Business Management Presentations Process Management

Combining BPM and 6-Sigma – Rudimentary Introduction

Transcript

Basics
0 Set of tools and strategies for process

improvement
0 Motorola, 1980’s: improve the quality of
products and services
0 Systematic, rigorous routine
0 Approaches business processes from a highly
analytical point of view
0 Incorporates five levels of activity

Six Sigma
0 Allows an organization to reduce the variability in its products and
services
 Reduce waste
 Increase efficiency
 Increase customer satisfaction
 Solve business problems through rigorous application of data collection
and analysis tools
0 Five step progression (DMAIC)
 Key to success of six sigma: methodology
 Uses information and statistical analysis to address the achievement of
operational goals.
 Some differences in the five steps depending on whether they are used to
improve an existing process or design a new process

0 Goal (always): standard metric of 99.9997% defect free performance

Basics (cont.)
0 Graph of the normal distribution
0 underlies statistical assumptions of 6 σ model
0 σ (sigma) marks distance on horizontal axis

between mean, µ, and curve’s inflection point
0 The greater this distance, the greater is the spread
of values encountered.

Philosophy
• Enterprise-wide embrace of defect reduction by making decisions based on hard data
and customer focus

Focus on the customer
• Meet or exceed customer requirements/expectations

Metrics
• Statistical focus to make process outcomes 99.9997% defect free
• (3.4 defects per million opportunities)

Methodology
• Structured approach to solving problems that uses specific tools and process
mapping to achieve the metric goal

Process based
• Defects or errors introduced into products or services are based upon deficiencies in
the processes

Five step progression (DMAIC)
0 Define

 Project goals and boundaries
 Identify issues to be addressed to achieve the higher sigma level

0 Measure

 Gather information about the current situation
 Obtain baseline data on current process performance
 Identify problem areas

0 Analyse

 Identify the root cause(s) of quality problems
 Confirm those causes using the appropriate data analysis tools

0 Improve

 Implement solutions that address the problems (analyse) phase

0 Control

 Evaluate and monitor the results of the improve phase

Basically identify an area where there is a process
problem, measure it, work out why there is a problem
and then fix it.

Combining BPM and Six Sigma

0 Methodology to prioritise the projects and close

the gaps

Reduces process variation
 improves process capability

 Addition to 6-σ methodology: emphasis on

removing non-value added work

Six Sigma

BPM

Strengths

Weaknesses

Ability to automate processes and
workflow
Through modelling and examination of
inputs, outputs and performance

Ability to analyse data associated
with very difficult or
multifaceted problems

Rigorous approach to data collection
and analysis.
 Can identify opportunities for
process improvement
 Maximizing ability to
institute necessary
changes

Ability to monitor process
improvements and ensure they
are applied across the board

 Their strengths complement each other
 Create a synergy

Entire operation with a focus on quality and
performance

BPM complements Six Sigma by providing
tools to automate process improvements
and connect those improvements across
the entire organisation

A powerful combination

Six Sigma complements
BPM by providing the
statistical analysis needed
to deal with complex
problems

Both BPM and 6-σ
 Represent significant commitments on the part of a business
or organisation

 Take time to implement thoroughly
 Tremendous organisational change is often required
It is well worth the time and effort to
generate the substantial business
improvements that are typical with BPM
and Six Sigma.
Most companies start with a single
department or pilot project and expand
their use over a multi-year period.

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