Date post: | 08-Jun-2015 |
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Business |
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six sigma& BPM
One of the most powerful ways to improve business performance is combining business process management
(BPM) strategies with Six Sigma strategies. BPM strategies emphasise process improvements and automation to drive
performance, while Six Sigma uses statistical analysis to drive quality improvements.
BPM
Basics0 Set of tools and strategies for process
improvement0 Motorola, 1980’s: improve the quality of
products and services0 Systematic, rigorous routine0 Approaches business processes from a highly
analytical point of view0 Incorporates five levels of activity
Six Sigma0 Allows an organization to reduce the variability in its products and
services Reduce waste Increase efficiency Increase customer satisfaction Solve business problems through rigorous application of data collection
and analysis tools0 Five step progression (DMAIC)
Key to success of six sigma: methodology Uses information and statistical analysis to address the achievement of
operational goals. Some differences in the five steps depending on whether they are used to
improve an existing process or design a new process
0 Goal (always): standard metric of 99.9997% defect free performance
0 Graph of the normal distribution0 underlies statistical assumptions of 6 modelσ0 (sigma) marks distance on horizontal axis σ
between mean, µ, and curve's inflection point0 The greater this distance, the greater is the spread
of values encountered.
Basics (cont.)
Philosophy • Enterprise-wide embrace of defect reduction by making decisions based on hard data
and customer focus
Focus on the customer• Meet or exceed customer requirements/expectations
Metrics• Statistical focus to make process outcomes 99.9997% defect free• (3.4 defects per million opportunities)
Methodology• Structured approach to solving problems that uses specific tools and
process mapping to achieve the metric goal
Process based• Defects or errors introduced into products or services are based upon deficiencies in
the processes
Five step progression (DMAIC)
0 Define Project goals and boundaries Identify issues to be addressed to achieve the higher sigma level
0 Measure Gather information about the current situation Obtain baseline data on current process performance Identify problem areas
0 Analyse Identify the root cause(s) of quality problems Confirm those causes using the appropriate data analysis tools
0 Improve Implement solutions that address the problems (analyse) phase
0 Control Evaluate and monitor the results of the improve phase
Basically identify an area where there is a process problem, measure it, work out why there is a problem and then fix it.
0 Methodology to prioritise the projects and close the gapsReduces process variation
improves process capability
Addition to 6- σ methodology: emphasis on removing non-value added work
Combining BPM and Six Sigma
Strengths Weaknesses
BPM
Ability to automate processes and workflow Through modelling and examination of inputs, outputs and performance
Ability to analyse data associated with very difficult or multifaceted problems
Six Sigma
Rigorous approach to data collection and analysis.
Can identify opportunities for process improvement
Maximizing ability to institute necessary changes
Ability to monitor process improvements and ensure they are applied across the board
Their strengths complement each other Create a synergy
Entire operation with a focus on quality and performance
BPM complements Six Sigma by providing tools to automate process improvements and connect those improvements across the entire organisation
Six Sigma complements BPM by providing the statistical analysis needed to deal with complex problems
A powerful combination
Both BPM and 6- σ
Represent significant commitments on the part of a business
or organisation
Take time to implement thoroughly
Tremendous organisational change is often required
Most companies start with a single department or pilot project and expand their use over a multi-year period.
It is well worth the time and effort to generate the substantial business improvements that are typical with BPM and Six Sigma.