| ign="center"> | | | | like discount terms, over/under shipments, and |
| Companies are just discovering the benefits of | | | | warranty entitlements, to the proper people. As a |
| combining BPM and Six Sigma. Ideal for enhancing the | | | | result, the teams were always one month behind. |
| long-term performance of business processes, the | | | | Honeywell combined its Six Sigma efforts with a BPM |
| BPM/Six Sigma union helps companies better | | | | initiative, accelerating the process. Now the company |
| characterize, understand, and manage entire value | | | | gets daily, weekly, and monthly information that |
| chains. It also helps companies improve control and | | | | managers can access at any time. Their percentage |
| predictability of corporate business processes and | | | | of exception-free invoices has jumped from 67 |
| generate sustainable enterprise improvements in | | | | percent to 75 percent. The jump unlocked about $30 |
| performance levels. | | | | million in accounts receivables, according to the |
| BPM aligns processes across an enterprise using | | | | company. The BPM/Six Sigma union also gave |
| technologies to provide visibility and management at | | | | Honeywell a much clearer cash flow forecasting |
| any point in a business process. BPM and associated | | | | capability. |
| technologies help model data flow, people, resources, | | | | Additional BPM/Six Sigma Applications |
| and systems in an organization. They also help build or | | | | Motorola uses the Balanced Scorecard at all its |
| modify processes to better align enterprise systems | | | | divisions to guide its Six Sigma projects. The company |
| with business objectives and market needs. | | | | took Six Sigma and implemented it corporate wide, |
| Unfortunately, BPM lacks the analytical tools to solve | | | | making it the means by which to execute the strategy |
| difficult and complex process problems. | | | | dictated by the Balance Scorecard approach. |
| Six Sigma, on the other hand, is a quality improvement | | | | Balanced Scorecard initiatives are often more |
| and problem solving methodology. It has the tools | | | | effective when they are automated through a BPM |
| necessary to solve the complex problems BPM can't | | | | system. |
| solve. Where Six Sigma falls short is in its ability to | | | | Crompton Corporation, a Middlebury, CN-based |
| collect huge amounts of data across enterprises, the | | | | specialty chemical company, uses BPM to track its Six |
| direct result of a lack of standardized process | | | | Sigma programs by region and byproduct line to see |
| monitoring technology. Six Sigma also falls short in | | | | how those projects are doing. Feeding Six Sigma data |
| controlling business processes. It often uses manual | | | | into its BPM system is faster and more accurate than |
| methods and controls, which inhibit its ability to sustain | | | | its previous approach. Now, Crompton tracks all it Six |
| long-term performance initiatives. | | | | Sigma projects using its BPM system. |
| Without BPM, Six Sigma may founder because | | | | Other companies employ the BPM/Six Sigma union to |
| executives lack the critical data needed to focus their | | | | improve product design. These companies stand a |
| efforts. Instead, the executives bounce all over the | | | | better chance of developing a new product right the |
| place looking for performance weaknesses, or they | | | | first time using Six Sigma. It can provide new product |
| focus on areas where successful performance | | | | growth projections and help in gathering data via focus |
| improvements provide only marginal results. With BPM, | | | | groups and surveys to determine customer |
| Six Sigma projects can pinpoint problems and address | | | | expectations and desires. BPM supplements those |
| the underlying causes. | | | | capabilities by providing current information in customer |
| Honeywell Improves DSO Metric | | | | buying patterns and attitudes and by forecasting future |
| In addition to identifying quality improvement targets, | | | | customer satisfaction. |
| BPM enhances Six Sigma projects by speeding the | | | | Use of BPM and Six Sigma To Rise |
| collection and distribution of critical data. Honeywell | | | | Combined BPM and Six Sigma are a powerful tool. |
| International, the Morristown, NJ, technology company, | | | | The two approaches are synergistic. What one lacks |
| recently applied Six Sigma to its accounts receivables | | | | the other provides and vice versa. Together, they are |
| process. Its efforts were initially stymied because key | | | | a better approach to understanding, analyzing, and |
| information was dated by the time it reached | | | | improving business processes than other |
| decision-makers. | | | | methodologies alone. Unfortunately, this union has not |
| When it came to the days sales outstanding (DSO), | | | | become a mainstream approach to improving |
| for instance, internal teams were assigned to monitor | | | | enterprise-related business processes. One reason |
| and catch invoicing mistakes and reduce that DSO | | | | may be that companies are unaware of how well |
| number. But it took too long to get data on categories | | | | these two initiatives work in concert with each other. |