 consecutive data points operating under normal conditions while in statistical control). The theory was if your process ran there for 3 consecutive periods without modifications or improvements, it should be capable to run there consistently under optimal conditions once the factors influencing the outputs are identified and controlled. And 70% of that distance should therefore be a realistic and acheivable goal. Of course achieving entitlement was always the stretch goal, but in order to advocate success, the stated goal was always etablished at 70%.