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  • 1. Achieving Six Sigma with Metastorm Enterprise © Copyright 2009, Metastorm Inc.
  • 2. Executive Summary Six Sigma is one of the primary quality initiatives of our time. In today‟s rapidly changing and difficult business environment, Six Sigma helps organizations gain improvements in process and product quality. Their success lies in the ability to tie project results directly to improved customer satisfaction ratings and bottom line savings. Without an effective means to model, The name Six Sigma is taken from the approach‟s statistical roots. If a execute and monitor product or process achieves a Six Sigma level of consistency, then it is process experiencing only 3.4 defects per million opportunities (DPMO). In other improvements, Six words, Six Sigma products and processes are 99.99966% consistent. Such impressive results are realized because Six Sigma projects follow Sigma performance a proven, five-phased approach known by the acronym “DMAIC”: levels are seldom attained. Metastorm answers the demand  Define the problem area in objective terms for complete Six  Measure the performance of products and processes Sigma project  Analyze the problems to identify root causes productivity and process  Improve the results by redesigning processes and reducing variation management with Metastorm  Control the processes to ensure the improvements are permanent Enterprise. To manage and execute projects, Six Sigma teams traditionally have juggled a number of tools – including disparate diagrams, spreadsheets and charts. Complex and inefficient, this fragmentation detracts from the focus on critical business issues. And control systems in completed projects often lack the robustness for sustained results. Without an effective means to model, execute and monitor the process improvements, Six Sigma performance levels are seldom attained. Metastorm answers the demand for complete Six Sigma project productivity and process management with Metastorm Enterprise. This powerful, integrated combination of enterprise modeling, business process analysis, and business process management tools enables Six Sigma teams to effectively perform the entire DMAIC process. The Metastorm Enterprise platform includes:  Metastorm ProVision® – A comprehensive suite for enterprise and business architecture, process discovery and business process analysis – allowing Six Sigma teams to translate business strategy and operational objectives into successful enterprise change through models that describe enterprise assets and their relationships. This understanding of the enterprise serves as the context for effective Design, Measurement, Analysis, Improvement and Control in Six Sigma projects. Metastorm ProVision provides users with a wide array of modelers and reports that directly support Six Sigma initiatives. 2 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 3.  Metastorm Discovery™ – Takes business process data collection and analysis to the next level. Organizations use this solution to replace traditional methods of gathering as-is process information and to formalize process discovery activities. Metastorm Discovery, which is part of the Metastorm ProVision offering, eliminates the problem of having insufficient or This paper reviews inaccurate data to optimally leverage Six Sigma. the five phases of Six  Metastorm BPM® – A complete Business Process Sigma and describes Management Suite for roundtrip process life-cycle how Metastorm can management including design, automation, analysis, help organizations and monitoring of an organization‟s human-centric and reach higher levels integration-centric activities and processes. Business Process Management is integral to Six Sigma because it of process allows organizations to improve their most critical excellence and more business processes and has a direct impact on cost, rapidly achieve productivity, response time, visibility and profitability. quality objectives.  Metastorm Integration Manager – A high-performance integration platform that automates system-based business processes, provides secure managed file transfer, and opens up legacy system applications for use in new service-oriented applications. Metastorm Integration Manager provides visibility into what is happening at the system and data level – insight that can be valuable in optimizing all levels of quality. This paper reviews the five phases of Six Sigma and describes how Metastorm can help organizations reach higher levels of process excellence and more rapidly achieve quality objectives. 3 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 4. Executive Summary ............................................................................................2 Six Sigma Project Overview ...............................................................................5 Define ...............................................................................................................5 Measure............................................................................................................5 Analyze .............................................................................................................5 Improve ............................................................................................................6 Control ..............................................................................................................6 The Define Phase ................................................................................................6 Business Interaction Model ..............................................................................7 Critical Requirements Model ............................................................................8 SIPOC Model ....................................................................................................9 Cost/Benefit Analysis ...................................................................................... 