The purpose of business process management (BPM) is to assure the objectives of each department are aligned with the quality and long-term goals for the organization. BPM synchronizes activity across the lines of business and improves overall performance, capability, and nimbleness. With Six Sigma, business process management is completed through four strategies.
First, one needs to identify key processes. Identifying the key processes equates to identifying the steps and activities which are vital to the most important functions of the organization.. The end result is commonly a product produced or a service received.
Next, one needs to assign process ownership. Assigning process ownership determines who will investigate the key measures of each process and gather data. The ideal owner is a problem solving individual who can investigate, analyze, and resolve process issues.
The third strategy is to measure effectiveness. Measuring effectiveness is when one determines ways to obtain important data and then extract the information. This commonly refers to establishing a standard of measurement from which data is collected to illustrate current activity. Incidents of failure to meet customer expectations are registered as defects, a crucial term in regard to calculating Six Sigma performance.
The final strategy is to initiate improvement. Initiating improvement equates to identifying how to resolve the problem in the process, and implement the improvement. Once sigma has been calculated for key processes, process owners gather to report their results. Management recognizes the process failures that lead to substandard performance. It may be the first real chance for executives to grasp the reasons why past goals and objectives have been so hard to achieve. Using the factual and statistical data gathered through the Six Sigma process, management can begin to adjust processes and initiate improvements.
Six Sigma is an effective strategy for success because it bases decisions off of factual statistical information with processes that are coordinated according to the goals of the organization.
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