Derivation of 'Entitlement' (achievable target) in Six sigma project?
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!
The entitlement is the best that the line could theoretically achieve if it were running at 100% OEE (Overall Equipment Effectiveness), 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.
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"A fool can learn from his own experiences; the wise learn from the experience of others." - Democritus, 460-370 B.C.
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%.