Combining BPM and 6-Sigma - Rudimentary Introduction
1.
2. 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
3. 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
4. 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.
5. 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
6. 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.
7. 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
8. 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
9. 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
10. 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.
Notes de l'éditeur
Term comes from the notion that if one has six standard deviations between the process mean and the nearest specification limit, practically no items will fail to meet specifications.This is based on the calculation method employed in process capability studies.Capability studies measure the number of standard deviations between the process mean and the nearest specification limit in sigma units. As process standard deviation goes up, or the mean of the process moves away from the centre of the tolerance, fewer standard deviations will fit between the mean and the nearest specification limit, decreasing the sigma number and increasing the likelihood of items outside specification.
For the green curve shown above, µ = 0 and σ = 1. The upper and lower specification limits (USL and LSL, respectively) are at a distance of 6σ from the mean. Because of the properties of the normal distribution, values lying that far away from the mean are extremely unlikely. Even if the mean were to move right or left by 1.5σ at some point in the future (1.5 sigma shift, coloured red and blue), there is still a good safety cushion. This is why Six Sigma aims to have processes where the mean is at least 6σ away from the nearest specification limit.