Monte Carlo Simulation Explained with Lean Six Sigma Application

The stereotypical Lean Six Sigma DMAIC project has a nice process that produces data at a rapid enough rate that you can evaluate improvements during the project, but what options do you have if that is not the case? Using Monte-Carlo simulations can be a powerful way to estimate future performance without having to actually pilot test or prototype the improvements.

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Enhanced Enterprise Performance Management System

The Enterprise process DMAIC roadmap provides a 21st century governance system that truly aligns scorecards, strategic planning, improvement plans, and control so that the enterprise as a whole benefits. E-DMAIC goes beyond Lean Six Sigma and the Balanced Scorecard. This view of the way a company functions can change from a focus on doing whatever it takes to meet the quarterly financial goals (the Enron approach) to improving performance at all levels so the overall output always reflects the maximum potential for an entire enterprise.

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Predictable Metrics for Decisive Leaders: The 9-Steps to Integrated Governance

There is no better time to look at your corporate big picture! Now, more than ever, it is essential to learn how to navigate through 2009. Competitive pressures are forcing employees of all ranks to react faster to changing business conditions and customer requirements. Starting with employee communications, learn how to improve performance, reduce conflicts and align teams for effective and profitable business results.

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Enhancing Process Capability Indices Cp and Cpk Reporting

Measurement issues can be prevalent at all levels of an organization. To add to this dilemma, the basic calculation and presentation of metrics can sometimes be deceiving. Organizations often state that suppliers must meet process capability objectives, typically measured in Cp, Cpk, Pp and Ppk. The requesters of these objectives often do not realize, however, that these reported numbers can be highly dependent upon how data is collected and interpreted. Also, these process capability metrics typically are utilized only at a component part level. To resolve these issues, practitioners need a common, easy-to-use fundamental measurement for making process stability and capability assessments at all levels of a business, independent of who is making the assessment – something beyond Cp, Cpk, Pp and Ppk.

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Enhanced Corporate Governance Model System

The American Management Association (AMA) describes a 21st-century governance system and how a company benefited from its deployment. The 9-step framework of the described Integrated Enterprise Excellence (IEE) business management system provides a guiding-light roadmap for navigating through and beyond these challenging times. IEE provides a long-lasting system for structurally integrating healthy policy creation and deployment with a systematic blending of scorecards, strategic planning, business improvement, and control so that the enterprise as a whole benefits. IEE system goes beyond many traditional and recent management techniques such as the balanced scorecard. Acknowledgment: Posted with permission from the American Management Association as published in the Winter 2008 Edition of their MWorld Magazine.

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Creation of Deming System of Profound Knowledge Framework

Total Quality Management (TQM), Lean, and Lean Six Sigma are problem-solving methodology examples. Each of these problem solving approaches has strengths and weaknesses; however, these techniques are not an organizational governance system. Some regard governance as a collection of separate processes, or as a component of broader management or leadership processes. A more inclusive governance definition is the need for consistent cohesive management policies, processes and decision-rights throughout the enterprise. Ideally this governance system should incorporate what W. Edwards Deming referred to as System of Profound knowledge. An Integrated Enterprise Excellence (IEE) roadmap system for this accomplishment is described in a 4 book-volume series.

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Enhanced Lean Six Sigma Black Belt Training Material

It is important that there needs to be new understanding of exactly what role Lean Six Sigma Black Belts (BBs) should play in today’s economy. Gone are the days when businesses deployed BBs as troubleshooters. Today, BBs, together with other Six Sigma practitioners, are indispensable partners in organizationwide initiatives that are grounded strategically and implemented on a highly structured basis to meet critical organizational goals. Included is the fostering of ongoing innovation, the use of business scorecards in ways that enhance rather than inhibit organizational improvement and the establishment of priorities that allow everyone in the organization to contribute to profit improvement. In this environment, everything that matters is measured, the only measurements made are those that matter, and every metric has an owner. The organization is practicing the Three Rs of business: Everyone is doing the right thing right at the right time.

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Understanding and Enhancing Process Capability Cpk Reporting

Cpk is one of many capability metrics that are available. When capability metrics are used, organizations typically provide a Cp and a Cpk. In this paper we will discuss the mechanics of these two capability metrics, along with the pros and cons. In summary, the Cpk can provide insight on performance to a requirement if the process data used in the calculation comes from a normal distribution. If the process data is non-normal or it is the result of a combination of processes (a mixture of processes) then it provides an underestimation of the true non-conformance capability.

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