Integrated Enterprise Excellence (IEE) business management system books offer two appearances for an IEE value chain.
An IEE value chain describes what an organization does and how the organization measures what is done in each function.
An IEE value chain should not be confused with an organization’s value stream map. A value stream map displays the essential steps of the work process flow necessary to deliver value from start to finish. Value stream maps can be within IEE value chain functions.
IEE Volume II (published in 2008) provides an IEE value chain appearance of
With this IEE value chain appearance, there is an alignment in one page of both organizational functions (rectangles in the value chain) and the function’s associated metrics (oblong images), typically from a quality, cost, and time perspective. The primary functional flow for an organization are connected by arrows. Support functions are not.
A significant shortcoming of this approach to describe an organization’s IEE value chain is too much information appears on one page for “clickable” drill-downs of metrics and functional procedures to be practical, e.g., with the installation of Enterprise Performance Reporting System [EPRS] software behind an organization’s firewall.
Later articles and Management 2.0 and Leadership System 2.0 books provide an alternative IEE value chain appearance. With this approach, an enterprise-level value chain (upper right image in the following figure) can drill down to where metrics and their processes appear in two swim lanes (lower left image in the following figure).
The shaded functions (rectangles) and metrics (oblong images) indicates that a drill down exists to either a 30,000-foot-level reported metric or functional procedures and documentation.
Organizations have procedures that result in measurement outcomes, which may or may not be documented. The IEE value chain provides a means to show connections between the Ys (functional metrics outputs) in an organization and the Xs (functional inputs, i.e., procedures in an organization that lead to the reported Ys). Mathematically this is expressed as Y=f(X).
Application of IEE value chain:
- Behind an organization’s firewall, which has automatically updated 30,00-foot-level reporting (e.g., daily) and is clickable by all authorized 24 x 7. This can be accomplished through Enterprise Performance Reporting System (EPRS) software.
- IEE Blackbelt or Greenbelt presentation report-out, where a generic value chain is shown (like the previous figure) and the metric to improve through execution of the project is highlighted (e.g., on-time delivery or non-conformance rate in deliver services function). Note, a simple organizational EIP should also show in an IEE Blackbelt or Greenbelt project alignment of this metric’s improvement to a organization’s overall financial metric (e.g., satellite-level reporting of mean monthly profit). The benefits of this form of IEE Black Belt or Green Belt project report-outs is that leadership and others can see how an improvement project benefits the organization’s financial metrics as a whole.