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© 1992-2013 by Smarter Solutions, Inc. Austin, TX www.smartersolutions.com
1
Integrated Enterprise Excellence
One-day Workshop
Smarter Solutions, Inc. www.smartersolutions.com [email protected]
512-918-0280
Referenced chapters, examples, and exercises are from
The Integrated Enterprise Excellence System: Volumes II
Forrest W. Breyfogle III, Bridgeway Books/Citius Publishing, 2008
Note
All contents of these materials are Copyright © 1992-2013 Smarter Solutions, Inc.. All rights reserved. The phrases 'smarter solutions', 'satellite-level', '30,000-foot-level' , '50-foot-level', Integrated enterprise excellence, IEE, and the logo featuring the words 'smarter solutions' and an upwardly moving arrow are each trademarks or registered trademarks of Smarter Solutions, Inc.
© 1992-2013 by Smarter Solutions, Inc. Austin, TX www.smartersolutions.com
2
Agenda
1. Business Management and Improvement Practices
Business Management Systems
Team Exercise: Assessment of current business management and improvement practices
2. Steps 1-2 of the 9-step Integrated Enterprise Excellence (IEE) Business Management System
Vision and mission
Value chain creation for integrating processes with performance measures
Issues with traditional performance metric reporting
An enhanced scorecard methodology with predictive scorecards
Team Exercise: Comparing performance reporting methodologies
Team Exercise: Creating an enterprise value chain with functional metrics
3. Steps 3-9 of the 9-step IEE Business Management System
Analysis of the enterprise
Establishment of financial goals for corporate and operational units
Creation of strategies
Identification of high-potential improvement areas & establishment of operational goals
Identification and execution of projects
Assessment of each project’s final impact on goals
Continuation of the gain
4. Linkage of IEE with Business Process Management (BPM)
Roadmap for IEE/BPM linkage
Team Exercise: Creation of a hospital’s business management & improvement system
5. Wrap-up
IEE business system checklist
Tabular comparison of systems, which illustrates the benefits of IEE
Business system maturity model
Individual Exercise: Determination of the maturity for your business management system
IEE evolution and its benefits
© Smarter Solutions, Inc. 1 www.SmarterSolutions.com
Integrated Enterprise ExcellenceOne-day Workshop
Forrest W. Breyfogle, IIISmarter Solutions IncSmarter Solutions, Inc.
www.SmarterSolutions.com
Learning Objectives
• Summarize problems with current business management systems.
• Describe issues with current process improvement efforts.
• Describe benefits of predictive scorecards.
• Describe an enhanced system where business metric improvement needs pull for projects that benefit the business as a whole.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 2
© Smarter Solutions, Inc. 2 www.SmarterSolutions.com
Reference Books
• Much of this workshop’s content is taken from the Integrated Enterprise Excellence five-book series.
References will be made during this training to book sections for • References will be made during this training to book sections for additional information about topics. – The primary workshop reference will be Integrated Enterprise Excellence
Volume II, Business Deployment: A Leaders’ Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard (IEE Vol. II)
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 3
Business Management Practices
• Management by objectives (from Wikipedia)– Management by objectives (MBO), also known as management by results
(MBR), is a process of defining objectives within an organization so that (MBR), is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them.
– The term "management by objectives" was first popularized by Peter Drucker in his 1954 book The Practice of Management.
– The essence of MBO is participative goal setting, choosing course of actions and decision making.
– An important part of the MBO is the measurement and the comparison of the
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 4
An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set.
– Ideally, when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.
© Smarter Solutions, Inc. 3 www.SmarterSolutions.com
Business Management Practices
• Exception management (from Wikipedia)– Exceptions are special cases that deviate from the normal behavior in a
business process and need to be cared for exceptionally, normally by human business process and need to be cared for exceptionally, normally by human intervention.
– Their cause might include: process deviation, malformed data, infrastructure or connectivity issues, poor quality business rules, etc.
– Exception management is the practice of investigating, resolving and handling such occurrences by using skilled staff and software tools.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 5
Business Management Practices
• Management by wandering around (from Wikipedia)– The term management by wandering around (MBWA), also management by
walking around, refers to a style of business management which involves walking around, refers to a style of business management which involves managers wandering around, in an unstructured manner, through the workplace(s), at random, to check with employees, or equipment, about the status of ongoing work.
– The emphasis is on the word wandering as an impromptu movement within a workplace, rather than a plan where employees expect a visit from managers at more systematic, pre-approved or scheduled times.
– The expected benefit is that a manager, by random sampling of events or
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 6
p g , y p gemployee discussions, is more likely to facilitate the productivity and total quality management of the organization, as compared to remaining in a specific office area and waiting for employees, or the delivery of status reports, to arrive there, as events warrant in the workplace.
© Smarter Solutions, Inc. 4 www.SmarterSolutions.com
Business Management Practices
• Quality Management System (QMS) [from Wikipedia]– QMS can be expressed as the organizational structure, procedures, processes
and resources needed to implement quality management. and resources needed to implement quality management.
– Early systems emphasized predictable outcomes of an industrial product production line, using simple statistics and random sampling.
– By the 20th century, labor inputs were typically the most costly inputs in most industrialized societies, so focus shifted to team cooperation and dynamics, especially the early signaling of problems via a continuous improvement cycle.
– In the 21st century, QMS has tended to converge with sustainability and transparency initiatives as both investor and customer satisfaction and
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 7
transparency initiatives, as both investor and customer satisfaction and perceived quality is increasingly tied to these factors.
– Of all QMS regimes, the ISO 9000 family of standards is probably the most widely implemented worldwide - the ISO 19011 audit regime applies to both, and deals with quality and sustainability and their integration.
Business Management Practices
• Total Quality Management (TQM) [from Wikipedia]– TQM is an integrative philosophy of management for continuously improving
the quality of products and processes. the quality of products and processes.
– TQM is based on the premise that the quality of products and processes is the responsibility of everyone involved with the creation or consumption of the products or services offered by an organization, requiring the involvement of management, workforce, suppliers, and customers, to meet or exceed customer expectations.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 8
© Smarter Solutions, Inc. 5 www.SmarterSolutions.com
Business Management Practices
• Business process management (BPM) [from Wikipedia]– BPM has been referred to as a "holistic management" approach to aligning an
organization's business processes with the wants and needs of clients. organization s business processes with the wants and needs of clients.
– It promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. BPM attempts to improve processes continuously. It can therefore be described as a "process optimization process."
– It is argued that BPM enables organizations to be more efficient, more effective and more capable of change than a functionally focused, traditional hierarchical management approach.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 9
g pp
– This foundation closely resembles other Total Quality Management or Continuous Improvement Process methodologies or approaches.
– BPM goes a step further by stating that this approach can be supported, or enabled, through technology to ensure the viability of the managerial approach in times of stress and change.
Team Exercise
• List the business management systems that your organizations are using. – List the positives and negatives of these systems
• Your executive management has concluded that the hospital where you are employed has excessive costs and unsatisfactory customer satisfaction. – You have a new position, Director of Business Operations
Systems and Improvement You report to the CEO
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 10
Systems and Improvement. You report to the CEO.
– Your team is to improve the hospital’s operations.• What improvement projects does your team suggest should be created?
• What else should be undertaken?
© Smarter Solutions, Inc. 6 www.SmarterSolutions.com
Team Exercise: Group Discussion
• Do you think that this situation could occur?
• Thoughts about typical business management systems that organizations are using; e.g., management by objective, management by exception, management by walking around, others?– What are the opportunities for improving these approaches?
• Share the name of one improvement project that your team
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 11
selected.– How did you select that project? Who owns completion?
– Do you think that the project could “fall off a process-improvement practitioner’s plate” because of other priorities?
Team Exercise: Group Discussion
• What else should be done when managing the hospital?
• Four years from now the company’s industry sector will experience hard times and even more financial pressures– Do you think that the process improvement function will survive
downsizing efforts?
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 12
© Smarter Solutions, Inc. 7 www.SmarterSolutions.com
Improvement Project Selection
• In process improvement programs, projects are typically selected from a ranked list of opportunities.– This push (using as a Lean term) for a project creation can lead to
significant resources being spent on the sub-optimization of processes, where the business as a whole does not benefit.
• What other methods have you encountered for selecting improvement projects?
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 13
Other Actions
• Organizational improvement efforts benefit if they are integrated with a predictive scorecard and
l ti ll /i ti l t t i l i t th t th analytically/innovatively strategic planning system so that the – organization can move toward achievement of the 3 Rs of business;
i.e., everyone doing the Right things, and doing them Right, at the Right time.
• This objective is achieved through the Integrated Enterprise Excellence (IEE) business system
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 14
Excellence (IEE) business system.
© Smarter Solutions, Inc. 8 www.SmarterSolutions.com
Graphic View on the 9 Steps to Excellence in Governance
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
3. Analyze enterprise.
4. Establish SMART
satellite-level metric goals.
5 Create
6. Identify high potential improvement 7. Identify and
8. Assess project's completion impact 9 Maintain the
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 15
5. Create strategies.
areas and establish related SMART 30,000-foot-level metric goals.
execute projects.
completion impact on enterprise
goals.
9. Maintain the gain.
Figure 4.7 Integrated Enterprise Excellence, Volume II, Copyright 2008
1. Describe vision and mission
Mission, vision and values outlines
• Who we are.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
• What we seek to achieve.
