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Citius Publishing

Lean

Management 2.0: Discovery of Integrated Enterprise Excellence

Too often process enhancements occur in silos where there is little positive impact on the big picture

Published: Monday, October 26, 2020 - 11:00

(Citius Publishing: Austin, TX) -- Everyone should be aware that organizations need to improve and adapt to survive. Because of this aspiration, a business may undertake a process improvement program such as lean or Six Sigma; however, often, these process improvement program undertakings are not long-lasting.

The reason for this occurrence is that, when leadership undertakes a program self-assessment, they often find that they cannot see a tangible big-picture positive financial impact from the conducted process improvement program’s efforts. Far too often, process enhancements from an improvement program occur in silos, where there is little if any positive impact on the big picture.

In the book Management 2.0: Discovery of Integrated Enterprise Excellence, author Forrest Breyfogle III describes organizational issues that commonly occur with tried-but-not-so-true techniques like strategic planning, the balanced scorecard, red-yellow-green scorecards, table-of-number reports, hoshin kanri, and lean Six Sigma programs. There also are explanations of fundamental issues with statistical control charting, process capability analyses, and acceptable quality level sampling quality tools and what to do differently to address the problems.

The tools in an automobile mechanic’s toolbox can be handy. However, a mechanic must know not only how to use his tools individually but also be able to apply the right tool correctly at the most appropriate time. Similarly, many business management and process improvement tools can be very beneficial; however, not unlike an automobile mechanic, the people in an organization must know when and how to use specific tools for the management and improvement of an organization. 

Breyfogle provides a road map for the wise utilization and execution of business management and improvement tools, both at the enterprise and process-improvement-project level. Described, for both manufacturing and transactional processes, are the use of traditional statistical and nonstatistical techniques so that there will be whole-enterprise benefits.

Proven techniques for improving an organization’s bottom line and better addressing customer wants, needs, and desires include analysis of variance (ANOVA), analysis of means (ANOM), brainstorming, cause-and-effect diagram, design of experiments, 5 Whys, gemba walk, general linear model, hypothesis testing, kaizen event, kanban, lean, muda, Pareto charts, plan-do-check-act, poka-yoke, define, measure, analyze, improve, and control (DMAIC), regression analysis, scatter plot, total productive maintenance, value stream mapping, visualization of data, and wisdom of the organization.

Chapter 9 of this book provides a discussion between Jorge and Hank about the use of a web page. This page uses hyperlinks directed toward the application of these tools in an enhanced Integrated Enterprise Excellence (IEE) lean Six Sigma DMAIC road map. 

Management 2.0 also describes the benefits and usage of the nine-step IEE business management system. Among other things, IEE provides a means to create and report 30,000-foot-level operational and satellite-level financial performance metrics, which separate common-cause variation from special-cause events.

When only common-cause variation is present in a process-output response, the IEE high-level 30,000-foot-level performance-metric reporting methodology utilizes data from the recent region of stability of a process’s output response to provide a predictive statement estimate. When a provided 30,000-foot-level futuristic statement is undesirable, this metric enhancement need pulls for the creation of a process-improvement project. This IEE approach for improving a Y response gives focus to enhancing the associated Xs and processes that impact the magnitude of a Y’s response level. 

Management 2.0 also provides access to free software for creating 30,000-foot-level and satellite-level reports described in this book. There is no licensing fee for the use of this software.

The video “How to Report Performance Metrics – Continuous Response” that illustrates application of the app is also available.

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About The Author

Citius Publishing’s picture

Citius Publishing

As a leading independent publisher, Citius Publishing Inc. is dedicated to providing you with distinctive perspectives on lean, Six Sigma, process improvement and the Integrated Enterprise Excellence management system. Citius Publishing Inc. was founded in 2007 by Forrest Breyfogle to make leading edge resources available to improvement practitioners as well as business leaders and managers.

Resources include textbooks that are used in executive management overviews, college classroom instruction, Lean Six Sigma courses, and a comprehensive practitioner online resource library to name a few. In 2010, we released a spiral-bound project execution roadmap guide book, so that every level of the organization has access to the knowledge and tools to make their business a success.

Comments

Six Sigma Stupidity

Mr Breyfogle advocates Six Sigma (with or without "Lean" tacked on)

Six Sigma is a destructive scam based on pure farce. It was created by psychologist, Mikel Harry. Harry claimed that all processes drift by +/-1.5 sigma, every 50 measurements, making them wildly out-of-control and unpredictable.  It is hence impossible for a Six Sigma process to produce quality product, no matter where specification limits are set.  Harry based his ludicrous claim on the height of a stack of discs! 

Perhaps Mr Breyfogle can explain why he believes Harry's stack of discs, makes all processes wildly out of control?

Harry later admitted to the Six Sigma farce in his "Shifty Business" article.

EVERY aspect of Six Sigma is as worthless as its laughable foundations.

Dr Wheeler, the world’s leading process statistician, calls Six Sigma “GOOFY” and equates belief in the trash, to belief in tooth fairy.  CBS calls it the most stupid fad of all time.

Of the 58 large companies that announced Six Sigma programs, 91 percent have trailed the S&P 500 since.  Six Sigma destroyed its once best reference GE ... before they tossed the trash out.

Why do people turn their backs on the great men of QUALITY:  Professor Deming, Professor Lewis, Professor Ishikawa, Dr Shewhart and Dr Wheeler, for the lunacy of psychologist/salesman Mikel Harry.

Please read my papers exposing the Six Sigma scam: 

https://www.qualitydigest.com/inside/six-sigma-article/sick-sigma-041806.html

https://www.qualitydigest.com/inside/quality-insider-column/six-sigma-psychology.html

https://www.qualitydigest.com/inside/six-sigma-article/predictable-061318.html

https://www.qualitydigest.com/inside/six-sigma-article/six-sigma-lessons-deming-part-1

https://www.qualitydigest.com/inside/six-sigma-article/six-sigma-lessons-deming-part-2

- Dr Burns