12 The Measure Phase .......................................................................................... 12 As-Is Workflow Model ..................................................................................... 13 Process Discovery .......................................................................................... 14 RACI Model .................................................................................................... 16 Failure Mode and Effects Analysis ................................................................. 16 The Analyze Phase ........................................................................................... 17 Cause and Effect Model ................................................................................. 17 Process Simulation ......................................................................................... 19 Collaborative Analysis .................................................................................... 21 The Improve Phase ........................................................................................... 22 Opportunity Model .......................................................................................... 25 Process Execution .......................................................................................... 26 The Control Phase ............................................................................................ 27 The Bottom Line................................................................................................ 29 4 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 5. Six Sigma Project Overview Six Sigma projects typically involve five phases: Define, Measure, Analyze, Improve and Control (DMAIC): Six Sigma projects typically involve five Define phases: Define, Measure, Analyze, In the define phase, project objectives and boundaries are set. These Improve and Control project objectives are based on the organization‟s business goals, (DMAIC). customer needs, and knowledge of processes that must be improved in order to reach a higher sigma level. The primary outputs of the define phase are:  Project scope visually related in a business interaction model  Critical requirements model based upon “the Voice of the Customer”  Voice of the Customer Report  Association matrices of critical goals to business deliverables and business processes  Supplier-Input-Process-Output-Customer (SIPOC) model for each business process  Impacted roles optionally structured in an organization model  Definition of the project requirements  Cost/Benefit Analysis Measure In the Measure Phase, the goal is to pinpoint the location or source of problems by building an understanding of existing process conditions and problems. Important outputs of this phase are:  Process Discovery  The “as-is” workflow model, which aids in understanding the business process, and identifies where measurements should be taken  FMEA  RACI Model Analyze In the Analyze Phase, theories about the cause of process problems are proposed, confirmed (or rejected) with data, and ultimately the root cause(s) are identified. The primary outputs of the Analyze Phase are: 5 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 6.  Cause and effect model  Association matrix showing the impact on critical goals by current problems  Detailed “as-is” workflow model  Simulation results of the current process highlighting process problems The Define Phase establishes the  Collaborative analysis including Minitab, JMP and purpose and overall Crystal Reports scope of the Six Sigma project. The Improve scope document describing a Six In the Improve Phase, solutions are proposed, developed, evaluated and implemented. The primary outputs of this phase are: Sigma project includes a clear  Opportunity model statement of the  “To be” workflow models showing possible solutions project charter and business case (i.e.,  Simulation results of the proposed solutions to evaluate alternatives the motivation for the project).  Association matrix comparing opportunities to problems  Process execution for improved project sustainability Control During the Control Phase, a solution is determined for each process and plans are made for its implementation. Putting a solution in place can fix a problem for the moment. The Control Phase helps ensure that the fix is permanent, and that steps are in place to refine and further improve the new process over time. The creation of standards and documentation of the new, improved process are important aspects of this phase, as is the ability to obtain greater visibility and control over processes for better compliance and quality control. The Define Phase The Define Phase establishes the purpose and overall scope of the Six Sigma project. The scope document describing a Six Sigma project includes a clear statement of the project charter and business case (i.e., the motivation for the project). The Metastorm ProVision enterprise modeling solution uses a combination of business modeling and statistical analysis that is integral to each phase of the DMAIC approach. Business modeling provides for a concise structure and definition of all aspects of the business. Statistical analysis aids in pinpointing current process problems, and verifies the expected level of performance improvements a redesigned process should realize. Metastorm ProVision produces a Business Interaction Model, illustrating the impacted organizations and customer 6 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 7. base; a model driven by the requirements of the customer; and a high- level SIPOC model for each of the processes within the scope. Business Interaction Model The Metastorm ProVision BIM creates the overall strategic view of the business. This view covers the entire breadth of the Six Sigma project Metastorm ProVision from an organizational standpoint. It may encompass multiple key