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| Creation of Effective Organizational Predictive Metrics that Lead to the 3 Rs of Business |
| Key Performance Indicators (KPI’s) are being used as financial and non-financial measures or metrics that are to help organizations define and evaluate their progress towards long-term goals. However, metrics that focus on performance to goals are subject to being changed over time as objectives/leaders change and are also dependent upon management opinions or intuition at some point in time. A system that resolves this issue applies at the enterprise level such statistical analytical and non-statistical tools as Lean, Six Sigma, and Theory of Constraints (TOC) with a blending of innovation. This system centers on first creating an effective long-lasting, value-chain, non-siloed measurement system that has predictive metrics. This system, when integrated with strategic planning and business improvement efforts, can help organizations move toward achievement of the 3 Rs of business; i.e., everyone doing the Right things, and doing them Right, at the Right time. |
| Forrest W. Breyfogle, III
| Publication: Smarter Solutions, Inc
| Published: 2009-07-01
| Type: Article |
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| IEE V3 Book Excerpt "A DOE Development test, Example 32.2" |
| Design of Experiments (DOE) can be used within a Design for Six Sigma (DFSS) Define-Measure-Analyze-Design-Verify (DMADV) roadmap in both the Design (for optimization) and Verify (for design testing) phases. In this example, which is taken from a book, the application of a DOE is illustrated for verification test of the product design robustness to customer environmental conditions and future product configurations. The described technique is useful for capturing no trouble found issues before products are shipped. |
| Forrest W. Breyfogle, III
| Publication: Smarter Solutions, Inc
| Published: 2009-06-26
| Type: Article |
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| IEE V3 Book Excerpt "A resolution V DOE, Example 32.1" |
| In Design for Six Sigma (DFSS) and elsewhere, Design of Experiments (DOE) can be used in product design validation tests. In this example, Design of Experiment (DOE) techniques are used to validate a product design change in conjunction with an assessment of currently planned manufacturing tolerances. In this book excerpt, the reader is taken through a very robust sequence for the analysis of any DOE that provides a rapid and repeatable conclusion. This example includes a unique method to use probability plots to assess design limits. |
| Forrest W. Breyfogle, III
| Publication: Smarter Solutions, Inc
| Published: 2009-06-23
| Type: Article |
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| IEE System Book Excerpt" Firefighting Reduction through IEE |
| Many organizations struggle to get their efforts completed on time because of routine "Firefights" keep coming up and taking all the free time away if not delaying currently planned work. No matter how it is addressed, the problems continue to return. In this book excerpt, there is a discussion of the reasons they come back that is related to the methods used to monitor performance to specification. This is an excerpt from his first book in the Integrated Enterprise Excellence four book series. |
| Forrest W. Breyfogle, III
| Publication: Smarter Solutions, Inc
| Published: 2009-06-18
| Type: Article |
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| Corporate Performance Management: The Integrated Enterprise Excellence System |
Elephant-in-the-room business policies are not often openly discussed but can result in very unhealthy behaviors, as illustrated in our current economic crisis. This paper elaborates on these issues and describes an Integrated Enterprise Excellence (IEE) business governance system resolution. IEE integrates best practice management components and goes beyond traditional business techniques; e.g., the Balanced Scorecard and project-based process improvement techniques such as Lean Six Sigma. A Chief Performance Officer can use the IEE methodology for their Corporate Performance Management (CPM) system.
The current management system that companies are using can lead to very unhealthy, destructive behaviors and are a large part of the economic crisis that we are now experiencing. Common-place business management systems are broken and need reinvention. IEE is a 21st century business management governance system that addresses these needs and more by overcoming shortcomings in the following areas: organizational scorecard and dashboard metrics; strategic planning practices and their metrics; traditional table of numbers, pie charts, stacked bar charts and other forms of non-predictive scorecard reporting; variance to metric goals, red-yellow-green scorecards, and the balanced scorecard.
