Organizations benefit when utilizing a next generation lean measurement and improvement system. The Integrated Enterprise Excellence (IEE) methodology provides a means to accomplish this enhancement to lean. IEE integrates lean tools with predictive scorecards and analytical/innovative strategies so that undertaken process improvement efforts have whole-enterprise benefits.
Lean provides a good tool set; however, it is not a business management system. With an IEE approach, lean tools can be structurally integrated within the overall enterprise management system. The published article (available below) provides the details of how to create this next generation lean measurement and improvement system.
This IEE next generation lean measurement and improvement system addresses the one-minute video-described traditional performance measurements issues.
In Lean Six Sigma, improvement projects are to follow a Define-Measure-Analyze-Improve-Control (DMAIC) roadmap. Within the IEE system, there are two DMAIC roadmaps; i.e., Project-DMAIC (P-DMAIC) and Enterprise process DMAIC (E-DMAIC).
Next Generation Lean Process Improvement Methodology
The E-DMAIC roadmap portion of the IEE system provides the framework for an enhanced business management system. This methodology offers an integration of techniques for the creation of a next generation lean measurement and improvement system.
One aspect of an overall E-DMAIC system addresses organizational control. The IEE value chain, integrates operational procedures with predictive performance metrics; i.e., a component of the Define and Measure phases of the E-DMAIC system.
In an IEE value chain (example shown below), organizational and control procedures are presented by clicking the drill downs of the rectangular boxes, while predictive 30,000-foot-level performance metrics are displayed as a business scorecard by simply clicking on the oblong boxes. This approach provides a next generation lean measurement and improvement system.
In IEE’s value chain, Lean metrics such as lead time or on-time delivery can be assessed for process stability, noting that if a process has a recent region of stability, it can be considered predictable. For a continuous response that has a specification, an IEE stability assessment would be made through a 30,000-foot-level control chart, while the predictability statement would be made using a probability plot of the data from the recent region of stability.
With this form of IEE metric report out, the probability plot provides an expected percent non-conformance rate if the process were to continue its current-state performance. For the following illustration, about 13.7% of the transactions are expected to be beyond the specification limits of -5.0 and 1.0; i.e., (100-92.4) + 6.2=13.8.
If this level of performance is not satisfactory, process improvement is needed. An effective process improvement effort would result in the shift of the 30,000-foot-level control chart to a new, improved level of performance that is quantified through another probability plot of the after-improvement data.
The book, Integrated Enterprise Excellence Volume II, Business Deployment: A Leaders′ Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard provides the details for implementing E-DMAIC.
For more information on the described next generation lean measurement and improvement system, download the September 2012 ASQ Lean Enterprise Division Newsletter article titled ″Integration Of Lean Tools With Predictive Scorecards″ written by Forrest Breyfogle.
Contact Us to set up a time to discuss with Forrest Breyfogle how your organization might gain much from an IEE Business Management System implementation for the enhancement of lean.