produces a Business business processes performed by the organizations shown in this Interaction Model model, as well as show the organizational boundaries within the that illustrates the business, and the primary relationships between both internal and impacted external organizations. organizations, the Since the entire enterprise is too large to address during a single customer base, and project, a typical Six Sigma effort covers a portion of the business the customer referred to as the business domain. The region in the center of the requirements. Metastorm ProVision BIM represents this business domain. The model defines the boundaries of the project by placing the business domain within the context of its suppliers, customers and competition. The Metastorm ProVision Business Interaction Model The BIM concentrates on organizational relationships, which involve the passing of goods and information across political boundaries. Interactions with customers, suppliers, competitors, and major internal organizations are evaluated to identify critical goals. The BIM created in Metastorm ProVision serves as the basis for identifying other components in the Define Phase, including the 7 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 8. customers that will be queried to identify critical issues and customer requirements. In fact, each interaction has an organizational unit in the role of the customer. This allows critical customer requirements to be identified throughout the scope. Each major interaction serves as the trigger for a major component or the result of a key business process, and each of these processes is outlined using a SIPOC model. The identified business processes then become the candidates for process improvement and are mapped against the critical customer requirements to identify priority. Critical Requirements Model A critical requirements model, created within Metastorm ProVision, identifies issues that are important to the customer. Quality W idget Critical Requirements Critical to Critical to Critical to Critical to Cost Quality Process Delivery Requirements Requirements Requirements Requirements (CTC) (CTQ) (CTP) (CTD) Produce Test All Reduce Price W idgets W idgets W idgets for In-Transit Competitiively W ithin Compliance Time Specifications Reduce Eliminate Decrease Production Pakcage In-Queue Material Overhead Product Time Handling Appr opriately Decrease Design W arranty Reduce Quality into Claims Product Product Returns Use W idgets with Little Training Metastorm ProVision Critical Requirements Model The requirements are categorized in the model using a general-to- specific format. The customer-driven requirements are organized into major categories, logically grouped by issues that are customer focused. Example groupings include customer requirements that are critical-to-quality (CTQ), critical-to-delivery, critical-to-cost and critical- to-process. 8 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 9. Critical customer requirements aid in scoping the Six Sigma effort by helping the participants focus their improvement efforts. These requirements express the issues that are the key drivers to customer satisfaction. Such issues may determine the products and services offered by the business, or influence the features and functions of current products and services. The high-level customer requirements shown in the preceding model facilitate the identification of detailed Critical customer customer requirements. These requirements typically contain specific, measurable criteria to judge attainment of the goals. The next phase of requirements aid in the Six Sigma project (Measure) captures the actual measurements of scoping the Six these requirements as a critical attribute. Sigma effort by helping the The BIM in Metastorm ProVision identifies the critical relationships participants focus between the suppliers, customers, competitors, and major internal organizations. These relationships express the key process variables their improvement (deliverables) passed between participants. These deliverables will be efforts. These measured to assess the achievement level of the critical requirements. requirements A Voice of the Customer report is created between the critical express the issues requirements and the deliverables identified in the BIM. This report that are the key provides a picture of how the critical requirements relate to the relationships between suppliers, internal organizations, and ultimately drivers to customer the customers. satisfaction. Metastorm ProVision Voice of the Customer Report SIPOC Model SIPOC is an acronym for Suppliers, Inputs, Processes, Outputs and Customers and shows how these business entities interact at the boundary of the process. Using Metastorm ProVision, a SIPOC model can be built for each business process within the scope of the Six Sigma project. 9 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 10. The SIPOC model establishes the boundaries of a particular business process. A business process is a time-bounded set of activities that consumes resources and produces products and/or services. Each process‟ SIPOC model provides the reader with a firm idea of the beginning of the process (by showing its resources and suppliers), and the ending points of the process (by showing its outputs and customers). The SIPOC models provide a process-driven approach to divide the entire scope of the Six Sigma project into manageable partitions. The SIPOC models define the high-level process participants that are included in the scope of this Six Sigma project. The SIPOC model is created after a BIM, or in place of it, if the scope of analysis is confined to a single business process. A SIPOC model can be built using the specific process under study as its domain. The following example displays a SIPOC model built using Metastorm ProVision‟s SIPOC modeler: Co mp Component on en Vendors tP art s Venture Capital Fill Order Completed Order Capital Manufacturing y Markets log Companies no ech wT Ne Research Community Metastorm ProVision SIPOC Model The business processes identified in the SIPOC models are associated with the critical business requirements. A requirements-to-business process association matrix can be developed using Metastorm ProVision. This serves as a cross- checking mechanism to ensure a complete set of requirements and processes have been identified. As with the deliverables, business processes are associated to requirements using an association matrix. 