Dr. W. Edwards Demming – American Genius Part 1

W. Edwards Deming, in his book, Out of the Crisis (Massachusetts Institute of Technology, 1982) stated, “We shall speak of faults of the system as common causes of trouble, and faults from fleeting events as special causes….”

Does Deming and Shewhart view the theory of variation differently?  Forrest Breyfogle says that mathematically the control limits for a Shewhart x-bar and R chart are not affected at all by variability between subgroups.

To illustrate the implication of this consider that you have a raw material lot that changes every day and it has a large affect on the response of the process. Remember we are subgrouping by day. The x-bar plot of an x-bar & R control chart will invariably show many out of control signals; i.e., the Shewart term “assignable cause” can be applied to the raw material.

However, most people I ask will consider that the natural up and down variability of the raw material inputs to be a potential source of common-cause variability (Deming term) to the process; i.e., it is just the variability from an input parameter.

If the mean value is analyzed using an individual control chart, this variability will show as common cause; i.e., data will be in control. This is because the variability calculating the control limits for the individuals control chart is the moving range between adjacent subgroups.

Additionally, if only a single sample were chosen daily and placed into an individuals control chart (I-Chart) (instead of using multiple samples in a subgroup), the data would be shown as “common cause” variability.

The enterprise can benefit most from Six Sigma when they have an integrated scorecards and strategic planning system which leads to targeted projects that have the most enterpise-as-a-whole benefit. Silo projects in isolation that appear beneficial but have little overall enterprise financial benefit can be avoided if this approach is used. For example, from a manufacturing point of view Six Sigma production efficiency-improvement projects could appear beneficial; however, if currently the organization has much excess capacity, it can be more advantageous, from an overall business perspective, to focus on improving sales and marketing efforts.

The Enterprise process DMAIC (E-DMAIC) business-system roadmap is a systematic means to identify and execute projects that have the most benefits to the business. Strategies created analytically and innovatively can establish goals for an organization’s value chain 30,000-foot-level reported metrics that would have the greatest dynamic impact on the financials using the Integrated Enterprise Excellence system. These improvement needs would “pull” or create improvement projects that woudl impact these metrics in a postive manner.

Organizations can enhance Lean Six Sigma Black Belt training for their six sigma black belts by including Forrest Breyfogle’s Integrated Enterprise Excellence System that goes the Balanced Scorecard.

Several 30,000-foot-level articles can be found in the “On-line Resource Library” link at www.SmarterSolutions.com.

The white paper, “Creation of Effective Organizational Predictive Metrics that Lead to the 3 Rs of Business” by Forrest W. Breyfogle, III describes on how to create 30,000-foot-level charts for various situations and much more. You can also visit www.ieeblackbelt.com for more information on lean six sigma black belts.

When it comes to switching to electronic procurement, many companies misuse the concept of strategic sourcing. They actually use the term to mean something else – a sort-of cover up for another corporate move. They use the term “strategic sourcing” in place of saying they are streamlining costs.

Strategic sourcing, in the core essence of the term, pertains to the attempts and efforts of the buyers to be extremely cautious in evaluating and establishing long-term relationship with their suppliers. This, in itself, is the “strategy” that a company can claim – how its buyers create that lasting interrelationship with the suppliers – because it entails cultural reconciliation between the buyer and the supplier. For an interrelationship to become mutually beneficial, either or both parties have to embrace change in attitude, tradition, and perhaps some beliefs. This approach requires profound and far-reaching planning, and other management considerations. The strategic configuration, because of its specific processes, can be considered in practice within a company.

The key to reaching a long-term plan is adopting and forming an operational process that will navigate the procurement group to the right and relevant track. It is critical for the development and implementation of the strategy.

From any company’s statements of income, specifically a manufacturing company, much of the revenue or sales of the business is reduced because of the cost of goods. Most of the time, ¾ of the company’s sales reduction is caused by the requirement to purchase raw materials for product manufacturing. So what can be done? A company can form a team which will serve as the enforcer of procurement strategy. The responsibility of the team is to ensure proper implementation of the operational processes involving supplier relations. Such will absolutely increase the business’ net income.

Adopting strategic sourcing requires critical decision making, hence should be planned out well properly. Long operational processes are expected to be undergone by the company since strategic sourcing is a long-term endeavour. Strategic sourcing does not end and is not achieved by merely using the term with the intention of cutting costs.

Oracle Packaging: A Case Study For Integrated Enterprise Excellence

Unfortunately it is probably often true that someone could be reprimanded because of a know-it-all attitude by leadership when suggesting how the overall business could be improved.  However, now top leadership is often having major credibility problems, which could mean the stage is set for change.

However, suggesting an improved business system will not be easy.  Success is often dependent upon how we approach leadership.  Advocacy selling is the way to go. A leading thinking influencer can have top leadership connections.  Headway can be made through his person when presenting a clear concise approach that directly addresses leadership pains; i.e., not selling the benefits.  What needs selling is an enterprise-wide system that is much grander than implementing process improvement projects from a brainstorming session.

The following statement makes sense to me: “We all need a different set of business approaches and metrics that can bring sustainability to our own future development.  We must do something different now or our grandchildren will not have the same life that we know and love.”