• When and how we want to achieve it.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 16
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
© Smarter Solutions, Inc. 9 www.SmarterSolutions.com
2. Create the Enterprise Value Chain
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
Basic “Business Value Chain” chart represents activities, without regard
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
to the organization chart
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 17
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
2. Create the Enterprise Value Chain
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.Basic value chain can be
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 18
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
Basic value chain can be expanded to include significant
inputs and outputs
© Smarter Solutions, Inc. 10 www.SmarterSolutions.com
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
2. Create the Enterprise Value Chain
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.Activities outside of the main flow
Activities outside of the
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 19
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
Activities outside of the main flow can be added as standalone units
outside of the main flow can be added as standalone
units
2. Create the Enterprise Value Chain
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 20
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
Shaded steps can be “drilled down”
© Smarter Solutions, Inc. 11 www.SmarterSolutions.com
Develop Product
Market Product Sell ProductProduce &
Deliver Product
Invoice and Collect
Payment
Report Financials
InformationHuman
Days Sales Outstanding
(DSO)
Percent Annualized
Gain in Gross Revenue
Gross Revenue
Defective Rate
Lead Time
Developed Product Design
Quality
Product Development
Lead Time
Work in Process (WIP)
Voice of the Customer
(VOC)
Labor
Quote Quality
RFQ Response Acceptance
Rate
Quote Response
Time
Net Profit Margins
Existing Customer Additions
New Customer Additions
Timely Inputs
Effective Inputs
2. Create the Enterprise Value Chain
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
Step 1 Step 2 Decision Step 3No
Step 4
Yes
End
Start
Information Technology
(IT)
Human Relations (HR)
Enterprise Process
Management (EPM)
On-time Delivery
Labor Relations Safety and
Environment
Legal Finance
Internal Process Reworks
Product Margins
TOC Throughput
Learning and Growth
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 21
Step 5 Step 7Step 6
Process Step 6
Start Step 6A Step 6B Step 6C End
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
Subprocess drilldown example
VOC step drill down Complaints
Audits
Receive complaint
Evaluation of complaint by Enterprise Process
Management Department
Document complaint in
data warehouse
Document results in data warehouse and
give feedback to person who complained
Weekly someone acts as a customer and documents
findings
Document results in data
warehouse
Develop Product
Market Product Sell ProductProduce &
Deliver Product
Invoice and Collect
Payment
Report Financials
Information Technology
(IT)Human Relations (HR)
Days Sales Outstanding
(DSO)
Percent Annualized
Gain in Gross Revenue
Gross Revenue
Defective Rate
Lead Time
Developed Product Design
Quality
Product Development
Lead Time
Work in Process (WIP)
On-time Delivery
Voice of the Customer
(VOC)
Labor Relations
Safety and Environment
Quote Quality
RFQ Response Acceptance
Rate
Internal Process Reworks
Quote Response
Time
Net Profit Margins
Existing Customer Additions
New Customer Additions
Timely Inputs
Customer Satisfaction
with Feedback
Client turnover
Surveys
Internal Survey
Conduct random survey to 1% of end customers, asking about
system problems and one suggestion what should done
differently to improve.
Document results in data
warehouse
g
Conducts a survey of 1/12 of the employees every month; e.g., as
described in chapter 43 of I l ti Si Si
Document results in data
warehouse
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 22
Enterprise Process
Management (EPM)
Legal Finance
Reworks
Product Margins
TOC Throughput
Learning and Growth
Data Warehouse
Monthly statistically analyze complaint, audits, survey, and
retention data
Report on findings, making suggestions, when appropriate, for
improvement
Monthly evaluate 30,000-foot-level reported defective and on-time delivery metrics, checking
for metric degradation and improvement project(s) status
Implementing Six Sigma
© Smarter Solutions, Inc. 12 www.SmarterSolutions.com
2. Create the Enterprise Value Chain
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
Produce and Deliver Products
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
Adding enterprise & operational level f t i
Lead Time
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 23
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
performance metrics completes value chain
Defective RateWIPOn-time Del.
After determining what to measure, need to then select performance reporting methodology. Vol II, Fig. 7.1
Performance Reporting: Table of Numbers
What conclusion would you make from this report?
Performance Meas ure F Y 2001
Ac tual
F Y 2002
Ac tual
F Y 2003
Ac tual
F Y 2003
Amended
F Y 2004
Amended
Perc entage of cus tomers s atis fied
with dis patch s taff 99.99% 100% 99.99% 98% 98%
Perc entage of priority one c alls
dis patched to field c rews within
80 minutes of rec eipt 99.99% 99% 99.99% 95% 95%
L abor cos t per cus tomer c all
taken in Dis patch Operations $4.20 $5.31 $5.09 $4.88 $5.09
Number of c alls taken through
Dis patch Operations 62,054 59,828 63,046 60,000 60,000
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 24
Number of priority one c alls
dis patched to field c rews 5,797 4,828 6,686 5,000 6,500
Number of work orders and
component parts (s egments )
c reated in databas e 8,226 4,724 7,742 5,500 6,700
Reproduced from Table 3.1 of Integrated Enterprise Excellence Volume II, Business Deployment: A Leaders’ Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard
© Smarter Solutions, Inc. 13 www.SmarterSolutions.com
Performance Reporting
• The next four slides will describe/compare the revenue-generated performance of five sales personnel.– Instead of sales people, what is something similar in your
organization that could be compared?
– What response instead of revenue could be compared?
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 25
Performance Reporting: Pie Chart
What conclusion would you make from this report?
12345
PersonSales
5
2
1
12345
PersonSales
2
15
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 26
4
3
4
3
Reproduced from Figure 3.1 of Integrated Enterprise Excellence Volume II, Business Deployment: A Leaders’ Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard
© Smarter Solutions, Inc. 14 www.SmarterSolutions.com
Performance Reporting: Line Chart
What conclusion would you make from this report?
12345
PersonSales
60
140
100
nue
(Tho
usan
d D
olla
rs)
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 27
20
Rev
en
Months
5 6 7 8 9 11 12 1 2 34
Reproduced from Figure 3.1 of Integrated Enterprise Excellence Volume II, Business Deployment: A Leaders’ Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard
Performance Reporting: Bar Chart
What conclusion would you make from this report?
100
200
400
300
enue
(T
hous
and
Dol
lars
)
500
600
12345
PersonSales
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 28
100
Rev
e
05 6 7 8 9 10 11 12 1 24 3
Months
Reproduced from Figure 3.2 of Integrated Enterprise Excellence Volume II, Business Deployment: A Leaders’ Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard
© Smarter Solutions, Inc. 15 www.SmarterSolutions.com
Performance Reporting: Bar Chart
What conclusion would you make from this report, where data are from several years?
200
400
300
ue (
Tho
usan
d D
olla
rs)
500
600
500
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 29
432143214321432143214321432143214321432143214321
100
Rev
enu
YearMonth 5 6 7 8 9 10 11 12 1 24 3
Reproduced from Figure 3.3 of Integrated Enterprise Excellence Volume II, Business Deployment: A Leaders’ Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard
What conclusion would you make from this report?Monthly SCORECARDBusiness Unit Name
Measurement Targets Aug'04 Sep'04 Oct'04 Nov'04 Dec'04 Jan'05 Feb'05 Mar'05 Apr'05 May'05 Jun'05 Jul'05CUSTOMERCustomer Metric A 0.63574 0.653576 0.660404 0.732996 0.62521 0.708566 0.641873 0.727115 0.687201 0.6123 0.670894 0.6341Yellow if equal to or higher than 0.720 0.720 0.720 0.720 0.720 0.720 0.720 0.720 0.720 0.720 0.720 0.720 0.720
Performance Reporting: Stoplights
Green if equal to or higher than 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750Customer Metric B 1.866044 1.804823 1.777056 1.87373 1.791988 1.826504 1.824634 1.799849 1.822007 1.838969 1.87088 1.893155Yellow if equal to or higher than 1.830 1.830 1.830 1.830 1.830 1.830 1.830 1.830 1.830 1.830 1.830 1.830 1.830Green if equal to or higher than 1.860 1.860 1.860 1.860 1.860 1.860 1.860 1.860 1.860 1.860 1.860 1.860 1.860Customer Metric C 0.82475 0.730724 0.627179 0.728212 0.751174 0.801946 0.780248 0.761874 0.68133 0.790902 0.728168 0.790485Yellow if equal to or higher than 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750Green if equal to or higher than 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780
FINANCEFinance Metric A 3.387525 2.965966 3.042505 2.891057 3.485847 2.867981 2.764183 3.297147 3.301612 2.892969 2.737161 3.0936Yellow if equal to or higher than 3.05 3.05 3.05 3.05 3.05 3.05 3.05 3.05 3.05 3.05 3.05 3.05 3.05Green if equal to or higher than 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1Finance Metric B 2.09819 2.254758 2.345674 2.207099 2.316309 2.214396 2.156223 2.493305 2.509988 2.163489 2.168469 2.288786Yellow if equal to or higher than 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2Green if equal to or higher than 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25Finance Metric C 0.762611 0.958071 1.051227 0.867969 1.158351 0.82278 0.800541 0.989747 0.980718 0.611179 0.789868 1.035084Yellow if equal to or higher than 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9Green if equal to or higher than 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95Finance Metric H 0.222716 0.480099 0.296397 0.203 0.3541 0.2326 0.1693 0.4552 0.2278 0.194 0.288 0.321Yellow if equal to or higher than 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21Green if equal to or higher than 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25Finance Metric I 0.490024 0.27568 0.190908 0.357 0.5284 0.4058 0.3391 0.3347 0.3247 0.327 0.286 0.383Yellow if equal to or higher than 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3Green if equal to or higher than 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35
INTERNAL BUSINESS OPERATIONSIBO Metric A 1.7693 1.73499 1.80064 1.76888 1.76068 1.79877 1.863956 1.862206 1.829389 1.875557 1.741041 1.69758Yellow if equal to or higher than 1.70 1.70 1.70 1.70 1.70 1.70 1.70 1.70 1.70 1.70 1.70 1.70 1.70Green if equal to or higher than 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73IBO Metric B 0.20531 0.18053 0.184817 0.16204 0.18 0.178 0.202 0.205 0.176 0.226 0.201 0.197Yellow if equal to or less than 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25Green if equal to or less than 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22IBO Metric C 0.427692 0.505666 0.504354 0.568529 0.44906 0.464186 0.446241 0.422419 0.445758 0.475769 0.340339 0.366324Yellow if equal to or less than 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26Green if equal to or less than 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21IBO Metric D 2.66634 2.64814 2.69324 2.67166 2.68 2.66 2.67 2.68 2.65 2.67 2.67 2.69Yellow if equal to or less than 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60Green if equal to or less than 2 58 2 58 2 58 2 58 2 58 2 58 2 58 2 58 2 58 2 58 2 58 2 58 2 58
Let’s examine a different set
of data.