10 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 11. Typically, customer-driven requirements are addressed by the business‟ core processes (which produce the products and services delivered to customers). Support processes (supporting the core processes, such as manage finances) may address only a few customer-driven requirements. A requirements-to- business process association matrix can be developed using Metastorm ProVision. This serves as a cross- checking mechanism to ensure a complete set of requirements and processes have been identified. Metastorm ProVision Requirements to Business Process Association Matrix Based upon the organizations identified in the BIM and the SIPOC models, an organization chart can also be produced during the Define Phase, illustrating the organizations and roles impacted by the Six Sigma project. 11 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 12. Cost/Benefit Analysis Another important step within the Define Phase that is enabled with Metastorm ProVision is a cost/ benefit analysis. This requires the gathering of financial data to quantify costs and benefits. A net present value calculation can then be performed, and a cost/benefit analysis chart can be produced as a result. Armed with the deliverables from the Define Phase, the Six Sigma team begins the detailed work in the Measure Phase. The objective of the Measure Phase is to evaluate how well customer requirements are being met, and how efficient the organization is in meeting those requirements. Metastorm ProVision Cost/Benefit Analysis Chart The Measure Phase Armed with the deliverables from the Define Phase, the Six Sigma team begins detailed work in the Measure Phase. The objective of the Measure Phase is to evaluate how well customer requirements are being met, and how efficient the organization is in meeting those requirements. The measurement data collected provides the basis for precisely identifying the source and nature of existing problems that inhibit meeting the customer requirements in an efficient manner. This is accomplished by establishing a factual understanding (via modeling and measurement) of the current processes. The investigation helps narrow the problems that must be examined during the Analysis Phase. These measurements also establish a benchmark against which process improvements can be compared. 12 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 13. As-Is Workflow Model Before measurements can be taken, the Six Sigma team must understand the flow of responsibility and how work is currently performed within each process. To accomplish this, a current picture of a process can be developed using a workflow model in Metastorm ProVision. Creating a detailed model for each process provides the Before following advantages: measurements can be taken, the Six  Focus – A workflow model takes a large process and Sigma team must renders it in manageable pieces for analysis. understand the flow  Context – A workflow model puts critical problems in the of responsibility and context of where and how they occur. how work is currently  Targeted measurements – A workflow model identifies performed within where and when the measurements should be taken. each process.  Obvious causes – Modeling a process can expose the obvious problems occurring in the process. The obvious errors are occasionally referred to as “low-hanging fruit” because of the ease of identifying and correcting the problem. Using the SIPOC model as the high-level scope of the process, the Six Sigma team uses Metastorm ProVision to build an “as is” workflow model for each process. The workflow model is a visual representation of the process, which clearly shows:  The beginning and end of the process.  Each activity that makes up the process and the sequence in which they occur.  Where decision points occur.  The organization or role responsible for each activity.  Where work is handed off from one organization to another (a frequent source of quality problems and inefficiencies).  Where systems are invoked to support the process.  Major deliverables moving from activity to activity within the process.  The complexity of the process (complex processes usually have more quality problems than simple ones). 13 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 14. A Metastorm ProVision “As-Is” Workflow Model with data from Metastorm Discovery shown in green Using the workflow models as a guideline, the Six Sigma team develops its sampling strategy. This strategy includes what to measure, how to measure, how often to measure, etc. The measurement data collected from Metastorm Discovery or created within Metastorm ProVision can be directly exported to tools such as Minitab, JMP or Microsoft Excel for detailed analysis in the third phase of the DMAIC approach. Process Discovery Metastorm Discovery™ is an interactive process discovery tool designed to enable faster and more accurate collection of data, process understanding, and process metrics that can drive Six Sigma measurement efforts. Used for collecting and analyzing process data and performance metrics on human-centric business activities, Metastorm Discovery dynamically adapts to user responses and prompts the user with questions that capture relevant cause and effect insights into process activities as they unfold. In the Measure Phase of Six Sigma projects, field users can employ Metastorm Discovery to capture data