Six Sigma Enterprise Resource Planning (ERP) Explained For the Business Executive

Six Sigma Enterprise Resource Planning (ERP) is a method used by professionals trained and certified in the six sigma process who are looking to help a corporation improve its overall functionality and productivity. The goal of a Six Sigma professional is to work with company executives to improve quality in areas that may be struggling. The problems could stem from such areas as customer service, job satisfaction on the part of employees, production rates, or utilizing modern technology.

A top professional in these methods, the Black Belt professional, works out a project plan and discusses the main issues with the company executives. Sometimes, there is trouble within the financial departments of the company because resources have not been used as they should have been.

Very often, it takes a working project, run by a Black Belt professional, to make executives and employees understand how technology must be incorporated into business today. Technology has made many elements of business easier, faster, and more accurate. Statistics run through computers can be quickly double checked for accuracy. Most mistakes that end up costing company money are the result of human error somewhere along the way.

It is very important for business executives to realize that advancements in business technology cannot be ignored. Much of the business that takes place between companies today is done through electronic means. Technology has made its way into the corporate world in nearly every way.

When business executives begin to realize that they are not utilizing technology as they should, they will search for someone knowledgeable in Six Sigma methods. The executives rely on the Black Belt professional they consult with to choose the right team of people to work on their project. The Black Belt professional will choose each member of the team based on their qualifications to work in the particular industry and with the particular issues involved in the situation. When dealing with issues involving modern technology, finding individuals who excel in this area is a good idea. Some people might find technology to be confusing. Having someone experienced who understands the need for, as well as how to use, technology is helpful on these projects.

These Green and Yellow Belt professional team members will analyze the company for areas that need improvement in the way they utilize the technological resources available today. The information they receive will be further analyzed and studied for possible solutions. Implementing a plan of resolution may take specialized training for the individuals in the company that would be taking advantage of new technological resources.

The employees and executives of the company will all need to be made aware of possible changes that need to be made. In the long run, most companies find that new technological advances do make their jobs easier and results from testing more accurate. Working at the highest quality level possible in all aspects of the business is the ultimate goal of company executives.

It is a good idea for someone knowledgeable in both the Six Sigma Enterprise Resource Planning (ERP) method and the business industry in question to work on the team. If someone certified in the methods is already employed by the company, they have a much better chance of success in their implemented resolutions.

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Management Success Tips for Any Leader

Even though the workplace has become technical and filled with computers, software and operating systems, managers must keep in mind the human factor if they expect to get the best work from their employees.  There following are a few tips that any manager can follow to ensure they are getting the most from their workers.

In today’s increasingly digital society, most of the human interaction is missing from business today.  This is not always a good thing as rapport, trust, and employee relationships are all based upon face-to-face interaction.  These things are all just as important to a business’ success as productivity, streamlining, and future profits.

One successful method of getting quality work from employees is to properly train them.  Without training that is detailed and informative, employees may become confused.  Confused employees cannot work to their full potential because they are never sure if they are doing the right thing.  This can be extremely frustrating for workers, especially if they are qualified to do the job they were hired to do and have worked hard to reach the level of work they are currently enjoying.  If they are unsure if they are doing the job correctly, they realize it reflects badly on them and on the company they are working for.  This leads to increased employee turnover rates and decreased productivity for the business.  Once you have good employees who want to work for you, it is important to do everything you can to keep them around, as a business’ best asset is its workforce.  Without employees who know how to quickly and efficiently do their jobs, there will be no products to sell or customer service.

Another method for quality management success is to have an open-door policy and an open-door mind.  Leaders lead by example, showing their employees how to listen, how to speak effectively, and how to stay organized in their work.  Managers must listen to the concerns of the employees and address those concerns in a way that satisfies the employee.  Employees should never be confused about their role in the company and what it is they are there to accomplish.  It also lets the employee know that they are valued and appreciated for what they do.  When managers show employees respect by listening to them, they are instilling trust in the relationship.

Do not let yourself stubbornly use the same tactics with each employee, thinking this will motivate and encourage them to do their work.  All people are different, with different work ethics and elements about their life that are important to them.  One person may believe that a specific reward given by the company in return for hard work is not worth enough to them.  Others may see that same benefit as the best reward they could be given.  Management must tailor motivation and incentives to match the employees’ needs or desires and the culture of the company.  Some incentives should be created on a company-wide basis, while other incentives will only work on an individual basis.  

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Six Sigma Changed Manufacturing Forever

It did not take long after word started spreading about the success Motorola had improving production, for other companies to want to learn the secret. The quality of Motorola products improved considerably in the late 1980’s and it was because the CEO adopted the Six Sigma model. The model called for improving the manufacturing process to eliminate production problems that were costing Motorola millions of dollars.

Six Sigma is a quality control program that strives to produce a nearly perfect product every time it goes through the assembly line. Six Sigma, stands for the number that Motorola tried to obtain of less than 4 defects per 1 million units which has now become the industry standard. Five Sigma is just over 200 defects per million and the scale goes down from there. If a company is running at Three or Four Sigma, there are hundreds or thousands of problems.  This is when major changes in manufacturing are required.

