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Lean Six Sigma For Enterprise Resource Planning: Four Principles For Chief Executives

Dec 2, 2007
Importance Of A Balanced Approach

Though few executives can prove their mission and statement with concrete numerical data, they do know how the initiatives drive the improvement in operations.

In contrast, other executives believe more in providing measurable bottom line results with dramatic numbers. They orchestrate the deployment in such a way that they provide the highest yields at points where there should be the greatest impact on the bottom line and apply the strategy in the most opportune times.

Now the big question is 'which of the two processes is the best?' Executives can utilize the help of the Integrated Enterprise Excellence System to determine which process is flawed. The Integrated Enterprise Excellence System, however, advocates a more balanced approach - that is, instead of replicating projects, it designs and replicates the system by using a combination of both the approaches. Using a combination Six Sigma strategy provides the senior executives with a power enhancing balanced scorecard that serves as a roadmap for continually increasing corporate profitability.

Chief executives who adopt this balanced approach, along with Lean Six Sigma for future management of operations, arm themselves with substantiated metrics that not only measure, but also drive business processes. They believe that prevention is better than cure; therefore, they avoid setting up any project that may become counterproductive. A balanced approach will assure the organization of continuous improvement, regardless of management changes. Managers tend to solve difficult problems more quickly and efficiently when they follow this approach.

Lean Six Sigma-The Universal Panacea

Lean Six Sigma can be used in every phase of business processes, from floor manufacturing operations to sales and from human resources to IT and R&D. Six Sigma is present everywhere and helps to improve all the processes of these crucial business units. Given below are four principles that can be used by the chief executives, to help set the platform for implementing the Integrated Enterprise Excellence system:

Sound View Of Numbers

The first set of chief executives won't be exactly thrilled with this principle while the second lot will probably be overjoyed. This difference may create counterproductive behavior, as some have a phobia in the area of metrics, while others treat numbers as the holy grail, irrespective of whether the measurements affect performance or not.

30,000 Foot vs. Satellite Metrics

For any process to be successful, the chief executive should only take those metrics into consideration that prove useful to the process:

1) Measuring operational level components throughout the components, which is more popularly known as the 30,000-foot level metric.

2) Measuring the factors that affect overall corporate finances, more commonly known as Satellite level metrics. These metrics analyze the overall performance of an enterprise.

Comprehending Non-Conformance

There are two types of variability causes to which non-conformance can be traced back and which can create problems. One involves temporary employee issues or faulty assembly of product, while the other is the common cause flaw in design of a product or variability in supplier's raw material.

Resistance From Internal Forces

The Integrated Enterprise Excellence System gives the chief executive a clear picture of what is working and what is not and the implementation of such a crystal clear system is definite to meet with resistance from the internal staff members.
About the Author
Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.
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