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Green if equal to or less than 2.58 2.58 2.58 2.58 2.58 2.58 2.58 2.58 2.58 2.58 2.58 2.58 2.58IBO Metric F 0.113318 0.157456 0.163175 0.146534 0.113 0.143 0.143 0.173 0.143 0.163 0.133 0.143Yellow if equal to or less than 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086Green if equal to or less than 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068IBO Metric G 0.043949 0.078984 0.051823 0.055083 0.110424 0.068515 0.080985 0.076333 0.07306 0.077379 0.103885 0.069867Yellow if equal to or less than 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06Green if equal to or less than 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05IBO Metric H 1.222222 1.222222 1.166667 1 1 1 1 1.166667 1.333333 1.25 1.230769 1.266667Yellow if equal to or higher than 1.33 1.33 1.33 1.33 1.33 1.33 1.33 1.33 1.33 1.33 1.33 1.33 1.33Green if equal to or higher than 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45
LEARNING AND GROWTHL&G Metric A 4.47048 5.23666 4.17365 4.57158 4.54306 4.31449 4.67242 3.67574 4.94651 3.57205 4.92629 4.55868Yellow if equal to or less than 5 5 5 5 5 5 5 5 5 5 5 5 5Green if equal to or less than 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5L&G Metric B 68.1916 69.643 57.0598 62.4947 59.6528 74.1863 77.7315 54.8459 57.6235 83.5998 66.4914 54.2673Yellow if equal to or higher than 65 65 65 65 65 65 65 65 65 65 65 65 65Green if equal to or higher than 75 75 75 75 75 75 75 75 75 75 75 75 75
Reproduced from Table 3.5 of Integrated Enterprise Excellence Volume II, Business Deployment: A Leaders’ Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard
© Smarter Solutions, Inc. 16 www.SmarterSolutions.com
Performance Reporting: Stoplights
Red/Yellow/Green visuals are the most popular concept in scorecards because of the stoplight relationship.
– Only compares the instantaneous performance to a set goal
– No insight into trends or historical performance
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 31
historical performance
Graphics found at http://download.oracle.com/docs/cd/E15051_01/web.1111/b31973/dv_intro.htm
If the goal is not a specification, it is often ignored. Is that a good behavior?
Performance Reporting: Balanced Scorecard
Is your organization using the Balanced Scorecard?
Vision and Strategy
Financials
ProcessesCustomer
Balanced Scorecard
10 0
CUSTOMER SATISFACTION 30
PROFIT IN %
30
PROFIT IN %
30
PROFIT IN %
Each Category has:
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 32
Learning
0
QUA
LITY
SPEE
D
COU
RTES
Y
COMP
ETEN
CE
COM
MUNI
CATIO
N
HEL
PFU
LNES
S
!
0
10
20
1 2 3 4 5 6 7 8 9 10 11 12
!0
10
20
1 2 3 4 5 6 7 8 9 10 11 12
0
10
20
1 2 3 4 5 6 7 8 9 10 11 12
!
Each Category has:Objectives, measures, targets, and initiatives
Reproduced from Table 3.5 of Integrated Enterprise Excellence Volume II, Business Deployment: A Leaders’ Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard
© Smarter Solutions, Inc. 17 www.SmarterSolutions.com
Performance Reporting: Balanced Scorecard
Thoughts about the BSC approach methodology?
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 33
Vol. II, Fig. 3.6
Performance Reporting: AlternativesTabular Reporting
Performance Meas ure F Y 2001
Ac tual
FY 2002
Ac tual
F Y 2003
Ac tual
FY 2003
Amended
F Y 2004
Amended
Perc entage of cus tomers s atis fied
with dis patch s taff 99.99% 100% 99.99% 98% 98%
Perc entage of priority one c alls
dis patched to field c rews within
80 minutes of rec eipt99.99% 99% 99.99% 95% 95%
Financials
Balanced Scorecard
Classic Bar Charts
80 minutes of rec eipt
L abor cos t per cus tomer c all
taken in Dis patch Operations $4.20 $5.31 $5.09 $4.88 $5.09
Number of c alls taken through
Dis patch Operations 62,054 59,828 63,046 60,000 60,000
Number of priority one c alls
dis patched to field c rews 5,797 4,828 6,686 5,000 6,500
Number of work orders and
component parts (s egments )
c reated in databas e 8,226 4,724 7,742 5,500 6,700
600000
500000
400000
llars
)
12345
PersonSales
Vision and Strategy
Processes
Learning
Customer
0
10 0
QUAL
ITY
SPEE
D
COUR
TESY
COM
PETE
NCE
COMM
UNIC
ATIO
N
HELP
FULN
ESS
CUSTOMER SATISFACTION
!
0
10
20
30
1 2 3 4 5 6 7 8 9 10 11 12
PROFIT IN %
!0
10
20
30
1 2 3 4 5 6 7 8 9 10 11 12
PROFIT IN %
0
10
20
30
1 2 3 4 5 6 7 8 9 10 11 12
PROFIT IN %
!
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 34
Month 321121110987654
300000
200000
100000
0
Rev
enue
(D
ol
Targets Aug'04 Sep'04 Oct'04 Nov'04 Dec'04 Jan'05 Feb'05 Mar'05 Apr'05 May'05 Jun'05 Jul'05 Aug'05Finance Metric B 2.10 2.25 2.35 2.21 2.32 2.21 2.16 2.49 2.51 2.16 2.17 2.29 2.14Yellow if equal to or higher than 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20Green if equal to or higher than 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25
What other approach might we use to present data?
© Smarter Solutions, Inc. 18 www.SmarterSolutions.com
Process Tracking and Performance Metrics: Issues and Resolution
TYPICAL METRICS
• Based on fiscal yearBased on fiscal year
• Unrelated to improvement system
• Point to point comparisons
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 35
Process Tracking and Performance Metrics: Issues and Resolution
However …
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 36
Xs Xs Xs
Reproduced from Figure 4.8 of Integrated Enterprise Excellence Volume II, Business Deployment: A Leaders’ Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard
© Smarter Solutions, Inc. 19 www.SmarterSolutions.com
Process Tracking and Performance Metrics: Issues and Resolution
EFFECTIVE METRICS• View the enterprise as a system of processes p y p• Acknowledge the effect of variability• Support long-lasting systematic process
improvement
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 37
Let’s next examine how we can create effective metrics.
