Author name: Forrest Breyfogle

Business Management System: Issues and Resolution

Executive leadership benefits when it has a business management system that orchestrates predictive scorecards, analytically/innovatively determine strategies, and identification/execution of process improvement projects that benefit the enterprise as a whole. Current business practices have shortcomings relative to the integration of these methodologies.

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Enhancement of Porter Value Chain Framework and its Predictive Scorecards

Linkage of processes with the predictive performance measurements for these processes is accomplished through an Integrated Enterprise Excellence (IEE)1 value chain. With this system, when a performance metric or key performance indicator (KPI) is not achieving its desired objective, the processes associated with that metric in the value chain need improvement.

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Individuals Control Chart (XmR chart, I chart) Reporting

Individuals control charts (I-charts or X-charts) can be used for time-series tracking of a process to determine if the process is in statistical control and can be considered stable. When a process is considered stable, it experiences only common-cause variability. When a process is not in control, special-cause conditions can be causing non-stability.

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Lean Implementation with Business System Integration

Lean has a very good tool set; however, it is not a business management system. To better address the challenges of the day, organizations need an effective business management system that integrates Lean tools with predictive scorecards and analytical/innovative strategies so that undertaken process improvement efforts have whole-enterprise benefits. The Integrated Enterprise Excellence (IEE)1 business management system, which is illustrated in Figure 1, accomplishes this organizational objective.

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How to Create Performance Measurements and Metrics that are Predictive

Once a process is determined to be predictable, the next obvious question is: What is predicted for the metric? To address this in terms of percentage nonconformance, process capability and performance index (Cp, Cpk, Pp and Ppk), or sigma quality level, a specification is needed. But many metrics don’t have one. To get around this shortcoming, organizations sometimes create targets and analyze them as if they were specifications. But this practice can yield deceptive results because targets are often subjective, and then you may be playing games with these objectives. This article describes a method for reporting and improving process capability and performance when there is no specification.

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Integrated Enterprise Excellence: An Enhanced Business System

Forrest Breyfogle discusses how the Integrated Enterprise Excellence (IEE) system works to help organizations manage scorecards, metrics, performance reporting, improvement projects, and strategic planning. IEE is an enhanced business methodology that addresses many shortcomings of current management practices. Integrated Enterprise Excellence is a nine step business system. This video briefly describes how these nine steps are used to effectively manage and drive improvements that positively impact the enterprise.

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