Reference no: EM132224568
DMAIC model
DMAIC is the model which is used for problem solving behind lean six sigma. There are five phases or process in DMAIC, they are define, measure, analyze, improve and control.
Define: It is the first phase in DMAIC, in this stage the project team creates a outline of the process and tries to understand the needs of the customers of the business process.
Measure: here the project team starts collecting relevant data and they also focus on measuring what customer care about. They also monitor and measure the current process performance.
Analyze: here the team tries to understand the cause of the problem. It is very crucial stage which will help in finding a better solution to the problem.
Improve: here the project team will identify the root cause of the problem and tries to determine and develop a solution to it through brainstorm or from the collected data.
Control: this is very crucial because it helps the control team to monitor and plan to continue evaluating the success of the efficient process and they develop an alternative plan in case if there is a dip in performance.
Business performance management (BPM) refers to the business processes, methodologies, metrics, and technologies used by enterprises to measure, monitor, and manage business performance.
BPM is also known as corporate performance management (CPM), enterprise performance management (EPM), and strategic enterprise management (SEM) and has evolved to become a type of BI tool/technique. The most significant differentiator of BPM from any other BI tools and practices is its strategy focus. BPM encompasses a closed-loop set of processes that link strategy to execution thus optimizing business performance.
Because business performance management activities in large organizations often involve the collection and reporting of large volumes of data, many software vendors, particularly those offering business intelligence tools, market products intended to assist in this process. Because of this marketing effort, business performance management is often incorrectly understood as an activity that necessarily relies on software systems to work, and many definitions of business performance management explicitly suggest software as being a definitive component of the approach.
Since 1992, business performance management has been strongly influenced by the rise of the balanced scorecard framework, often depicted as a dashboard. It is common for managers to use the dashboard and balanced scorecard framework to clarify the goals of an organization, to identify how to track them, and to structure the mechanisms by which adjustments will be triggered to improve on the corporate strategy and direction.
In the past, owners have sought to drive strategy down and across their organizations, transform these strategies into actionable metrics and use analytics to expose the cause-and-effect relationships that, if understood, could give insight into quality decision-making.
QUESTIONS :
Business Performance Management (BPM)
1. BPM encompasses five basic processes: Strategize, Plan, Monitor, Act and Adjust. Select one of these processes and research the types of Software tools and applications that are available to support it.
2. List and briefly describe the phases of the DMAIC model and compare the five steps to the five BPM processes.