through a handheld PDA or on their PC as they engage in activities, ensuring that the data is timely and accurate. The user-driven nature of the product reduces the need for 14 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 15. costly consulting analysis and eliminates the need to have external observers document process activities. Instead process details are recorded by those who are closest to the activities and have the best understanding of the activities‟ details. This hands-on approach not only results in a more accurate view of the process, but it also involves process participants in Six Sigma activities early in the cycle, easing the impact of change management issues. Metastorm Discovery Activity Dashboard Report Process Discovery allows organizations to capture information about all steps in a process – including manual and off-line activities. As part of the combined Metastorm Enterprise platform, the data captured in Metastorm Discovery can be leveraged by Metastorm ProVision as input for modeling an “as is” process and analyzing potential improvements – with the goal of optimizing the process to meet specific strategic objectives, such as minimizing costs, accelerating response time, or improving productivity. The optimized process can then be deployed and automated in the Six Sigma Improve stage through Metastorm BPM. 15 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 16. RACI Model Determining responsibilities for different types of decisions is an important part of Six Sigma programs. A typical model used for this purpose is called RACI, which stands for Responsibility, Accountability, Consultation and Inform. A RACI model is the product of the Metastorm Using Metastorm ProVision workflow model. ProVision the Six Sigma team can identify the possible failures that can occur for each activity. Once identified, three aspects of those failures can be reviewed and quantified: potential failure effects, current controls, and recommended actions to reduce risk. Metastorm ProVision Activity Involvement Matrix (RACI) Failure Mode and Effects Analysis FMEA—failure mode and effects analysis—allows an assessment of the risk to customers if a key process input were to fail. Using Metastorm ProVision in the Measure Phase, the Six Sigma team can identify the possible failures that can occur for each activity. Once identified, three aspects of those failures can be reviewed and quantified: potential failure effects, current controls, and recommended actions to reduce risk. A risk priority number, or RPN, can be developed for each activity, and the activities with highest RPNs can be acted upon first to minimize risk of failure. 16 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 17. The cause and effect model is an interactive analysis tool for structuring the problem investigation during the Analyze Phase. Metastorm ProVision Failure Mode and Effects Analysis The Analyze Phase The objective of the Analyze Phase is to identify the root causes of problems within the business processes. The analysis takes the form of both process and data analysis. Process analysis examines how work is performed. This analysis identifies inconsistencies, process disconnects and other inefficiencies that lead to problems. Data analysis uses the measurement data, gathered in the previous phase, and evaluates it. Data analysis can suggest patterns, tendencies or possible causes for the problems. Cause and Effect Model Simulation variables can be changed and multiple simulation scenarios –as suggested by potential problems defined in a Metastorm ProVision cause and effect model– can be completed to test variations to the process. The analysis might also suggest the need for further data collection to support problem identification. The cause and effect model structures the root causes of the primary problems in the business. This graphical representation of cause and effect helps to visualize the impact relationship that problems have on each other and serves as an interactive analysis tool for structuring the problem investigation during the Analyze Phase. Its high-level broad categories keep the Six Sigma team from concentrating on a single problem area. 17 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 18. As the Analyze Phase continues, the cause and effect model assists with keeping track of which causes have been investigated, and which have the greatest impact on the primary problems. Parts Issues Damaged in Long Poor Vendor Transit In-transit Training Time Rough Parts Get Handling W et Process Issues Inadequate Inadequate Poor Documentation Testing Process Design Production No Update Variances Responsibility People Issues New Inadequate Temporary Lack of Employee Training Employees Motivation Inexperience Lack of User Manuals Equipment Issues Poor Lack of Outdated Equipment Capital Tools Maintenance Expenditure Old Old Design Technology Construction Metastorm ProVision Cause & Effect Model 18 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 19. The cause and effect model is created within Metastorm ProVision‟s problem modeler. The root causes can be mapped back against the critical requirements using the tool‟s association matrix capability. This relationship is another excellent exercise for assessing the priority of developing solutions for the identified root causes. The root causes associated to high priority requirements should be given greater attention and focus. Metastorm ProVision Requirement to Problem Association Matrix Process Simulation Often visual inspection and analysis of the workflow model can assist in identifying the root causes of problems, which is an important aspect of the Analyze Phase. Items identified during inspection include:  Bottlenecks – Bottlenecks are points in the process where multiple flows converge on a single activity. Bottlenecks prolong cycle time when certain inputs arrive and must wait for other inputs, or there are inadequate resources to manage all of the inputs.  