Author name: Forrest Breyfogle

Enhanced Process Improvement Methodologies for Business and Projects

Business Management System, Business Process Management /

There is often much contention between Six Sigma and lean communities. Lean disciples often believe that their methodologies should come first or be above Six Sigma, relative to organizational application, while others with a strong Six Sigma background propose just the opposite.Many process improvement programs now refer to their deployments as lean Six Sigma; however, these programs still tend to consider the tools in isolation without a true tool-integration road map. To address this integration issue, an examination of the measurement that is to be improved can provide insight into which tool or tools would be most applicable for any given situation.

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Executing Theory of Constraints Principles in a Business Management System

Business Management System, Integrated Enterprise Excellence /

In lean Six Sigma and lean kaizen event programs, improvement projects are often selected from a list of potential opportunities that were determined from a brainstorming session. This effort might provide some initial gains when starting a deployment; however, it typically stalls out and the process improvement teams are laid off when times get tough. The reason for this downsizing is that often process improvement efforts are not expended in areas where the overall enterprise benefits the most; e.g., focusing on sales and marketing when excess production capacity is available. This article walks through some of the frequent short-comings of Theory of Constraints and how it can best be applied to the enterprise.

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Enhanced Predictive Analytics Tools for Scorecards and Business Improvement

Business Intelligence and Analytics, Predictive Analytics /

Business organizations need a business management system that has predictive scorecards, which encourage behaviors that benefit the enterprise as a whole. Common place red-yellow-green goal-based scorecards can lead to silo improvement efforts that result in much firefighting. In addition, traditional metric reporting that consists of a table of numbers, pie charts, or stacked bar charts are not predictive and provide only a snapshot of the past with no assessment of what is expected in the future. Also, variance to metric goals can lead to playing games with the numbers, which can be destructive to the business as a whole. The balanced scorecard approach for choosing metrics after strategy selection can lead to subjective metrics and measurements that are not long-lasting and are a function of economic and leadership changes. Described is an overall corporate performance management (CPM) system where organizations can analyze their predictive value-chain metrics collectively with other considerations, such as the current business-economic environment and the Theory of Constraints (TOC), to develop strategies.

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Enhanced Stoplight Report Template Software

Performance Measurements, Predictive Scorecard Software /

Organizations often describe their business performance using a table of numbers, stack bar charts, and/or pie charts. Red-yellow-green scorecards may also be used for an assessment of how well a function is performing relative to established goals. Traditional performance scorecards present historical information for some timeframe with no predictive statement. Business decisions made through the use of these charts are not unlike driving a car by only looking at its rear view mirror. What organizations need is a predictive metric reporting system. This futuristic assessment can then be utilized so that if expected future performance is not desirable, adjustments can be made. This is not unlike making an automobile driving adjustment using a steering wheel or brake/gas pedal, where this mechanical intervention is analogous to incorporating process improvement activities. The described Statistical Business Performance Charting (SBPC) methodology can, for example, reduce firefighting when the performance measurement system replaces organizational red-yellow-green scorecards, which often have no structured plan for making goal-setting improvement objectives. This article describes how organizations can benefit from a SBPC scorecard or dashboard system, which can guide them to the most appropriate performance-measurement system actions or non-actions in both manufacturing and transactional processes.

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Statistical Transformations for Normality: NOT Transforming The Data Can Be Fatal To Your Analysis

Performance Measurements, Process Metrics /

There is debate whether, in statistical process control (SPC), a data transformation should be considered when constructing an individuals chart. This article shows, using real data, why an appropriate data transformation is very important to determine the best action or non-action to take in both manufacturing and transactional processes at any point in time. Described in this article is also an enhancement to traditional process control charting methodology. The described statistical business performance charting (SBPC) system can, for example, reduce firefighting when the approach replaces organizational goal-setting red-yellow-green scorecards, which often have no structured plan for making improvements. In addition, the methodology provides predictive performance statements. Donald Wheeler and Forrest have a difference of opinion about the need to transform data when a transformation makes physical sense. The reason for writing this article is to provide information on the reasoning for Forrest’s position. Hopefully this supplemental explanation will provide readers with enough insight so that they can make the best logical decision relative to considering data transformations or not.

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Creating Profitable-Green-Business Strategies

Uncategorized /

Many businesses adopt Green strategies as part of their business plan in an effort to be good stewards of the environment and their community. No one can argue that this is not a good thing to do. However, often these efforts can become a silo activity relative to other organizational initiatives, resulting in a significant negative impact to the corporate financials. Because of the economic implication, this approach for implementing Green could jeopardize future environmental-improvement efforts. VIEW NOW, and learn about an alternative business system approach to integrating Green strategies with other organizational strategies so that created environmental-enhancement efforts either improve or do not degrade the current financials. Described is a methodology for targeting Green efforts so that there is success, while maintaining or enhancing overall business benefits.

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Log Transformation: Non-Normal Data, To Transform Or Not To Transform

Performance Measurements, Process Metrics /

This article was written as an alternative approach to analyzing non-normal data to that which was presented by Dr. Don Wheeler in a previous Quality Digest newsletter. This article illustrates, from a high level, or 30,000-foot-level, when and how to apply transformations and present results to others so that the data analysis leads to the most appropriate action or nonaction. Statistical software makes the application of transformations simple.

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Enhanced Business Strategy Model for C-Suite Leadership

Business Management System, Integrated Enterprise Excellence /

Executive leadership needs to assess its business system, especially in times of economic challenge, to determine if its current management system can handle the increasing complexity of business. What organizations need is an enhanced methodology that provides the framework for leadership to systematically understand and manage its organization through an ever-changing environment. This paper describes a 9-step Integrated Enterprise Excellence business management governance system. This system is more than a problem solving project execution system such as Lean Six Sigma or Lean kaizen events. Provided in this 9-step methodology is a system that goes beyond the balanced scorecard and truly integrates (predictive) scorecards, (analytically/innovatively determined) strategic planning, and business process improvement efforts so that the business as a whole benefits and moves toward achieving the three Rs of business; i.e., everyone doing the Right things and doing them Right at the Right time.

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Lean Six Sigma Training Objectives: What is Good Training for Your Situation

Lean Six Sigma, Process Improvement Training and Certification /

One of several lean six sigma training outcome-desires should be chosen before one selects what lean Six Sigma training program to undertake. It is important to consider whether a simple “certification” stamp is desired or a true understanding of how to effectively apply lean Six Sigma techniques to improve processes and their metrics.  If only

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