Monthly SCORECARDBusiness Unit Name
Measurement Targets Aug'04 Sep'04 Oct'04 Nov'04 Dec'04 Jan'05 Feb'05 Mar'05 Apr'05 May'05 Jun'05 Jul'05CUSTOMERCustomer Metric A 0.63574 0.653576 0.660404 0.732996 0.62521 0.708566 0.641873 0.727115 0.687201 0.6123 0.670894 0.6341Yellow if equal to or higher than 0.720 0.720 0.720 0.720 0.720 0.720 0.720 0.720 0.720 0.720 0.720 0.720 0.720Green if equal to or higher than 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750Customer Metric B 1.866044 1.804823 1.777056 1.87373 1.791988 1.826504 1.824634 1.799849 1.822007 1.838969 1.87088 1.893155Yellow if equal to or higher than 1.830 1.830 1.830 1.830 1.830 1.830 1.830 1.830 1.830 1.830 1.830 1.830 1.830Green if equal to or higher than 1.860 1.860 1.860 1.860 1.860 1.860 1.860 1.860 1.860 1.860 1.860 1.860 1.860Customer Metric C 0.82475 0.730724 0.627179 0.728212 0.751174 0.801946 0.780248 0.761874 0.68133 0.790902 0.728168 0.790485Yellow if equal to or higher than 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750Green if equal to or higher than 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780
FINANCEFinance Metric A 3.387525 2.965966 3.042505 2.891057 3.485847 2.867981 2.764183 3.297147 3.301612 2.892969 2.737161 3.0936Yellow if equal to or higher than 3.05 3.05 3.05 3.05 3.05 3.05 3.05 3.05 3.05 3.05 3.05 3.05 3.05Green if equal to or higher than 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1Finance Metric B 2.09819 2.254758 2.345674 2.207099 2.316309 2.214396 2.156223 2.493305 2.509988 2.163489 2.168469 2.288786Yellow if equal to or higher than 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2Green if equal to or higher than 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25Finance Metric C 0.762611 0.958071 1.051227 0.867969 1.158351 0.82278 0.800541 0.989747 0.980718 0.611179 0.789868 1.035084Yellow if equal to or higher than 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9Green if equal to or higher than 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95 0.95Finance Metric H 0.222716 0.480099 0.296397 0.203 0.3541 0.2326 0.1693 0.4552 0.2278 0.194 0.288 0.321Yellow if equal to or higher than 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21Green if equal to or higher than 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25Finance Metric I 0.490024 0.27568 0.190908 0.357 0.5284 0.4058 0.3391 0.3347 0.3247 0.327 0.286 0.383Yellow if equal to or higher than 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3Green if equal to or higher than 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35
Let’s examine Finance Metric B
Stoplight Scorecard
q g
INTERNAL BUSINESS OPERATIONSIBO Metric A 1.7693 1.73499 1.80064 1.76888 1.76068 1.79877 1.863956 1.862206 1.829389 1.875557 1.741041 1.69758Yellow if equal to or higher than 1.70 1.70 1.70 1.70 1.70 1.70 1.70 1.70 1.70 1.70 1.70 1.70 1.70Green if equal to or higher than 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73IBO Metric B 0.20531 0.18053 0.184817 0.16204 0.18 0.178 0.202 0.205 0.176 0.226 0.201 0.197Yellow if equal to or less than 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25Green if equal to or less than 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22IBO Metric C 0.427692 0.505666 0.504354 0.568529 0.44906 0.464186 0.446241 0.422419 0.445758 0.475769 0.340339 0.366324Yellow if equal to or less than 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26Green if equal to or less than 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21IBO Metric D 2.66634 2.64814 2.69324 2.67166 2.68 2.66 2.67 2.68 2.65 2.67 2.67 2.69Yellow if equal to or less than 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60 2.60Green if equal to or less than 2.58 2.58 2.58 2.58 2.58 2.58 2.58 2.58 2.58 2.58 2.58 2.58 2.58IBO Metric F 0.113318 0.157456 0.163175 0.146534 0.113 0.143 0.143 0.173 0.143 0.163 0.133 0.143Yellow if equal to or less than 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086Green if equal to or less than 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068IBO Metric G 0.043949 0.078984 0.051823 0.055083 0.110424 0.068515 0.080985 0.076333 0.07306 0.077379 0.103885 0.069867Yellow if equal to or less than 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06Green if equal to or less than 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05IBO Metric H 1.222222 1.222222 1.166667 1 1 1 1 1.166667 1.333333 1.25 1.230769 1.266667Yellow if equal to or higher than 1.33 1.33 1.33 1.33 1.33 1.33 1.33 1.33 1.33 1.33 1.33 1.33 1.33Green if equal to or higher than 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45
LEARNING AND GROWTHL&G Metric A 4.47048 5.23666 4.17365 4.57158 4.54306 4.31449 4.67242 3.67574 4.94651 3.57205 4.92629 4.55868Yellow if equal to or less than 5 5 5 5 5 5 5 5 5 5 5 5 5Green if equal to or less than 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5L&G Metric B 68.1916 69.643 57.0598 62.4947 59.6528 74.1863 77.7315 54.8459 57.6235 83.5998 66.4914 54.2673Yellow if equal to or higher than 65 65 65 65 65 65 65 65 65 65 65 65 65Green if equal to or higher than 75 75 75 75 75 75 75 75 75 75 75 75 75
Let’s examine this corporation’s red-yellow-green
scorecard
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 38
33% red & 50% green?Special or Common Cause?
Green if equal to or higher than 3.1 3.1 3.1 3.1 3.1 3.1Finance Metric B 2.09819 2.254758 2.345674 2.207099 2.316309Yellow if equal to or higher than 2.2 2.2 2.2 2.2 2.2 2.2Green if equal to or higher than 2.25 2.25 2.25 2.25 2.25 2.25
C 3.1 3.1 3.1 3.1 3.1 3.1 3.12.214396 2.156223 2.493305 2.509988 2.163489 2.168469 2.288786
2.2 2.2 2.2 2.2 2.2 2.2 2.22.25 2.25 2.25 2.25 2.25 2.25 2.25
0 82278 0 800541 0 989747 0 980718 0 611179 0 789868 1 035084
© Smarter Solutions, Inc. 20 www.SmarterSolutions.com
Traditional Performance Reporting Example – Red-Yellow-Green Scorecard
Targets Aug'04 Sep'04 Oct'04 Nov'04 Dec'04 Jan'05 Feb'05 Mar'05 Apr'05 May'05 Jun'05 Jul'05 Aug'05Finance Metric B 2.10 2.25 2.35 2.21 2.32 2.21 2.16 2.49 2.51 2.16 2.17 2.29 2.14Yellow if equal to or higher than 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20Green if equal to or higher than 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25
TRADITIONAL SCORECARD EXCERPT
Building a Better Scorecard
2.7
2.6
2.5
2.4
2.3
2.2
2.1
2.0
Res
pons
e
_X=2.2583
UCL=2.6192
Individuals Control Chart99
95
90
80
70
605040
30
20
10
5
Perc
ent
32.657
Normal Probability Plot
IEE Improved Reporting for Process Assessment and Improvement
q g
INDIVIDUALS CONTROL CHART
The metric is colored red when a goal is not being met and corrective action needs to be taken.
This can result in counter‐productive initiatives, 24/7 firefighting, the blame game, and proliferation of fanciful stories about why goals
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 39
4
2.2
Histogram
Aug'0
5Ju
l'05
Jun'05
May'05
Apr'0
5
Mar'05
Feb'0
5Jan
'05
Dec'0
4
Nov'0
4Oct'
04
Sep'0
4
Aug'0
4
1.9
Date
LCL=1.89742.62.52.42.32.22.12.01.9
1
Response
2.2
blame game, and proliferation of fanciful stories about why goals weren’t met.
Most importantly, it tells us nothing about what to expect in the future! Vol. II,
Example 3.3
Building a Better Scorecard
Targets Aug'04 Sep'04 Oct'04 Nov'04 Dec'04 Jan'05 Feb'05 Mar'05 Apr'05 May'05 Jun'05 Jul'05 Aug'05Finance Metric B 2.10 2.25 2.35 2.21 2.32 2.21 2.16 2.49 2.51 2.16 2.17 2.29 2.14Yellow if equal to or higher than 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20Green if equal to or higher than 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25
Traditional Performance Reporting Example – Red-Yellow-Green Scorecard
1
Integrated Enterprise Excellence (IEE) Scorecard System
Process is predictable
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 40
So what do we predict?
If there is a recent region of stability, we can say that the process is predictable.
© Smarter Solutions, Inc. 21 www.SmarterSolutions.com
Building a Better Scorecard
Individuals Control Chart
C
LCL=1.90
UCL= 2.62
1.8
2.0
2.2
2.4
2.6
Mean = 2.26
Res
pons
e
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 41
If a process is predictable, we can consider that data from the recent region of stability
are a random sample of the future.
Observation2 41 3 5 6 7 8 9 10 11 12 13
• The red criterion, of less than 2.2, can be applied to the histogram for
4
2.2
Normal Histogram of Response
Histogram
2.23
4
ency 2.2
Histogram
Building a Better Scorecard
– estimation of the percentage below 2.2;
– however, it is difficult to estimate from this graphic.
1
2
Fre
que
02.0 2.1 2.2 2.3 2.4 2.5
Response
• A probability plot is a better approach since – if the sample data are from a predictable
2.0 2.1 2.2 2.3 2.4 2.5Response
t
99
95
80
Normal Probability PlotNormal Probability Plot
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 42
• Conclude: Approx. 32.6% is below 2.2.
if the sample data are from a predictable process, this tool can provide a long-term performance estimate.
2.2
32.657Per
cen
2.0 2.1 2.2 2.3 2.4 2.5 2.61.9Response
80
5030
10
1
2.2
32.6
1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.6Response
© Smarter Solutions, Inc. 22 www.SmarterSolutions.com
Targets Aug'04 Sep'04 Oct'04 Nov'04 Dec'04 Jan'05 Feb'05 Mar'05 Apr'05 May'05 Jun'05 Jul'05 Aug'05Finance Metric B 2.10 2.25 2.35 2.21 2.32 2.21 2.16 2.49 2.51 2.16 2.17 2.29 2.14Yellow if equal to or higher than 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20Green if equal to or higher than 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25
Traditional Performance Reporting Example – Red-Yellow-Green Scorecard
Building a Better Scorecard
1
Individuals Control Chart
Res
pons
e
LCL=1.90
UCL= 2.62
1 8
2.0
2.2
2.4
2.6
Mean = 2.26
2
2.2
32.657Pe
rce
nt
99
95
80
5030
10
1
2.2
32.6
Normal Probability Plot
Integrated Enterprise Excellence (IEE) Scorecard System
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 43
Observation
1.82 41 3 5 6 7 8 9 10 11 12 13
2.0 2.1 2.2 2.3 2.4 2.5 2.61.9Response
1
The probability plot provides process variability insight, which Edwards Deming said was important.
