August 15, 2015

3 levels of business management process

Michael Harry: (3 levels of business management process Business, Operations And Process) Harry’s Six Sigma breakthrough strategy at the business operation and process level

Michael Harry: (3 levels of business management process)
“Process can be viewed as being both comprised of smaller micro-or sub processes and constitutes of larger macro-Processes. It is often convenient to think of at least three levels of the overall process because Six Sigma methods and procedures change somewhat from level to level. Process problems are hierarchical and interconnected to operation issues, which in turn, are tied to support systems ultimately linked to business issue such as customer satisfaction, profitability, and share holder value.

The three main levels may be described as Business, Operations And Process.”

Business level
•Business level problems often relate to the enterprise information and financial systems used to ‘steer’the business.
•The objective at this level is to recognize the true states of the business
•Specifically, the primary objective of Six Sigma at the businesslevel is to identify the Xs or Key Process Input variable (KPIVs) from component subsystems at operation level that relate to changes in the Ysor Key Process Output variables (KPOV) at business level.
•Some examples of KPOV at business level: Market metrics (customer related), such as price, quality, value and availability ; Business metrics (shareholder related): such as profit, market share, return on asset, time to market.

Harry’s Six Sigma breakthrough strategy at the business level is:
•Recognize the true states of your business
•Define what plans must be in place to realize improvement of each state
•Measure the business systems that support the plans.
•Analyze the gaps in system performance benchmarks.
•Improve system elements to achieve performance goals.
•Control system-level characteristics that are critical to value.
•Standardize the systems that prove to be best in class.
•Integrate best in class systems into the strategic planning framework.

Operations level
•Operation level problems often relate to manage operations and making product or delivering services.
•Issues of product cost, quality, inventory, throughput and availability are often important at this level.
•Specifically, the primary objective of Six Sigma at the operation level is to identify the Xs or Key Process Input variable (KPIVs) from component subsystems at process level that relate to changes in the Ysor Key Process Output variables (KPOV) at operation level.

Harry’s Six Sigma breakthrough strategy at the operation level is:
•Recognize the key operational issues that link to key business systems
•Define Six Sigma projects to resolve operational issues
•Measure performance of the Six Sigma projects
•Analyze project performance in relation to operational goals
•Improve Six Sigma project management system
•Control inputs to project management system
•Standardize best-in-class management system practices
•Integrate standardized Six Sigma practices into policies and procedures

Process level

•Operation level deals with process elements that may contributing locally to the cost of poor quality (COPQ)
•The objective is to recognize process problems that link to important operational issues.
•Specifically, the primary objective of Six Sigma at the operation level is to identify the Xs or Key Process Input variable (KPIVs) from suppliers, procedures, people, machines, and the environment that relate to to changes in the Ysor Key Process Output variables (KPOV) at process level.

Harry’s Six Sigma breakthrough strategy at the operation level is:
•Recognize the functional problems that link to key business systems
•Define the processes that contribute to the functional problems
•Measure the capability of each process that offers operational leverage
•Analyze the data to assess prevalent patterns and trends
•Improve the key product/service characteristics created by key processes
•Control the process variables that exert important influences
•Standardize the methods and processes producing best-in-class performance
•Integrate standard methods and processes into the design cycle