Disconnects – Disconnects occur when the handoff from one responsible participant to the next is poorly handled. Typically, this is the result of deliverables not being in a form that is usable by the receiving participant, or an effective communication mechanism has not been set up between participants. Disconnects typically occur when the overall process has not been properly designed. 19 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 20.  Redundancies – Redundancies are activities that are performed repeatedly throughout the process by different participants. Redundant activities waste time and money and are not considered to add value by the customer of the process.  Rework – Rework is recursion that occurs in the process to correct errors. When deliverables “loop back” in the The ultimate form of process flow, additional cost is incurred to rework the process analysis is deliverables and time is wasted in delivering the results to use the workflow to the customer. model as the basis  Serialization – Serialization occurs when all activities for simulating the within a process are performed in sequential order. process. While some processes may require this (e.g., manufacturing processes), opportunities should be identified where activities can be performed in parallel. When activities are performed in parallel the cycle-time for the entire process is shortened. In addition to the visual modeling constructs, the workflow model in Metastorm ProVision can also capture meaningful data about each component in the process, including:  Frequency of events that trigger the process  Activity timing  Transit times between activities  Activity costs  Required resources and commodities These data elements can form the basis for additional theories regarding process performance inhibitors (i.e., problems). The ultimate form of process analysis is to use the workflow model as the basis for simulating the process. Metastorm ProVision offers two forms of simulation: Monte Carlo and Discrete Event.  Monte Carlo simulation is useful for calculating process timing and analyzing the process‟ activity-based costs. Monte Carlo simulation assumes infinite resources are available to run the process in order to determine the amount of resources actually necessary.  Discrete Event simulation is useful for analyzing bottlenecks, resource constraints, excessive queuing in the process, etc. Discrete Event simulation is more sophisticated than Monte Carlo simulation because it considers the frequency of events, the capacity of activities, and the availability of resources. Metastorm Discovery provides the critical data, collected accurately and economically, to automatically be carried into Metastorm ProVision‟s simulation capability. 20 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 21. Both simulators produce a variety of charts and graphs that facilitate analysis of the process, revealing an even more detailed understanding of process issues. Process simulations are a very quick and cost- effective method for testing the results of changes to any part of the process. Because simulations take no actual process time or resources, the data generated by multiple simulation scenario runs can be invaluable for identifying key process problems and assisting in cost/benefit analysis. Process Timing results produced for timing analysis within Metastorm ProVision Collaborative Analysis  Minitab and JMP. As previously mentioned, during the Analyze Phase, Metastorm ProVision can be augmented with detailed data gathering and statistical analysis tools, like Minitab and JMP. Modeling and statistical tools, when used in tandem, can confirm or reject the theories proposed in the Measure Phase. For example, these statistical analyses can use simulation to pinpoint the time and conditions where a process bottlenecked or excessive costs were incurred. The Analyze Phase produces verified theories of the source of errors and quality problems.  Crystal Reports. Six Sigma is a data-driven process, and reporting capabilities are critical in the Measurement Phase. Rather than create a new reporting environment that must be learned by Six Sigma teams, Metastorm ProVision includes BusinessObjects Crystal Reports controls. This provides the flexibility to select and analyze data in multiple 21 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 22. formats. To optimize performance, Metastorm ProVision works in concert with Crystal Reports to extract only the data needed to create the report. A set of pre-designed sample reports are provided for use. Metastorm ProVision users may employ these reports, customize reports to their own preferences, or design new reports based on their requirements. Those who desire to Opportunities spell create or customize reports must purchase a copy of Crystal Reports. Once the desired reports are designed, out changes to the they can be generated by anyone who has a copy of business that allow Metastorm ProVision. the performance goals to be met to some degree. Opportunities require The Improve Phase During the Improve Phase, solutions are proposed, developed, time, costs, risks, evaluated and implemented. The possible solutions that serve as a and support to enact starting point are referred to as opportunities. An opportunity is a changes and attain chance to improve a business process, or some portion of a business goals. process (e.g., activities, deliverables, participants, etc.). Opportunities spell out changes to the business that allow the performance goals to be met to some degree. Opportunities require time, costs, risks, and support to enact changes and attain goals. Models that were created with Metastorm ProVision in previous phases to describe the business domain are examined in this phase to identify opportunities for improvement. The models to be examined include the critical requirements model, cause and effect model, organization model, and workflow model. The following are a set of sample questions that can be asked to identify opportunities: Inspect the Critical Requirements Model  How can the organization reach the goal?  