IEE reporting assesses predictability & then if the process is predictable provides a prediction statement.
Building a Better Scorecard
Targets Aug'04 Sep'04 Oct'04 Nov'04 Dec'04 Jan'05 Feb'05 Mar'05 Apr'05 May'05 Jun'05 Jul'05 Aug'05Finance Metric B 2.10 2.25 2.35 2.21 2.32 2.21 2.16 2.49 2.51 2.16 2.17 2.29 2.14Yellow if equal to or higher than 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20 2.20Green if equal to or higher than 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25
Traditional Performance Reporting Example – Red-Yellow-Green Scorecard
1
Individuals Control Chart
Res
pons
e
LCL=1.90
UCL= 2.62
1 8
2.0
2.2
2.4
2.6
Mean = 2.26
2
2.2
32.657Pe
rce
nt
99
95
80
5030
10
1
2.2
32.6
Normal Probability Plot
Integrated Enterprise Excellence (IEE) Scorecard System
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 44
Observation
1.82 41 3 5 6 7 8 9 10 11 12 13
2.0 2.1 2.2 2.3 2.4 2.5 2.61.9Response
1
Predictable process with an approximate non-conformance rate of 32.6%
3
Reproduced from Table 3.5 of Integrated Enterprise Excellence Volume II, Business Deployment: A Leaders’ Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard
© Smarter Solutions, Inc. 23 www.SmarterSolutions.com
• IEE Enterprise Performance Reporting System (EPRS) scorecard report-out format
Building a Better Scorecard
IEE Scorecard
2.62.42.22.0
99
95
80
50
20
5
1
l
Per
cent
2.2
32.657
Mean 2.258StDev 0.1297N 13AD 0.531P-Value 0.141
Aug'0
5Ju
l'05
Jun'0
5
May'05
Apr'0
5
Mar'05
Feb'0
5
Jan'0
5
Dec'0
4
Nov'0
4
Oct'04
Sep'0
4
Aug'0
4
2.6
2.4
2.2
2.0
Indi
vidu
al V
alue
_X=2.2583
UCL=2.6192
LCL=1.8974
Probability plotNormal
I-chart
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 45
The process is predictable since the last process changeThe process estimates about 32.657% non-conformance rate
Process valuesDate
Reproduced from Table 3.5 of Integrated Enterprise Excellence Volume II, Business Deployment: A Leaders’ Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard
Traditional Performance ReportingPie Chart
12345
PersonSales
5
11234
PersonSales
15
12345
PersonSales
140
100
san
d D
olla
rs)
Line Chart
Sales data presented in
different formats
Bar Charts
600000
500000
12345
PersonSales
4
3
2
452
4
3
20
60
Rev
enu
e (T
hou
Months
5 6 7 8 9 11 12 1 2 34
400nd D
olla
rs)
500
600
500
Bar Charts
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 46
Month 321121110987654
400000
300000
200000
100000
0
Rev
enue
(D
olla
rs)
432143214321432143214321432143214321432143214321
100
200
400
300
Rev
enue
(Tho
usa
n
YearMonth 5 6 7 8 9 10 11 12 1 24 3
© Smarter Solutions, Inc. 24 www.SmarterSolutions.com
IEE 30,000-foot-level Scorecard
IEE Scorecard for Sales
120000
100000
n
UCL=11404660000
iati
on
UCL=66576
I-chart of Mean I-chart of Std. Deviation
Sales data presented in IEE format (before
change)
99.9
99
90
50rcen
t
90
50
Mean 71884StDev 32910N 170AD 0.520P-Value 0.184
343128252219161310741
80000
60000
40000
Subgroup Period
Su
bg
rou
p M
ea
_X=71884
LCL=29721
343128252219161310741
45000
30000
15000
0
Subgroup Period
Su
bgr
oup
Std
. Dev
_X=31664
LCL=-3249
Probability plotNormal
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 47
The process is predictable between subgroups and within subgroupsThe est. median is 71883. with 80% of the occurrences from 29708. to 114059
200000150000100000500000
10
1
0.1
Data values
Pe
1140
59
7188
4
2970
8
10
IEE 30,000-foot-level Scorecard
IEE Scorecard for Sales
120000
100000
n
UCL=11404660000
iati
on
UCL=66576
I-chart of Mean I-chart of Std. Deviation
Sales data presented in IEE format (before
change)
99.9
99
90
50rcen
t
90
50
Mean 71884StDev 32910N 170AD 0.520P-Value 0.184
107411074110741
80000
60000
40000
Subgroup Period
Su
bg
rou
p M
ea
_X=71884
LCL=29721
107411074110741
45000
30000
15000
0
Subgroup Period
Su
bgr
oup
Std
. Dev
_X=31664
LCL=-3249
160000
120000
80000
ta v
alu
es
Probability plotNormal
Individual Value Plot of Sales
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 48
The process is predictable between subgroups and within subgroupsThe est. median is 71883. with 80% of the occurrences from 29708. to 114059
200000150000100000500000
10
1
0.1
Data values
Pe
1140
59
7188
4
2970
8
10
54321
40000
0
categories
Da
© Smarter Solutions, Inc. 25 www.SmarterSolutions.com
IEE 30,000-foot-level Scorecard
IEE Scorecard for Sales
150000
n
UCL=136782
1(Baseline) 2(New)
60000
atio
n
1(Baseline) 2(New)
I-chart of Mean I-chart of Std. Deviation
Sales data presented in IEE
format (after change)
99
90
50rcen
t
90
50
Mean 103046StDev 20979N 25AD 0.798P-Value 0.033
37332925211713951
100000
50000
Subgroup Period
Su
bgr
oup
Mea
n
_X=103046
LCL=69311
37332925211713951
45000
30000
15000
0
Subgroup Period
Su
bg
rou
p S
td. D
evia
_X=19362
UCL=41818
LCL=-3094
Probability plotNormal
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 49Vol. II, Figure 9.6
The process is predictable since the last process changeThe est. median is 103046 with 80% of the occurrences from 76160. to 129932
1500001250001000007500050000
10
1
Data values in current stage
Pe
1299
32
1030
46
7616
0 10
IEE 30,000-foot-level Scorecard
IEE Scorecard for Sales
150000
n
UCL=136782
1(Baseline) 2(New)
60000
atio
n
1(Baseline) 2(New)
I-chart of Mean I-chart of Std. Deviation
Sales data presented in IEE
format (after change)
99
90
50rcen
t
90
50
Mean 103046StDev 20979N 25AD 0.798P-Value 0.033
1951951951
100000
50000
Subgroup Period
Su
bgr
oup
Mea
n
_X=103046
LCL=69311
1951951951
45000
30000
15000
0
Subgroup Period
Su
bg
rou
p S
td. D
evia
_X=19362
UCL=41818
LCL=-3094
150000
125000
100000
s in
cu
rren
t st
age
Probability plotNormal
Individual Value Plot of Sales
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 50
The process is predictable since the last process changeThe est. median is 103046 with 80% of the occurrences from 76160. to 129932
1500001250001000007500050000
10
1
Data values in current stage
Pe
1299
32
1030
46
7616
0 10
54321
75000
50000
categories
Dat
a va
lues
© Smarter Solutions, Inc. 26 www.SmarterSolutions.com
Team Exercise: Comparing Performance Reporting Methodologies
• Describe the differences in reporting methodologies.
• What are the benefits of using predictive scorecards?
