ARTICLES (WHITE PAPER)

Smarter Solutions, Inc. provides in these articles (white paper) how-to details that can have significant benefit to both organizational leadership and practitioners. Described (among other things) is the Integrated Enterprise Excellence (IEE) business management and improvement system which goes beyond Lean Six Sigma and the Balanced Scorecard. IEE provides a means to integrated predictive scorecards with the processes that created them. From IEE, organizations can determine where to focus improvement efforts so that the business as a whole benefits.

Enhancing Balanced Scorecard Key Performance Indicators

The Balanced scorecard, was presented in a 1992 Harvard Business Review article by Kaplan and Norton. Many organizations has adopted this idea into their business practices with a wide range of success levels. In the Integrated Enterprise Excellence (IEE) system book, Forrest Breyfogle examines the benefits and true problems with the Balanced Scorecard as currently documented and provides ideas how to use the concept without any of the clear issues. This is an excerpt from his first book in the Integrated Enterprise Excellence four book series.

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Corporate Performance Management Framework System and Software

Elephant-in-the-room business policies are not often openly discussed but can result in very unhealthy behaviors, as illustrated in our current economic crisis. This paper elaborates on these issues and describes an Integrated Enterprise Excellence (IEE) business governance system resolution. IEE integrates best practice management components and goes beyond traditional business techniques; e.g., the Balanced Scorecard and project-based process improvement techniques such as Lean Six Sigma. A Chief Performance Officer can use the IEE methodology for their Corporate Performance Management (CPM) system. The current management system that companies are using can lead to very unhealthy, destructive behaviors and are a large part of the economic crisis that we are now experiencing. Common-place business management systems are broken and need reinvention. IEE is a 21st century business management governance system that addresses these needs and more by overcoming shortcomings in the following areas: organizational scorecard and dashboard metrics; strategic planning practices and their metrics; traditional table of numbers, pie charts, stacked bar charts and other forms of non-predictive scorecard reporting; variance to metric goals, red-yellow-green scorecards, and the balanced scorecard. The predictive scorecard and other attributes of the Integrated Enterprise Excellence (IEE) system resolves these issues and gets organizations out of the firefighting mode, where common-cause issues are often reacted to as though they were special cause. IEE provides the guiding light for organizations to move toward achievement of the 3 Rs of business; i.e., everyone doing the Right things, and doing them Right, at the Right time.

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Enhanced Corporate Performance Management Systems Framework

Lean Six Sigma, Total Quality Management (TQM), and other process improvement efforts have helped organizations improve; however, these efforts often occur in organizational silos, where the benefits are not felt at the big picture executive level. Lean conference presentations often describe how all company associates in a spirit of organizational improvement need to continually identify and resolve waste-reduction problems; i.e., overproduction, waiting, transportation, inventory, over-processing, motion, and defects. Even though there can be significant benefits from these efforts, Lean practitioner conversations at those same conferences can be describing how their organization eliminated much operational waste only to find that executive management decided to close their facility. There are some elephant in the room business management governance policies that nobody seems to openly discuss. These topics and discussions can include red-yellow-green goal setting scorecards, variance to metric goal tracking, strategic planning sessions often lead to statements that are to have measurements and activities aligned to them, silo improvement efforts that don’t impact the big picture, control systems that are not effective (e.g., Sarbanes Oxley – SOX – did not prevent our current financial crisis from occurring. A business system to address the above issues and accomplish these objectives is the Integrated Enterprise Excellence (IEE) system. In the IEE system, strategy is not step one but set five in a nine-step process. A Chief Performance Officer can use the IEE methodology for their Corporate Performance Management system.

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Enhancing Balanced Scorecard Metrics

The balanced scorecard, was presented in a 1992 Harvard Business Review article by Kaplan and Norton. The balanced scorecard tracks the business in the areas of financial, customer, internal processes, and learning and growth. It is important to have scorecard balance because if you don’t have balance you could be giving one metric more focus than another, which can lead to problems. For example, when focus is given in a scorecard to only on-time delivery, product quality could suffer dramatically to meet ship dates. However it is important that care be given in how this balance in scorecards is achieved. A natural balance is much more powerful than forcing balance through the organizational chart using a scorecard structure of financial, customer, internal business process, and learning and growth, which may not be directly appropriate to all business areas. In addition, we need to keep in mind that a scorecard structure that is closely tied to the organization chart has an additional disadvantage in that it will need to be changed whenever significant reorganization occurs.Integrated Enterprise Excellence (IEE) is a sustainable business management governance system, which integrates business scorecards, strategies, and process improvement so that organizations move toward the three Rs of business (everyone is doing the Right things and doing them Right at the Right time). IEE is a system that goes beyond Lean Six Sigma and the Balanced Scorecard.

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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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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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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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Enhanced Quality Management System Presentation

Specializing in coaching and consulting, we introduce to companies the next generation of Lean Six Sigma: Integrated Enterprise Excellence (IEE). With daily operations throughout the world, Smarter Solutions aspires to be the best world-class firm for designing and applying innovative enterprise-wide performance measures and business solutions.

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