Where can the process be improved to increase quality?  What efficiencies can be realized to increase process speed (responsiveness)?  What inefficiencies can be driven out of the process to reduce cost? Inspect the Cause and Effect Model  What improvement can be implemented to address a problem?  What opportunity can be realized by addressing the process as a whole?  What assumptions in the current process design are no longer valid? 22 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 23.  What has changed in the environment that can be leveraged as a competitive advantage? Inspect the Organization Model  Should the organization be restructured around the processes?  Can the skill sets within the organization be improved to perform the activities?  Can the organization (or its workers) be relocated to more conveniently pass work and deliverables? Inspect the “As-Is” Workflow Model Activity Opportunities:  Can the activity be more cost effective (ratio of value to cost)?  Can the activity be performed more quickly by taking advantage of technology for example?  Can the activity make more efficient use of its resources by sharing a workload leading to better utilization of resources?  Should the skill level of those performing the opportunity be increased?  Would different tools or resources improve the performance of the activity? Supplier Opportunities:  Can we communicate with our suppliers more effectively?  Can we assist in improving our supplier's performance by involving them in the process?  Are there other suppliers capable of providing resources?  Can the supplier perform some of the business process' initial activities to relieve the business domain of that responsibility? Resource Opportunities:  Are there other resources available of higher quality?  Can resources be supplied in a form that is more usable by the business process?  Can resources be acquired in a more timely fashion? 23 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 24. Customer Opportunities:  Can communication with our customers be more effective by involving them in the process?  Are there other markets for our products?  Are there customer activities the business domain can The key is choosing perform to better meet the needs of the customer? the right combination  Can the customer perform some of the business of opportunities and domain's final activities, allowing for reduced prices or the right sequence of quicker response? change Product and Service Opportunities: implementation to yield the desired  Can the quality of our products and services be results. Costs, time, increased? risks, and support  Can products and services be provided to the customer levels must be in a more convenient form? weighed against the benefits of pursuing Intermediate Deliverable Opportunities: the opportunities.  Can deliverables be passed between activities more quickly?  Can deliverables be put in a usable form for the receiving activity?  Can the number of workflows be minimized to reduce hand-offs? Typically, several opportunities are available to assist the business in meeting its goals. The key is choosing the right combination of opportunities and the right sequence of change implementation to yield the desired results. Costs, time, risks, and support levels must be weighed against the benefits of pursuing the opportunities. 24 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 25. Opportunity Model Possible solutions are categorized and shown using the Metastorm ProVision opportunity model. For completeness, these opportunities are associated with the objects in the other models that describe the business. Quality W idget Opportunities S C E P Improve Improve Improve Improve Supplier Customer Employee Internal Relationships Relationships Performance Processes S.1 C.1 E.1 P.1 Shar e Improve Entir e Redesign Technology Quotation Process Production Response Education Processes Time S.2 Train E.2 P.2 Supplier C.2 Increase Update Personnel Extend Compensation Mfg. Product Equipment W arranty E.2.1 Incentive P.3 C.3 Compensation Maintain Reduce Existing Product Equipment Ship Times E.2.2 Increase Company-paid P.4 Benefits Acquire New Testing Equipment Metastorm ProVision Opportunity Model The implementation of these opportunities is shown by making changes to the “as is” workflow model, resulting in a “to be” workflow model. Hypothetical costs, timing and resource constraints are entered and the “to be” model is simulated. This is an inexpensive way to validate the proposed changes prior to implementation. With several proposed alternatives likely, there may be many “to be” models. The “as is” model is re-used as the starting point, or template for all of the “to be” workflow 25 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 26. models. Each of the “to be” workflow models is simulated and analyzed to find the most cost effective scenario. Process Execution An integral component of the Improve Phase, Metastorm‟s Business Process Management software – Metastorm BPM – enables Metastorm BPM organizations to automate processes, as well as provides ongoing enables management, control and monitoring. Business Process Management is organizations to powerful because it gives organizations the ability to directly impact the automate and cost, productivity, response time, visibility and profitability of their most improve processes critical business processes. based on real-time Because all of the applications share the Metastorm Enterprise platform, execution data. the Metastorm ProVision project results and optimized process models can be carried over into Metastorm BPM for automation and execution. With this capability, the organization is empowered to automate the process. Metastorm BPM Process Designer In the Improve Phase, Metastorm BPM helps Six Sigma teams:  Improve project sustainability by automating complex processes quickly.  