Pie Chart
12345
PersonSales
5
4
3
2
112345
PersonSales
2
15
4
3
12345
PersonSales
20
60
140
100R
eve
nu
e (T
ho
usa
nd D
olla
rs)
Months
5 6 7 8 9 11 12 1 2 34
Line Chart
IEE Scorecard for Sales
1951951951
150000
100000
50000
Subgroup Period
Su
bgro
up
Mea
n
_X=103046
UCL=136782
LCL=69311
1(Baseline) 2(New)
1951951951
60000
45000
30000
15000
0
Subgroup Period
Su
bg
rou
p S
td. D
evia
tion
_X=19362
UCL=41818
LCL=-3094
1(Baseline) 2(New)
I-chart of Mean I-chart of Std. Deviation
Traditional Performance Reporting IEE Scorecarding
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 51
Bar Charts
Month 321121110987654
600000
500000
400000
300000
200000
100000
0
Rev
enue
(D
olla
rs)
12345
PersonSales
432143214321432143214321432143214321432143214321
100
200
400
300
Rev
enue
(Tho
usa
nd D
olla
rs)
500
600
Year
500
Month 5 6 7 8 9 10 11 12 1 24 3
Bar Charts
The process is predictable since the last process changeThe est. median is 103046 with 80% of the occurrences from 76160. to 129932
1500001250001000007500050000
99
90
50
10
1
Data values in current stage
Per
cen
t
1299
32
90
1030
46
50
7616
0 10
Mean 103046StDev 20979N 25AD 0.798P-Value 0.033
54321
150000
125000
100000
75000
50000
categories
Dat
a va
lues
in c
urr
ent
stag
e
Probability plotNormal
Individual Value Plot of Sales
2. Create the Enterprise Value Chain1. Describe vision and
mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
Produce and Deliver Products
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
The resulting value chain Lead Time
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 52
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
value chain functional linkages
bridging silos
Lead Time
Defective Rate
WIP
On-time Del.Figure 7.1 Integrated Enterprise
Excellence, Volume III, Copyright 2008
© Smarter Solutions, Inc. 27 www.SmarterSolutions.com
2. Create the Enterprise Value Chain• Stoplight Scorecard data linkage with IEE value
chainIEE S d
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
Develop Product
Market Product Sell ProductProduce &
Deliver Product
Invoice and Collect
Payment
Report Financials
Information Technology
(IT)
Human Relations (HR)
Enterprise Process
Management (EPM)
Days Sales Outstanding
(DSO)
Percent Annualized
Gain in Gross Revenue
Gross Revenue
Defective Rate
Lead Time
Developed Product Design
Quality
Product Development
Lead Time
Work in Process (WIP)
On-time Delivery
Voice of the Customer
(VOC)
Labor Relations Safety and
Environment
Legal Finance
Quote Quality
RFQ Response Acceptance
Rate
Internal Process Reworks
Product Margins
Quote Response
Time
TOC Throughput
Net Profit Margins
Existing Customer Additions
New Customer Additions
Timely Inputs
Effective Inputs
Learning and Growth
IEE Scorecard
99
95
80
50
20
5
Per
cent
32.657
Mean 2.258StDev 0.1297N 13AD 0.531P-Value 0.141
2.6
2.4
2.2
2.0
Indi
vidu
al V
alue
_X=2.2583
UCL=2.6192
LCL=1.8974
Probability plotNormal
I-chart 3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 53
The process is predictable since the last process changeThe process estimates about 32.657% non-conformance rate
2.62.42.22.01
Process values
2.2
Aug'0
5Ju
l'05
Jun'0
5
May'05
Apr'0
5
Mar'05
Feb'0
5
Jan'0
5
Dec'0
4
Nov'0
4
Oct'04
Sep'0
4
Aug'0
4
Date
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
• Together we will create the high-level functional steps of a hospital’s enterprise value chain.
Team Exercise: Creating an Enterprise Value Chain with Functional Metrics
• We will then break into groups where each team is assigned a function.
• Each team is to note on a flipchart – Performance metrics for their function.
– A comparison between this metric selection approach and others
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 54
that you have seen.
• Report out to the class.
© Smarter Solutions, Inc. 28 www.SmarterSolutions.com
3. Analyze the Enterprise
• Analyze the enterprise as a whole, looking for
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
– constraints
– defective reduction opportunities
– waste
– speed to market
– other restraints
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 55
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
4. Establish Financial Goals for Corporate and Operational Units• Satellite-level metric goals (e.g., profit
margins and revenue growth) are to be SMART S ifi M bl
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
SMART: Specific, Measurable, Actionable, Relevant, and Time-based.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 56
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
© Smarter Solutions, Inc. 29 www.SmarterSolutions.com
5. Create Strategies
• Develop strategies to improve performance when satellite-level metrics are not achieving goals
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.are not achieving goals.
– Focus on creating strategies that are specific and benefit the big picture.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 57
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
6. Indentify High-Potential Imp. Areas & Establish Oper. Goals
• Identify high potential target areas – Set 30,000-foot-level (operational) metric performance
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
goals
– Other business area 30,000-foot-level metrics are not to degrade from current performance levels.
• Things to consider: – Performance of value-chain metrics
– Statistical analysis of value-chain drill downs
Competitive pressures
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 58
– Competitive pressures
– Business environment
– Bottle necks
– New business opportunities
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
© Smarter Solutions, Inc. 30 www.SmarterSolutions.com
6. Indentify High-Potential Imp. Areas & Establish Oper. Goals
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
Business Goal Strategies High Potential Areas Projects
Improve marketing ff ti
Improve product group C h i
Step 4 Step 5 Step 6 Step 7
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
Increase monthly profit
margins by 2% in 10 months.
Increase monthly gross revenue by 8% in 10 months.
Reduce DSO mean by 3
days in 7 mo.
Reduce DSO of product group D and leverage benefits to
other business groups.
effectiveness by 15% in 10
mo.
C search engine ranking by 25%.
Improve RFQ acceptance
rate by improving
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 59
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
p gquote response time so that all
quotes are completed in
14 days. To be completed in 5
mo.
Increase TOC
Developed in Example 12.1
Figure 12.1 Integrated Enterprise Excellence,
Volume II, Copyright 2008
Enterprise Improvement Plan (EIP)
7. Identify and Execute Projects
• Project execution could follow one of the following methodologies:
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
– Special cause condition (solution known)• Just do it
– Special cause condition (solution unknown)• Root Cause Analysis: Fault tree analysis
– Common cause condition (solution known)• Lean Project: 5S, kaizen, value stream map
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 60
j , , p(VSM), low hanging fruit
– Common cause condition (solution unknown) • Plan-Do-Check-Act (PDCA): Continuous
improvement
• Lean Six Sigma DMAIC or DMADV roadmap
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
© Smarter Solutions, Inc. 31 www.SmarterSolutions.com
7. Identify and Execute Projects
• A Lean Six Sigma project execution roadmap that truly integrates Lean and Six Si t l i
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
Sigma tools is:3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
D M A I C
Plan Project Wisdomof theMSABaseline Lean
ControlAnalyzeDefine Measure Improve
D M A I C
Plan Project Wisdomof theMSABaseline Lean
ControlAnalyzeDefine Measure Improve
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 61
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
PROCESS IMPROVEMENT PROJECT: P-DMAIC
Plan Projectand Metrics of the
OrganizationMSABaseline
ProjectLean
Assessment
PROCESS IMPROVEMENT PROJECT: P-DMAIC
Plan Projectand Metrics of the
OrganizationMSABaseline
ProjectLean
Assessment
From Figure 2.1, Integrated Enterprise Excellence Volume III, Improvement Project Execution: A Management and Black Belt Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard, Copyright 2008
8. Assess Each Project’s Final Impact on Goals• Each project should be judged against
how well it positively impacted the 30 000 f t l l t i f
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
30,000-foot-level metric performance. 3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 62
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
© Smarter Solutions, Inc. 32 www.SmarterSolutions.com
Example: Hospital 30,000-foot-level metric –Diagnosis to bed time
• Demonstrated project’s process improvement
9181716151413121111
300
200
100
0
Tim
e (M
inut
es)
_X=45.7
UCL=80.0
LCL=11.5
Diagnosis to Bed Before ChangeDiagnosis to Bed After Change
200150100500
99
90
50
10
1
Perc
ent
7.065
1.82930
45.72 10.69 50 0.191 0.893124.9 45.40 50 0.767 0.043
Mean StDev N AD P
Diagnosis to Bed After ChangeDiagnosis to Bed Before Change
sub
I Chart of DiagnosistoBed by sub Probability Plot of DiagnosistoBedNormal
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 63
Week 51 there was a reduction from about 98% to 93% non-conf rate to 30 min. or less criterion
Process is predictable since day 51 with approx 93 % non-conformance rate to 30 min. criteria
Day DiagnosistoBed
Example: Hospital 30,000-foot-level metric –Errors per 1000 patient days
• Demonstrated project’s process improvementI Chart of Errors
4137332925211713951
80
60
40
20
0
Week
Erro
rs p
er th
ousa
nd p
atie
nt d
ays
_X=10.84UCL=15.30
LCL=6.39
Med Errors Before Med Errors After
C a o o s
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 64
Pred proc since week 30 with approx 11 errors per 1000 patient days
Process improvement was made in week 30 where error reduced from 48 to 11
Week
© Smarter Solutions, Inc. 33 www.SmarterSolutions.com
9. Maintain the Gain
• Value-chain metrics are to be a part of company-wide management review meetings for the assessment of day-to-
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.g y
day performance and process-steps execution.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
3. Analyze enterprise.
4. Establish SMART satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement areas and establish related SMART 30,000-foot-level metric
goals.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 65
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
g
7. Identify and execute projects.
8. Assess project's completion impact on
enterprise goals.
9. Maintain the gain.
Linkage of IEE with BPM
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 66
Reproduced from https://www.smartersolutions.com/business-system-iee/
© Smarter Solutions, Inc. 34 www.SmarterSolutions.com
Team Exercise: Objectives
• As a group, we will discuss how your organization’s structure would differ from the following hospital IEE value chain.
• After being shown various performance attributes of a hospital’s value chain After being shown various performance attributes of a hospital s value chain, your team is to present results from the following in a flip-chart presentation:
– Create an EIP for the determination of improvement projects, which would benefit the enterprise as a whole.
– List attributes of a business management policy (rules) that addresses day-to-day activities, performance monitoring, and improvement efforts.
D t diff b t th IEE/BPM t l ti t t diti l
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 67
– Document differences between the IEE/BPM system relative to traditional approaches in the following areas (include positives and negatives for each entry):
• Improvement project selection
• Business management
Team Exercise: Input
Vision Statement: Our hospital will maintain an occupancy
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
3. Analyze enterprise.
4. Establish SMART
satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement
areas and establish related SMART 30,000-foot-level metric goals.
7. Identify and execute projects.
8. Assess project's completion impact
on enterprise goals.
