GSMI offers a comprehensive library of blogs, Articles and White Papers, discussing today's hottest and leading management methodologies and strategies. Use the navigation to scroll through and find the information that pertains to you and your performance management needs.
GSMI is always looking for the most up to date case studies and effective information to provide executive leaders today. If you have an interesting article to publish fill the form out below and contact us.
on 22-Apr-10 02:34.
Six Sigma Training - Enterprise Risk Management Applications Part 3
The fourth component of Enterprise Risk Management (ERM) applications will be explored here. Six Sigma Training is an effective tool in all areas of risk management, and there are eight basic elements to cover throughout the process. So far, it has been explained how Six Sigma Training and tools can benefit Internal Environment, Objective Setting, and Event Identification. The next principles of risk management to be explored include: Risk Assessment, Risk Response, Control Activities, Monitoring, and Information and Communication. In this article, you will learn about the effectiveness of Six Sigma Training in regards to Risk Assessment.
Risk Assessment within Enterprise Risk Management can be addressed using three basic tools of Six Sigma Training. Doing a risk assessment will allow any organization to predict and prepare for events that could affect the organization's ability to meet strategic and operational objectives. Six Sigma Training involves three tools that can quantify methods of risk assessment for an organization. The first is the Cause-and-effect matrix, which can identify critical parts of a process. It also gives numerical scores to various parts of the process to determine which create the greatest risks. The input is also scored, which refines the potential risk areas even further.
on 22-Apr-10 02:33.
Six Sigma and Enterprise Risk Management
BY Michael Young
Much has been written about the increasing uncertainty enterprises face due to globalization, restructuring, changing markets and increased competition. An increased call for transparency is causing organizations to focus on the benefits of enterprise risk management (ERM). Leading companies are using the methods and tools of Six Sigma to improve existing processes so they can better incorporate and generate information regarding risk.
The Benefits of Enterprise Risk Management
ERM, a framework for risk management, improves an organization's ability to accept the right amount of risk to capture strategic opportunities. Companies can avoid negative operational and financial surprises and conduct both internal and external reporting with greater confidence, allowing executives to govern and manage the business better.
Risk management also creates value by providing enhanced capabilities to align risk appetite and strategy, linking growth, risk and return. ERM minimizes operational surprises and losses, identifies and manages cross-enterprise risks, enables an integrated response to multiple risks, and facilitates a more informed risk-based decision making capability.
on 22-Apr-10 00:46.
Quality is a popular approach to process improvement, particularly among technology driven companies such as Allied Signal, General Electric, Kodak and Texas Instruments. Its objective is to reduce output variability through process improvement, and/or to increase customer specification limits through design for producibility (DfP), so that these specification limits lie at more than "six" standard deviations, or sigma's, from the process mean (I'll explain the quotation marks later). In this way, defect levels should be below 3.4 "defects per million opportunities" for a defect, or "dpmo" for short.
Although originally introduced by Motorola in 1986 as a quality performance measurement, 6 sigma has evolved into a statistically oriented approach to process improvement. It is deployed throughout an organization using an army of champions and experts called "black belts," a title borrowed from their martial arts counterparts. They command a rank-and-file made up of teams focusing on the improvement of the organization's processes. Just search the internet for "six sigma" and you'll come up with several informative descriptions of its history and current practice. The Six Sigma Academy, a Motorola spin-off, provides consulting service to many of the leading practitioners of this approach. What I want to focus on here though, is the 6 sigma metric itself, not the concept or the approach.
on 21-Apr-10 23:20.
he journey to organizational improvement involves a major investment. Any executive deploying Six Sigma within their organization can describe the plethora of time, effort and money spent in bringing such an initiative to life.
There are questions about organizational dynamics to consider:
Who will serve as Champions, Master Black Belts, Black Belts and Green Belts?
Will they engage in Six Sigma projects on a full-time or part-time basis?
How will the selection process work?
How will Six Sigma be communicated to management and employees?
Will the organization reward employees for improving performance?
Who will conduct the training?
How will the organization measure success?
on 21-Apr-10 22:29.
Business Operations Director, Six Sigma Business Excellence
Part of the holistic quality approach used at CIGNA combines the discipline and rigor of Six Sigma with Applied Behavioral Science to identify critical behaviors driving the right business results, not only by employees directly involved in the process flow, but also the management leadership behaviors required to reinforce the new behaviors supporting the improved process. We will review a case study of how critical behaviors by front line staff, managers, and directors, were identified and vertically aligned to support process improvements made to a transactional service process and how Six Sigma controls and measurement systems were implemented to track and monitor results.
Showing 1 - 5 of 5 Articles