The predictive scorecard and other attributes of the Integrated Enterprise Excellence (IEE) system resolves these issues and gets organizations out of the firefighting mode, where common-cause issues are often reacted to as though they were special cause. IEE provides the guiding light for organizations to move toward achievement of the 3 Rs of business; i.e., everyone doing the Right things, and doing them Right, at the Right time. |
| Forrest W. Breyfogle, III
| Publication: Smarter Solutions, Inc
| Published: 2009-05-29
| Type: Article |
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| The Elephant in the Room – Corporate Performance Management Issues and it’s Reinvention:Going Beyond Lean Six Sigma and the Balanced Scorecard |
Lean Six Sigma, Total Quality Management (TQM), and other process improvement efforts have helped organizations improve; however, these efforts often occur in organizational silos, where the benefits are not felt at the big picture executive level. Lean conference presentations often describe how all company associates in a spirit of organizational improvement need to continually identify and resolve waste-reduction problems; i.e., overproduction, waiting, transportation, inventory, over-processing, motion, and defects. Even though there can be significant benefits from these efforts, Lean practitioner conversations at those same conferences can be describing how their organization eliminated much operational waste only to find that executive management decided to close their facility.
There are some elephant in the room business management governance policies that nobody seems to openly discuss. These topics and discussions can include red-yellow-green goal setting scorecards, variance to metric goal tracking, strategic planning sessions often lead to statements that are to have measurements and activities aligned to them, silo improvement efforts that don’t impact the big picture, control systems that are not effective (e.g., Sarbanes Oxley – SOX – did not prevent our current financial crisis from occurring.
A business system to address the above issues and accomplish these objectives is the Integrated Enterprise Excellence (IEE) system. In the IEE system, strategy is not step one but set five in a nine-step process. A Chief Performance Officer can use the IEE methodology for their Corporate Performance Management system. |
| Forrest W. Breyfogle, III
| Publication: Smarter Solutions, Inc
| Published: 2009-05-12
| Type: Article |
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| Are You @RISK? |
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. Have you ever encountered this type of an event or situation involving a new process?
This webinar 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 warranty 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 decision 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.
View this webinar as Rick Haynes, a 19 year Lean and Six Sigma practitioner, expounds and shares his vast array of Manufacturing, Transactional, and Research and Development experiences. |
| Rick Haynes
| Publication: SSI Webinar
| Published: 2009-05-01
| Type: Podcast |
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| Unemployed Excellence - Why Lean, Six Sigma Have Left Some People Out in the Cold |
| This week we welcome award winning author Forrest Breyfogle III to discuss the surprising job loss trend amongst Six Sigma Black Belt and Master Black Belt professionals that is linked, at least in part, to the current economic crisis. He will also share with us why his 4 book series on Integrated Enterprise Excellence coupled with the introduction of the Smarter Solutions 1-Day CEO Executive Session can lay the groundwork for reversing this trend while delivering tangible value to an organization’s bottom line |
| John Hansen
| Publication: Procurement Insights
| Published: 2009-04-23
| Type: Podcast |
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| The Balanced Scorecard: Issues and Resolution |
| The balanced scorecard, was presented in a 1992 Harvard Business Review article by Kaplan and Norton. The balanced scorecard tracks the business in the areas of financial, customer, internal processes, and learning and growth. It is important to have scorecard balance because if you don’t have balance you could be giving one metric more focus than another, which can lead to problems. For example, when focus is given in a scorecard to only on-time delivery, product quality could suffer dramatically to meet ship dates. However it is important that care be given in how this balance in scorecards is achieved. A natural balance is much more powerful than forcing balance through the organizational chart using a scorecard structure of financial, customer, internal business process, and learning and growth, which may not be directly appropriate to all business areas. In addition, we need to keep in mind that a scorecard structure that is closely tied to the organization chart has an additional disadvantage in that it will need to be changed whenever significant reorganization occurs.Integrated Enterprise Excellence (IEE) is a sustainable business management governance system, which integrates business scorecards, strategies, and process improvement so that organizations move toward the three Rs of business (everyone is doing the Right things and doing them Right at the Right time). IEE is a system that goes beyond Lean Six Sigma and the Balanced Scorecard. |
| Forrest W. Breyfogle, III
| Publication: SSI & Iqualityprocess
| Published: 2009-04-08
| Type: Article |
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