| One of the most powerful ways to improve business | | | | expressed as 3.4 defects per million opportunitieso |
| processes is combining business process management | | | | Methodology - structured approach to solving |
| (BPM) strategies with Six Sigma strategies. BPM | | | | problems that uses specific tools and process |
| strategies emphasize process improvements and | | | | mapping to achieve the metric goalo Philosophy - the |
| automation to drive performance, while Six Sigma | | | | enterprise-wide embrace of defect reduction by |
| uses statistical analysis to drive quality improvements. | | | | making decisions based on hard data and customer |
| The two strategies are not mutually exclusive, | | | | focus |
| however, and many companies have discovered that | | | | In short, Six Sigma allows an organization to reduce |
| combining BPM and Six Sigma can create dramatic | | | | the variability in its products and services so that |
| results. | | | | waste is reduced, efficiency is improved, and |
| BPM basics | | | | customer satisfaction is dramatically increased. |
| Let's first take a look at the basics of BPM. It uses a | | | | Business problems are solved through rigorous |
| four step method to create better processes and | | | | application of data collection and analysis tools. The |
| improve performance. The steps are as follows:o | | | | training that Six Sigma users receive is quite intensive, |
| Map the process (whether new or existing) from | | | | progressing through several increasingly sophisticated |
| start to finish, capturing each step along the wayo | | | | levels based on experience and accomplishment. |
| Execute the process by using people and automated | | | | Professional Six Sigma consultants and practitioners |
| applications, with specific assignments of | | | | usually work to become certified at the various |
| responsibilities and accountabilities for each stepo | | | | levels, increasing their ability to help guide |
| Manage the process through information flow, actions | | | | development and implementation of Six Sigma |
| and related activitieso Analyze process performance | | | | methodology. |
| and metrics, using findings as the basis for continuous | | | | The methodology of Six Sigma is key to its success. |
| process improvement | | | | An organization follows a five step progression that |
| BPM has a strong base in software applications to | | | | uses factual information and statistical analysis to |
| help streamline and automate processes. At the | | | | address achievement of operational goals. There are |
| software level, BPM is commonly applied within a | | | | some differences in the five steps depending on |
| single department or group to improve a specific | | | | whether they are used to improve an existing |
| process. | | | | process or design a new process. The end goal, |
| From the software level, BPM expands to a suite of | | | | though, is always to achieve the standard metric of |
| software applications. The suite level enables BPM to | | | | 99.9997% defect free performance. |
| link multiple departments or groups that affect | | | | Combining BPM and Six Sigma |
| processes. It promotes information sharing and | | | | With this basic understanding of BPM and Six Sigma in |
| accountability through use of a work portals where | | | | mind, it is easy to see how powerful it can be to |
| multiple users can share knowledge, documentation, | | | | combine the two practices. Their strengths |
| and process management. | | | | complement each other and create a synergy that |
| At its highest level, BPM expands to an | | | | infuses the entire operation with a focus on quality |
| enterprise-wide system. This level combines software | | | | and performance. |
| and IT aspects with management practices to | | | | The strength of BPM lies in its ability to automate |
| address broad structural and systemic issues within a | | | | processes and workflow through modeling and |
| business or organization. Business practices and | | | | examination of inputs, outputs and performance. It is |
| operations are examined from a holistic standpoint, | | | | not as strong, however, in its ability to analyze data |
| paying close attention to how occurrences in any one | | | | associated with very difficult or multifaceted |
| part of the system have a ripple effect across the | | | | problems. Six Sigma fills this gap by providing the |
| organization. | | | | statistical analysis needed to deal with complex |
| Six Sigma basics | | | | problems. |
| The concept of Six Sigma was developed at | | | | The strength of Six Sigma lies in its rigorous approach |
| Motorola in the 1980's as they worked to improve | | | | to data collection and analysis. Through this process it |
| the quality of their products and services. By | | | | is can identify even the smallest opportunities for |
| implementing a systematic, rigorous routine, they | | | | process improvement, maximizing an organization's |
| were able to improve their products and increase | | | | ability to institute necessary changes. It is not as |
| customer satisfaction, thus increasing profits. | | | | strong, however, in its ability to monitor process |
| Six Sigma approaches business processes from a | | | | improvements and ensure they are applied across |
| highly statistical standpoint. It incorporates three | | | | the board. BPM fills this gap by providing tools to |
| levels of activity:o Metrics - statistical focus to make | | | | automate process improvements and connect those |
| process outcomes 99.9997% defect free, otherwise | | | | improvements across the entire organization. |