For sure advocacy selling can influence leadership who strive to do the right things for the enterprise.  Surely there are leaders that would like to have a no nonsense system for measurements, analyses (blended with innovation), and improvements that benefit the system as a whole.  There must come a time when corporate america moves away from top executive changes every new season with an accompanying new-fangled business methology, where the old guard was granted a major golden parachute even as the company value plumeted during their term.

Let us help you make your case!  Suggest the Integrated Enterprise Excellence Executive Overview to your senior executives.

Can you use some help implementing process improvement systems for your enterprise? Achieve the Three Rs of Business; Everybody doing the Right things and doing them Right at the Right time. Subscribe to the articles in the “On-line Resource Center” at www.SmarterSolutions.com” that provide insight to a long-lasting Integrated Enterprise Excellence (IEE) system that overcomes these issues.

If you have a passion for implementing process improvement systems, consider becoming an IEE Blackbelt.

Dr. Edwards Deming’s Profound Knowledge deals with Systems Thinking, Statistical Thinking, Scientific Thinking, Applications of Psychology; but today’s business management system and its scorecards are not aligned to this philosophy. How does this impact your lean six sigma methodology?

As Deming pointed out it is important that managers understand variability. We need to have an executive metric reporting scorecard, dashboard reporting system that describes this variability so that appropriate actions occur. We’re not dealing with rocket science here. Is it different? Yes. As we are seeing in the economy today, if organizations don’t make the change they can have very detrimental behaviors that can be very costly.

The systems of business management are not work and they must be reinvented! Metrics and the way we report them is a critical part of this reinvention or nothing will change.

Red-yellow-green scorecards, for example, can lead to much detrimental behavior and significant firefighting. Looking down from the 30,000-foot-level on red-yellow-green scorecards shows how nothing truly important may have changed although the colors toggle back and forth.

The primary role of traditional control charts is to identify when special cause conditions occur so that corrective action can be taken in a timely fashion. We can create an individuals control chart (not an x-bar and R chart) to create a 30,000-foot-level metric report to assesses whether a process is predictable and, if appropriate, declare a prediction statement.

Even though there was much toggling between the colors no improvements were made because the 30,000-foot-level control chart did not move to a new level of stability. The probability plot (data considered a random sample of the future since there is a recent level of stability) predicts a red condition about 1/3 the events in the future. If this is not satisfactory when considered with all metric conditions a process improvement would be pulled by this measurement for creation.

This situation is not unlike Edward Deming’s red bead experiment where people were getting praised or criticized based only on the color of a bead they had chosen at random. Isn’t this not unlike what is frequently happening in businesses today to you because of our metric system?

This system takes tools of the balanced scorecard and lean six sigma methodology to an enterprise management system.

Several 30,000-foot-level articles can be found in the “On-line Resource Library” link at www.SmarterSolutions.com.

The white paper, “Creation of Effective Organizational Predictive Metrics that Lead to the 3 Rs of Business” by Forrest W. Breyfogle, III describes on how to create 30,000-foot-level charts for various situations and much more. You can also visit www.ieeblackbelt.com for more information on lean six sigma methodology.

What is a SWOT analysis (also known very simply as a SWOT) and why is doing one important to your business? Use this sample SWOT analysis to help you do your own SWOT. All small businesses need to include a SWOT in their strategic planning. SWOT is a key element of successful strategy development.

I saw a company once that listed its mission as producing a product with minimum impact on the environment. While certainly a noble idea, I would ask if they were willing to sacrifice the success of their business to reduce their impact on the environment. Really, their mission was to produce the product. Doing so in an environmentally sensitive way was certainly a key result they wanted and should be a central theme in the plan. This environmental concern will definitely impact their efforts, but it wasn’t the mission. I suspect though that it was the vision of the company’s owner. So the mission was to produce a product but the owner’s vision was to be a company that produced a great product in an environmentally friendly way.

In another example, a non-profit organization I worked with wanted to restart a thrift store. They said their mission was to provide a place where people could sell their used and unwanted items. I asked what the proceeds from those sales would be used for and was told the store’s profits supported several local charities. So, I asked if, considering overhead expenses and very generous consignment policies, they would be willing to forgo the charitable gifts as long as people had a place to bring their used and unwanted items. At that point the light went on and the organization developed a mission statement spelling out that their prime reason for being was to raise money for charities. The manager then called all the workers together and explained the true mission. There was a noticeable change in the store and the next two years were the most successful in recent history.

The response was “Sure, but I did not think about any employee leaving. The business was over 30 years old and very well established. All the records were in tact and everything looked good on paper.

An old quote states: “Good luck happens when preparedness meets opportunity.”

So possibly the reverse is true that “bad luck happens when no planning meets the unknown.”.

As I said, the leader owns the vision for the organization he or she leads. This vision can be lofty and challenging, a concept that is bold and far reaching. It is leaders with great visions who motivate others to succeed and accomplish great things. To create a vision statement, consider what you would ideally like to accomplish. Don’t worry about what stands in the way, what do you really want to do?.

This creates a working harder not smarter business environment. The business owners in the earlier story are both discouraged because what they believed to be some easy money now has become a daily effort just to keep the doors open.

Resource Author Francisco Rodriguez H.
Understand How to Make Money Without Money Today
Todo sobre Juegos para gente que le gusta jugar
Encontrar un Trabajo – Empleo es fácil si sabe dónde buscar