Gain greater agility by allowing you to enhance and extend processes as business dictates. 26 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 27.  Improve staff utilization by sharing work.  Speed the process and improve communication by enabling customers and suppliers to participate directly in the process.  Speed the process by delivering work electronically.  Improve data quality by reducing data collection and Automating a data transcription errors. process reduces  Reduce errors and speed the process by integrating variability, existing systems into the process, including legacy enforces systems, ERP systems, CRM systems, databases and consistency and directories. adherence, and is the most effective Metastorm BPM is quick and easy to implement as part of a Six Sigma program and gives the organization the ability to automate method to business processes quickly with involvement from business users, ensuring project allowing the benefits of the Six Sigma program to be realized more gains are realized quickly. Automating a process reduces variability, enforces and sustained. consistency and adherence, and is the most effective method to ensuring project gains are realized and sustained. The Control Phase The Control Phase targets the on-going management of processes that were modified during the Improve Phase. Unlike the other Six Sigma phases, the Control Phase does not have a completion date; rather it ensures that the problems that were fixed stay fixed. During this phase a number of objectives should be realized for each improved process: Verify the solution works as planned. During the Improve Phase, the process was remodeled within Metastorm ProVision and simulated to estimate the degree of performance improvement. The improved process is initially implemented in one or a few sites (i.e., organizations or locations) for a trial period. During this period, a number of measurements are taken to verify that actual performance meets expectations. The improved process should be corrected as necessary based on this „real world‟ data that has been automatically collected by Metastorm BPM. Roll out the solution across the enterprise with Metastorm BPM. Based on the success of the trial implementation, the improved process is implemented across all portions of the enterprise performing the process. The process owner or owners are responsible for the on-going management and improvement of the business process. 27 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 28. By using Metastorm BPM, performers must follow the process and cannot revert to old procedures. Metastorm BPM Make sure the problem stays fixed. There is a basic tendency for the process performers to drift back to their previous method of work after a period of time. A subset of the process measurements is left in place to assure continued consistency. By using Metastorm BPM, performers must follow the process and cannot revert to old procedures. Another key factor in assuring process consistency is the standardization and documentation of new process. Metastorm ProVision‟s models and interpretations can be published as both Microsoft Word documents and HTML files that can be viewed interactively. This readiness of process information can be used as a training tool for those newly assigned to some portion of the process.  Ensure process flexibility for further improvements. The fact that process information is captured in Metastorm ProVision‟s repository makes it easy to keep it current. The “to be” models become the “as is” models upon implementation. These models can be updated with continuing improvements and made immediately available to anyone who wants to view them, even remotely through When a process is automated with Metastorm BPM, the process monitors itself and can alert process owners to any impending bottlenecks. Process owners can take advantage of active process dashboards that allow them to drill down to process items that are in danger of breaching a Service Level Agreement or have been sitting at the same stage in a process for more than a prescribed number of days and take action.  Ensure project gains are realized and sustained. Both live and historical information collected from automated processes can be viewed in Metastorm BPM‟s 28 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com
  • 29. dashboards—like the to-do and watch lists—and used for executive reporting, real-time monitoring, and trend analysis across key performance indicators. Metastorm BPM automatically captures real-time data, and creates real-time vital cause control charts and monitoring dashboards – allowing Six Sigma teams to determine if the processes perform to the level desired. Metastorm BPM also offers trend reports that indicate how the process performance has improved over time. Metastorm BPM Dashboard The Bottom Line Organizations can now realize more immediate and sustainable ROI from Six Sigma projects by using the solutions of Metastorm Enterprise as a DMAIC roadmap and project productivity solution. The seamless integration of Metastorm ProVision, Metastorm Discovery and Metastorm BPM allows Six Sigma teams to leverage real-time process data to analyze, evaluate, automate and make continuous process improvements that help realize the full potential of Six Sigma initiatives. © Copyright 2009, Metastorm Inc. All rights reserved. Business to the Power of 3, Enterprise Process Advantage, Metastorm BPM, Metastorm Discovery, Metastorm DNA, Metastorm Knowledge Exchange, Process Pod, ProVision, and the See.Think.Do image are either registered trademarks or trademarks of Metastorm Inc. Other product, service and company names mentioned herein are for identification purposes only and may be trademarks of their respective owners.4.21.2009. 29 | Achieving Six Sigma with Metastorm Enterprise www.metastorm.com