When Motorola began the review of production in 1986, they found that most of the production lines were operating at Three Sigma or worse. The production problems were costing Motorola customers and the future of the company was threatened. Special teams of experts were employed to look at each step of the manufacturing process to determine where the defects were coming from and how they could be reversed. The experts were named after martial arts experts who work their way from yellow belt up to black belt.

When this method is used to improve manufacturing, the team member who is a black belt is in charge. He or she has been specially trained in quality control measures to overhaul the assembly line. They will employ a team composed of a variety of people including green belts and yellow belts who are also trained in the methodology but to a lesser degree. The collaborative approach is one of the key features in making sure that any company obtains its desired results.

It may seem unrealistic to expect that a company can manufacture a product with Six Sigma 99.9997% efficiency but it is definitely possible as many companies have proven. Assessing performance and analyzing the data to make sure that the goal has been achieved and is being maintained are a critical part of the process.

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Six Sigma Training - Spokane, WA City Council Trains 16 City Workers in Six Sigma

Six Sigma Training is critical to many different industries. Such is true in Spokane, WA, where a position has actually been created and approved by the city council. At about $120,000 a year in pay and benefits, the position is one that will be filled by an individual who can promote the efficiency of the city based on their understanding and training in Lean Six Sigma. Since Lean Six Sigma is designed to reduce and eliminate waste, making any business or organization more effective in what they do, it seems like they have chosen a great way to handle the situation.

As if that’s not enough, they also placed a vote earlier this year to train 16 city employees in Six Sigma Process, done through a $90,000 no-bid contract offered to Lasater Institute, which is based in Indiana. The purpose of this training and the job role that has been added is, of course, to reduce costs and provide a more factual method of problem solving for the city at an affordable cost. Spokane officials spent $260,000 to complete an efficiency report through a consulting group from California prior to all this, which has created controversy within the local government. Instead of relying on someone else for ineffective solutions, they have decided to give the city employees something that will empower them to change their own processes and make improvements where they see fit.

They’re basing their own use of Lean Six Sigma on the principle that every single successful Six Sigma Process had a centralized place where administration occurs, which is why they are also creating this and not just hiring an outside source to complete the process improvements. They feel that by empowering the city workers to make changes to their own processes, they will have better results than if someone with an outside perspective comes in and tries to change things.

According to the Spokane Spokesman on May 27, 2009, there is one former city council candidate that doubts the success of the program. She comments on the outsourcing of training to the center in Indiana and the potential for disaster that can come with ineffective Six Sigma Projects, telling city officials that if they aren’t prepared for that, their intentions could easily lead to worse economic conditions than those that are already being experienced. All in all, though, it seems that the city of Spokane has a great plan to utilize Six Sigma to keep their town efficient in even the toughest economic times.

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What Lean Manufacturing Will Do For Your Business

Lean manufacturing is a management system that sets out to achieve a continuous removal of waste in all aspects of your business processes. This is achieved through small improvements that are implemented in increasing proportions over a period of time. The benefits can be seen in three significant areas of the business. These are financial, industrial, and commercial.

Most people are familiar with the lean concept and can even give a more in-depth explanation of what it entails. The value of knowledge cannot be waived aside but it is more important to focus on the practical application of what is known for. The benefits of this principle cannot be seen without proper implementation. The remaining part of this article deals with the results that will be obtained after the elimination of waste from the manufacturing process.

The real benefit to the business is an improved production process which leads to an increase in profits. Various studies and research has shown that a lot of money is being thrown away daily with the use of inefficient production systems. A big enterprise has the ability to save thousands of dollars every year by making a number of small adjustments to prevent unnecessary waste.

Lean manufacturing has been correctly defined as a philosophy. It is a mindset that should be imbibed by all employees that are on the workforce. Most companies make the mistake of sending only senior officers for training. This sometimes makes it difficult to carry along the rest of the employees. It is important to get as many people as possible involved in the implementation. This will develop a group with a single mindset that is working towards the same objective.

The tangible results of this new system of operation will come out easily when there is a high level of employee morale. Change can only start when workers are ready to leave their old ways and adapt to the new. Once the concept of change has been accepted by the workers, the company will start to experience a more significant improvement in its operations.

There will be a great improvement in the relationship between senior and lower level employees. A standardized manufacturing philosophy will reduce the occurrence of problems between management and employees. A lot of practices that are detrimental to the success of the company will be eliminated.

Lean manufacturing will lead to the production of higher quality products with fewer defects. There will also be a reduction of inventory because each operation will produce only what is required. When there is a reduction in inventory levels, less space and less manpower will be needed for their management. Overall manufacturing flexibility will be enhanced and the work environment will be safer.

The company will be able to reduce the use of capital and have more cash at hand when adopting the Lean Six Sigma Philosophy. The greater emphasis on productive and profitable work will lead to a better return on investment. There will be an increase in product with the same level of investment. Delivery times will also be reduced because production is timed with customer demand.

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