samirsaci / lss-chi-squared

Lean Six Sigma with Python — Chi-Squared Test

Lean Six Sigma with Python — Chi-Squared Test 👷

How to replace Minitab with Python to perform a Chi-Squared Test to explain a shortage of drivers impacting your transportation network

Lean Six Sigma (LSS) is a method based on a stepwise approach to process improvements.This approach usually follows 5 steps (Define, Measure, Analyze, Improve and Control) for improving existing process problems with unknown causes.

Youtube Video

Find in the link below a short animated explained video to understand the concept behind this solution

Article

In this Article, we will explore how Python can replace Minitab (Software widely used by LSS experts) in the Analysis step to test hypotheses and understand what could improve the performance metrics of a specific process.

Scenario

You are the Inbound Transportation Manager of a small factory in the United States. Your transportation network is simple, you have two routes:

• Route 1: coming from your northern regional hub (with difficult road conditions and busy traffic)
• Route 2: coming from your southern regional hub (with no traffic and a beautiful modern road)

Transportation is managed by an external service provider with a fleet of three trucks (with three different drivers: D1, D2, D3).

Problem

When an order is allocated to the northern regional hub the lead time to get the request accepted is 35% higher than the southern hub.

Question

Are there drivers avoiding as much as possible to be allocated to the north route?

Experiment

We have analyzed the shipments of the last 18 months to build a sample of 269 records.

Code

This repository code you will find all the code used to explain the concepts presented in the article.

About me 🤓

Senior Supply Chain Engineer with an international experience working on Logistics and Transportation operations.
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