9. Maintain the gain.
p p yrate in the top 10% in our city while maintaining a full staff of employees and providing quality of services equal to or better than other hospitals in our area for all forms of service, achieving a cost structure that allows for maintaining excellent physical condition of the property.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 68
More on following slides
© Smarter Solutions, Inc. 35 www.SmarterSolutions.com
Team Exercise: Input
1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
3. Analyze enterprise.
4. Establish SMART
satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement
areas and establish related SMART 30,000-foot-level metric goals.
7. Identify and execute projects.
8. Assess project's completion impact
on enterprise goals.
9. Maintain the gain.
How would your organization’s value chain differ?
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 69
Will demonstrate clickable Enterprise Performance Reporting System (EPRS) approach to integrate “real-time” predictive performance metrics with processes; i.e., Y=f(X).
Team Exercise: Input
Report Finances: Value Chain Drill Down
Functional
Generic flowchart or value-stream map
metrics relative to quality, cost, and time
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 70
Y=f(X)
© Smarter Solutions, Inc. 36 www.SmarterSolutions.com
Team Exercise: Input
Report Finances: Profit Margins Drill Down
The process is predictable since the last process change. The estimated median is 9.9 with 80% of the occurrences from 8.7 to 11.2.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 71
Comment: On 10/1/2007 profit margins declined from an estimated median of about 11.9% to about 9.9%.
Voice of the Customer: Value Chain Drill Down
Team Exercise: Input
Functional
Generic flowchart or value-stream map
metrics relative to quality, cost, and time
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 72
© Smarter Solutions, Inc. 37 www.SmarterSolutions.com
Team Exercise: Input
Reporting VOC: Dissatisfaction Drill Down
The process is now predictable. The estimated performance or capability is a 0.131 non-conformance rate.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 73
Comment: Customer feedback:Poor room cleanliness, unfriendly staff, and spent a of time waiting.
Sales and Marketing: Value Chain Drill Down
Team Exercise: Input
Functional
Generic flowchart or value-stream map
metrics relative to quality, cost, and time
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 74
© Smarter Solutions, Inc. 38 www.SmarterSolutions.com
Team Exercise: Input
Reporting Sales & Marketing: Market share
Comment: On 9/1/2007 k t
Predictable process since last change. The estimated median is 52.6 with 80% of the occurrences between 51.3 to 53.8.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 75
9/1/2007 market share decreased from about 56% to about 53%.
Delivery of Services: Value Chain Drill Down
Team Exercise: Input
Functional
Generic flowchart or value-stream map
metrics relative to quality, cost, and time
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 76
© Smarter Solutions, Inc. 39 www.SmarterSolutions.com
Team Exercise: Input
Reporting Delivery of Services: LOS
The process is predictable between subgroups and within subgroups. The estimated median of 262 8 with 80% of the
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 77
Comment: There are no comments.
262.8 with 80% of the occurrences between 149.6 to 375.9
Team Exercise: Input
Reporting Del. of Services: Weekly Errors
The process is predictable. The estimated error rate is 10.84 per thousand.
Comment: Process
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 78
Comment: Process improvement was made in week 30 where error rate reduced from approximately 48 to 11 per 1000 patients
© Smarter Solutions, Inc. 40 www.SmarterSolutions.com
Housekeeping: Value Chain Drill Down
Team Exercise: Input
Functional
Generic flowchart or value-stream map
metrics relative to quality, cost, and time
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 79
Team Exercise: Input
Reporting Housekeeping: Quality
Comment: On
The process is predictable since the last process change. The estimated median is 6.8 with 80% of the occurrences from 6.1 to 7.4.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 80
Comment: On 9/1/2007 cleaning services quality decreased after being outsourced as part of a cost reduction program.
© Smarter Solutions, Inc. 41 www.SmarterSolutions.com
Patient Transportation: Value Chain Drill Down
Team Exercise: Input
Functional
Generic flowchart or value-stream map
metrics relative to quality, cost, and time
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 81
Team Exercise: Input
Reporting Transportation: Diag. to Bed
Comment: Week 51
The process is predictable since the last process change. The process estimated non-conformance rate is about 92.9%
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 82
Comment: Week 51 there was a reduction from about 98% to 93% non-conformance rate relative to a criterion of 30 minutes or less.
© Smarter Solutions, Inc. 42 www.SmarterSolutions.com
Team Exercise: Revisiting Objectives
• Present results from the following in a flip-chart presentation:– Create an EIP for the determination of improvement projects, which would benefit
the enterprise as a whole.the enterprise as a whole.
– List attributes of a business management policy (rules) that addresses day-to-day activities, performance monitoring, and improvement efforts. Consider the 9-step IEE system with BPM integration.
• Example responses are: 1. Each process owner daily monitors their value chain 30,000-foot-level metric to determine if there any special cause events that need to be addressed. 2. Divisional management is given a monthly status update on how EIP targeted metrics are performing and status of related improvement projects.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 83
– Document differences between the IEE/BPM system relative to traditional approaches in the following areas (include positives/negatives for each entry):
• Improvement project selection
• Business management
Revisiting: Graphic View on the 9 Steps to Excellence in Governance
4 Establish1. Describe vision and mission.
2. Describe value chain, including satellite-level and 30,000-foot-level metrics.
3. Analyze enterprise.
4. Establish SMART
satellite-level metric goals.
5. Create strategies.
6. Identify high potential improvement
areas and establish related SMART 30,000-
7. Identify and execute projects.
8. Assess project's completion impact
on enterprise goals
9. Maintain the gain.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 84
foot-level metric goals.goals.
Reproduced from Figure 4.7 of Integrated Enterprise Excellence Volume II, Business Deployment: A Leaders’ Guide for Going Beyond Lean Six Sigma and the Balanced Scorecard
Let’s now examine a checklist for accomplishing the IEE system attributes
© Smarter Solutions, Inc. 43 www.SmarterSolutions.com
IEE Business System Checklists
• Let’s collective look at the following IEE implementation checklists. Each person should highlight a couple important it th t diff ti t IEE f t diti l th d items that differentiate IEE from traditional methods. – Define: IEE Vol. II, Section 6.2, page 170
– Measure: IEE Vol. II, Section 7.2, page 194
– Analyze: IEE Vol. II, Section 8.2, page 229
– Improve: IEE Vol. II, Section 13.2, page 370
C t l IEE V l II S ti 14 2 397
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 85
– Control: IEE Vol. II, Section 14.2, page 397
• We will discuss items that were highlighted
Revisiting: Linkage of IEE with BPM
• IEE needs to be able to challenge or improve the or improve the rules/policies in an organization.
• Thoughts about IEE integration with BPM?
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 86
Reproduced from https://www.smartersolutions.com/business-system-iee/
© Smarter Solutions, Inc. 44 www.SmarterSolutions.com
SELECTED ATTRIBUTES Integrated Enterprise Excellence (IEE)
Typical MBA
Program
Traditional Six Sigma
Traditional Lean
Original Balanced Scorecard
Defines process for improvements at operational/project level ++ ‐ ++ ++ ‐
Defines a process for improvements at enterprise level ++ ‐ + + ‐
Comparison of Systems
++: Attribute included+: Partial/incomplete Inclusion- : Not included
Derives improvement projects from enterprise value chain metric performance needs ++ ‐ ‐ ‐ ‐
Uses DMAIC process to implement process improvements (P‐DMAIC) ++ ‐ ++ + ‐
Uses DMAIC process to integrate enterprise scorecards, strategic planning, business improvements, and control (E‐DMAIC)
++ ‐ ‐ ‐ ‐
Supports standardized graphical representation of selected data (dashboard) ++ + ‐ ‐ +
Aligns enterprise level business metrics (satellite‐ ++ ‐ ‐ ‐ ‐level) and operational metrics (30,000‐foot‐level) ++ ‐ ‐ ‐ ‐
Includes process for definition of rational metrics, aligned at operational and enterprise level ++ + ‐ ‐ ‐
Includes process for distinguishing between "common cause" and "special cause" problems so
as to eliminate firefighting
++ ‐ ‐ ‐ ‐
Integrates best practices of multiple disciplines: SS, Lean, DOE, etc. ++ ‐ ‐ ‐ ‐
Business System Maturity Model
• Attributes of a business system maturity model– EPM/BPM based Business System in Place
Process aligned metric usage A business system– Process aligned metric usage
– Predictive performance reporting
– Automation in reporting
– Decisions based on performance metrics
– Entire enterprise linked through a single reporting system
– Strategies developed from performance gaps
– Strategic alignment of improvement efforts
A business system maturity model form is
provided near the end of the course material.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 88
g g p
• A 1-10 score is to determined for each attribute, where 10 is perfection. – The lowest of the eight attribute scores is the overall organization maturity
model score.
© Smarter Solutions, Inc. 45 www.SmarterSolutions.com
Individual Exercise: Your Business System Maturity Model Assessment
• Using the blank business system maturity model form that is provided near the end of the workshop hand-out material,
h t d t i ti ’ ll t it d l what do you rate your organization’s overall maturity model score to be?
• At the beginning of this workshop, I said you reported directly to your CEO. You now no longer have this reporting.
Wh t ld b t t f i i it b i t
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 89
• What could be your next step for increasing its business system maturity?
• To address this question, you could gain insight to addressing this question by examining the attributes that have the lowest maturity model scores.
IEE Business System Evolution
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 90
© Smarter Solutions, Inc. 46 www.SmarterSolutions.com
Integrated Enterprise Excellence System
• Can effectively integrate environmental impact efforts, VOC, supply chain, etc. activities; i.e., silo activity avoidance
One of the five book IEE series is available as a free e book• One of the five-book IEE series is available as a free e-book
• Descriptive IEE Videos – Issues with our Current Business Management System and Resolution
– The Integrated Enterprise Excellence Business Management System
• Documented IEE case study – Oracle Packaging, which manufactures aluminum foil
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 91
– Case study documentation in Smarter Solutions’ website resource library• American Management Association article
• Video
See www.smartersolutions.com
Readdressing Learning Objectives
• Summarize problems with current business management systems.
• Describe issues with current process improvement efforts.
• Describe benefits of predictive scorecards.
• Describe an enhanced system where business metric improvement needs pull for projects that benefit the business as a whole.
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 92
© Smarter Solutions, Inc. 47 www.SmarterSolutions.com
Q & A
Forrest W. Breyfogle III
Contact Information
Phone: 512.918.0280Email: [email protected]: www.smartersolutions.com
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 93
Potential Team Exercise Solution
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 94
© Smarter Solutions, Inc. 48 www.SmarterSolutions.com
Potential Team Exercise Solution
Step 4 Step 5 Step 6 Step 7
Copyright 1992 – 2013. All rights reserved. Smarter Solutions, Inc. (www.SmarterSolutions.com) 95
Business System Maturity
EPM/BPM based
Business System in
Place
Process aligned
metric usage
Predictive
performance
reporting
Automation in
reporting
Decisions based on
performance metrics
Entire enterprise
linked through a
single reporting
system
Strategies
developed from
performance gaps
Strategic alignment
of improvement
efforts
10EPM/BPM
part of
the culture
100%
100%
100%
100%
100%
100%
100%
990%
100%
100%
80%
85%
100%
100%
85%
880%
100%
85%
60%
70%
85%
100%
70%
770%
100%
70%
40%
55%
70%
80%
55%
655%
100%
55%
20%
40%
55%
60%
40%
540%
80%
40%
few
25%
40%
40%
25%
425%
60%
25%
few
10%
25%
20%
10%
310%
40%
10%
few
few
10%
Some
Some
25%
20%
few
few
few
few
Some
Some
1No uniform
business system
few
few
few
few
few
Some
Some
Description
There is an
orchestration of EPM
and BPM efforts throughout the business for the enterprise and daily
business processes, where the m
ost appropriate processes are automated
A EPM system is being used to determ
ine targeted strategies that are aligned to finan
cial m
etric
improvement desires, which results in tim
e‐series predictive m
easurement goals that pull process
improvement efforts, which in turn have enterprise‐as‐a‐whole benefit
Operational m
anagers are using predictive perform
ance reporting and statistical analyses in their status
meetings and decision‐m
aking process within their BPM implementation
Software is being used to automatically update the value chain’s operational and financial time‐series
predictive operational an
d finan
cial perform
ance m
etrics
A value chain is linking business and operational p
rocesses throughout the organization with predictive
scorecard perform
ance reports‐outs, when
appropriate
Business and operational processes are tim
e‐series tracked so that when a process is stab
le a predictive
statement is provided
Processes are being documented (and in some cases automated) through
a Business Process M
anagement
(BPM) initiative; a Lean Six Sigma process im
provemen
t program has been undertaken; an
d/or a Lean
program using Kaizen
events has been implemented with value‐stream assessmen
ts
KPIs’ perform
ance are being tracked and reported
over time; however, there is no systematic linkage betw
een
these m
etrics and a structured process improvement methodology
Executive m
anagement has identified some overall business KPIs an
d are using them is some decision m
aking
and strategic planning.
Limited
use of defined processes, perform
ance m
etrics.
V06-24-09
Smarter Solutions, Inc. COURSE EVALUATION
Name: _________________________________________________ Date: _________________________________ (Note: providing your name is optional, but it can help us address specific issues you may have.)
Course Name: _____________________________________________________________
Instructor (A): ______________________________________ Instructor (B): __________________________________
Previous Knowledge & Experience: The following information is requested for the purpose of generating a knowledge & experience
level baseline of the respondents.
1. To what extent have you previously learned and applied statistical concepts and tools in your work environment? To No To a Small To a Moderate To a Great To a Very Extent Extent Extent Extent Great Extent
1 2 3 4 5 1 2 3 4 5
2. To what extent have you previously learned and applied process improvement methodologies in your work environment?
To No To a Small To a Moderate To a Great To a Very Extent Extent Extent Extent Great Extent
1 2 3 4 5 1 2 3 4 5
Please use the following scale to indicate your level of agreement with the following statements and circle the appropriate rating. If you select a 2 or 1 rating, what should be improved? It was NOT satisfactory to you.
1 2 3 4 5
Strongly Disagree
(Unsatisfactory)
Disagree (Unsatisfactory)
Neither Agree or Disagree
(Neutral)
Agree (Satisfactory)
Strongly Agree (Satisfactory)
Unsatisfactory Satisfactory
Content 3. This course provided a good understanding of IEE and Lean Six Sigma techniques. 1 2 3 4 5
(If 2 or 1 what should be improved?)____________________________________________________________________________________
4. This course taught me something I can apply at work. 1 2 3 4 5 (If 2 or 1 what should be improved?)____________________________________________________________________________________
5. Overall, this course provided a good balance between lecture, discussion, examples 1 2 3 4 5 and exercises. (If 2 or 1 what should be improved?)____________________________________________________________________________________
6. The content of this course was taught in a logical sequence. 1 2 3 4 5
(If 2 or 1 what should be improved?)____________________________________________________________________________________
Instructor(s) If there were multiple instructors delivering this session, please rate them independently.
7. The instructor demonstrated a thorough understanding of the content. (Instr A) 1 2 3 4 5 (If 2 or 1 what should be improved?)____________________________________________________________________________________ (Instr B) 1 2 3 4 5 (If 2 or 1 what should be improved?)____________________________________________________________________________________
8. The instructor encouraged participation during the class. (Instr A) 1 2 3 4 5
(If 2 or 1 what should be improved?)____________________________________________________________________________________ (Instr B) 1 2 3 4 5 (If 2 or 1 what should be improved?)____________________________________________________________________________________
9. The instructor responded to the needs of the learners. (Instr A) 1 2 3 4 5 (If 2 or 1 what should be improved?)____________________________________________________________________________________ (Instr B) 1 2 3 4 5 (If 2 or 1 what should be improved?)____________________________________________________________________________________
10. The instructor was well prepared. (Instr A) 1 2 3 4 5 (If 2 or 1 what should be improved?)____________________________________________________________________________________ (Instr B) 1 2 3 4 5 (If 2 or 1 what should be improved?)____________________________________________________________________________________
11. Coaching sessions were effective (leave blank if course or instructor does not conduct formal coaching sessions). (Instr A) 1 2 3 4 5 (If 2 or 1 what should be improved?)____________________________________________________________________________________ (Instr B) 1 2 3 4 5 (If 2 or 1 what should be improved?)____________________________________________________________________________________
V06-24-09
Materials 12. The course materials were easy to follow and furthered the learning process. 1 2 3 4 5
(If 2 or 1 what should be improved?)____________________________________________________________________________________ 13. The examples presented enhanced my understanding of the content. 1 2 3 4 5
(If 2 or 1 what should be improved?)____________________________________________________________________________________ 14. The exercises helped me understand how to apply concepts presented. 1 2 3 4 5
(If 2 or 1 what should be improved?)____________________________________________________________________________________ 15. The homework reinforced my understanding of concepts presented each day (not all 1 2 3 4 5
courses have homework). (If 2 or 1 what should be improved?)____________________________________________________________________________________
16. The pace of this course was appropriate. 1 2 3 4 5
17. The amount of material was appropriate for the time allowed. 1 2 3 4 5
Facilities 18. The classroom was comfortable and conducive to learning. 1 2 3 4 5
(If 2 or 1 what should be improved?)____________________________________________________________________________________ 19. The frequency and length of breaks was appropriate. 1 2 3 4 5
(If 2 or 1 what should be improved?)____________________________________________________________________________________ 20. The meals were well prepared and served. 1 2 3 4 5
(If 2 or 1 what should be improved?)____________________________________________________________________________________
Overall Satisfaction 21. Overall, this course met my expectations. 1 2 3 4 5
(If 2 or 1 what should be improved?)____________________________________________________________________________________ 22. I would recommend this course to others. 1 2 3 4 5
(If 2 or 1 what should be improved?)____________________________________________________________________________________
23. Please list the 4 most important things you learned in this class.
a. __________________________________________ b. ____________________________________________________________
c. __________________________________________ d. ____________________________________________________________
24. What questions do you have that were not covered in this session?
a. _________________________________________________________________________________________________________
b. _________________________________________________________________________________________________________
c. _________________________________________________________________________________________________________
25. What could have been done to make this class more effective?
a. _________________________________________________________________________________________________________
b. _________________________________________________________________________________________________________
c. _________________________________________________________________________________________________________
26. We greatly appreciate quotable testimonials about our workshops, coaching, and other services.
Name & Title: ________________________________________________________________________________________
It is OK to quote me (company and title too?) _____Yes Company:____________________________________________
Quote: ____________________________________________________________________________________________________
___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
27. May we contact you as a reference for this course? _____ Yes _____ No
E-mail address: