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Page 1: Achieving Six Sigma with Metastorm Enterprise

© Copyright 2009, Metastorm Inc.

Achieving Six Sigma with

Metastorm Enterprise

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Executive Summary

Six Sigma is one of the primary quality initiatives of our time. In today‟s

rapidly changing and difficult business environment, Six Sigma helps

organizations gain improvements in process and product quality. Their

success lies in the ability to tie project results directly to improved

customer satisfaction ratings and bottom line savings.

The name Six Sigma is taken from the approach‟s statistical roots. If a

product or process achieves a Six Sigma level of consistency, then it is

experiencing only 3.4 defects per million opportunities (DPMO). In other

words, Six Sigma products and processes are 99.99966% consistent.

Such impressive results are realized because Six Sigma projects follow

a proven, five-phased approach known by the acronym “DMAIC”:

Define the problem area in objective terms

Measure the performance of products and processes

Analyze the problems to identify root causes

Improve the results by redesigning processes and

reducing variation

Control the processes to ensure the improvements are

permanent

To manage and execute projects, Six Sigma teams traditionally have

juggled a number of tools – including disparate diagrams, spreadsheets

and charts. Complex and inefficient, this fragmentation detracts from the

focus on critical business issues. And control systems in completed

projects often lack the robustness for sustained results. Without an

effective means to model, execute and monitor the process

improvements, Six Sigma performance levels are seldom attained.

Metastorm answers the demand for complete Six Sigma project

productivity and process management with Metastorm Enterprise. This

powerful, integrated combination of enterprise modeling, business

process analysis, and business process management tools enables Six

Sigma teams to effectively perform the entire DMAIC process. The

Metastorm Enterprise platform includes:

Metastorm ProVision® – A comprehensive suite for

enterprise and business architecture, process

discovery and business process analysis – allowing

Six Sigma teams to translate business strategy and

operational objectives into successful enterprise

change through models that describe enterprise assets

and their relationships. This understanding of the

enterprise serves as the context for effective Design,

Measurement, Analysis, Improvement and Control in Six

Sigma projects. Metastorm ProVision provides users

with a wide array of modelers and reports that directly

support Six Sigma initiatives.

Without an effective means to model, execute and monitor process improvements, Six Sigma performance levels are seldom attained. Metastorm answers the demand for complete Six Sigma project productivity and process management with Metastorm Enterprise.

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Metastorm Discovery™ – Takes business process data

collection and analysis to the next level. Organizations

use this solution to replace traditional methods of

gathering as-is process information and to formalize

process discovery activities. Metastorm Discovery,

which is part of the Metastorm ProVision offering,

eliminates the problem of having insufficient or

inaccurate data to optimally leverage Six Sigma.

Metastorm BPM® – A complete Business Process

Management Suite for roundtrip process life-cycle

management including design, automation, analysis,

and monitoring of an organization‟s human-centric and

integration-centric activities and processes. Business

Process Management is integral to Six Sigma because it

allows organizations to improve their most critical

business processes and has a direct impact on cost,

productivity, response time, visibility and profitability.

Metastorm Integration Manager – A high-performance

integration platform that automates system-based

business processes, provides secure managed file

transfer, and opens up legacy system applications for

use in new service-oriented applications. Metastorm

Integration Manager provides visibility into what is

happening at the system and data level – insight that

can be valuable in optimizing all levels of quality.

This paper reviews the five phases of Six Sigma and describes how

Metastorm can help organizations reach higher levels of process

excellence and more rapidly achieve quality objectives.

This paper reviews the five phases of Six Sigma and describes how Metastorm can help organizations reach higher levels of process excellence and more rapidly achieve quality objectives.

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Executive Summary ............................................................................................ 2 Six Sigma Project Overview ............................................................................... 5

Define ............................................................................................................... 5 Measure............................................................................................................ 5 Analyze ............................................................................................................. 5 Improve ............................................................................................................ 6 Control .............................................................................................................. 6

The Define Phase ................................................................................................ 6 Business Interaction Model .............................................................................. 7 Critical Requirements Model ............................................................................ 8 SIPOC Model .................................................................................................... 9 Cost/Benefit Analysis ...................................................................................... 12

The Measure Phase .......................................................................................... 12 As-Is Workflow Model ..................................................................................... 13 Process Discovery .......................................................................................... 14 RACI Model .................................................................................................... 16 Failure Mode and Effects Analysis ................................................................. 16

The Analyze Phase ........................................................................................... 17 Cause and Effect Model ................................................................................. 17 Process Simulation ......................................................................................... 19 Collaborative Analysis .................................................................................... 21

The Improve Phase ........................................................................................... 22 Opportunity Model .......................................................................................... 25 Process Execution .......................................................................................... 26

The Control Phase ............................................................................................ 27 The Bottom Line ................................................................................................ 29

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Six Sigma Project Overview

Six Sigma projects typically involve five phases: Define, Measure,

Analyze, Improve and Control (DMAIC):

Define

In the define phase, project objectives and boundaries are set. These

project objectives are based on the organization‟s business goals,

customer needs, and knowledge of processes that must be improved in

order to reach a higher sigma level. The primary outputs of the define

phase are:

Project scope visually related in a business interaction

model

Critical requirements model based upon “the Voice of

the Customer”

Voice of the Customer Report

Association matrices of critical goals to business

deliverables and business processes

Supplier-Input-Process-Output-Customer (SIPOC)

model for each business process

Impacted roles optionally structured in an organization

model

Definition of the project requirements

Cost/Benefit Analysis

Measure

In the Measure Phase, the goal is to pinpoint the location or source of

problems by building an understanding of existing process conditions

and problems. Important outputs of this phase are:

Process Discovery

The “as-is” workflow model, which aids in

understanding the business process, and identifies

where measurements should be taken

FMEA

RACI Model

Analyze

In the Analyze Phase, theories about the cause of process problems are

proposed, confirmed (or rejected) with data, and ultimately the root

cause(s) are identified. The primary outputs of the Analyze Phase are:

Six Sigma projects typically involve five phases: Define, Measure, Analyze, Improve and Control (DMAIC).

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Cause and effect model

Association matrix showing the impact on critical goals

by current problems

Detailed “as-is” workflow model

Simulation results of the current process highlighting

process problems

Collaborative analysis including Minitab, JMP and

Crystal Reports

Improve

In the Improve Phase, solutions are proposed, developed, evaluated

and implemented. The primary outputs of this phase are:

Opportunity model

“To be” workflow models showing possible solutions

Simulation results of the proposed solutions to evaluate

alternatives

Association matrix comparing opportunities to problems

Process execution for improved project sustainability

Control

During the Control Phase, a solution is determined for each process and

plans are made for its implementation. Putting a solution in place can fix

a problem for the moment. The Control Phase helps ensure that the fix is

permanent, and that steps are in place to refine and further improve the

new process over time. The creation of standards and documentation of

the new, improved process are important aspects of this phase, as is

the ability to obtain greater visibility and control over processes for

better compliance and quality control.

The Define Phase The Define Phase establishes the purpose and overall scope of the Six

Sigma project. The scope document describing a Six Sigma project

includes a clear statement of the project charter and business case (i.e.,

the motivation for the project).

The Metastorm ProVision enterprise modeling solution uses a

combination of business modeling and statistical analysis that is integral

to each phase of the DMAIC approach. Business modeling provides for

a concise structure and definition of all aspects of the business.

Statistical analysis aids in pinpointing current process problems, and

verifies the expected level of performance improvements a redesigned

process should realize. Metastorm ProVision produces a Business

Interaction Model, illustrating the impacted organizations and customer

The Define Phase establishes the purpose and overall scope of the Six Sigma project. The scope document describing a Six Sigma project includes a clear statement of the project charter and business case (i.e., the motivation for the project).

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base; a model driven by the requirements of the customer; and a high-

level SIPOC model for each of the processes within the scope.

Business Interaction Model

The Metastorm ProVision BIM creates the overall strategic view of the

business. This view covers the entire breadth of the Six Sigma project

from an organizational standpoint. It may encompass multiple key

business processes performed by the organizations shown in this

model, as well as show the organizational boundaries within the

business, and the primary relationships between both internal and

external organizations.

Since the entire enterprise is too large to address during a single

project, a typical Six Sigma effort covers a portion of the business

referred to as the business domain. The region in the center of the

Metastorm ProVision BIM represents this business domain. The model

defines the boundaries of the project by placing the business domain

within the context of its suppliers, customers and competition.

The Metastorm ProVision Business Interaction Model

The BIM concentrates on organizational relationships, which involve the

passing of goods and information across political boundaries.

Interactions with customers, suppliers, competitors, and major internal

organizations are evaluated to identify critical goals.

The BIM created in Metastorm ProVision serves as the basis for

identifying other components in the Define Phase, including the

Metastorm ProVision produces a Business Interaction Model that illustrates the impacted organizations, the customer base, and the customer requirements.

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customers that will be queried to identify critical issues and customer

requirements. In fact, each interaction has an organizational unit in the

role of the customer. This allows critical customer requirements to be

identified throughout the scope. Each major interaction serves as the

trigger for a major component or the result of a key business process,

and each of these processes is outlined using a SIPOC model. The

identified business processes then become the candidates for process

improvement and are mapped against the critical customer

requirements to identify priority.

Critical Requirements Model

A critical requirements model, created within Metastorm ProVision,

identifies issues that are important to the customer.

The requirements are categorized in the model using a general-to-

specific format. The customer-driven requirements are organized into

major categories, logically grouped by issues that are customer

focused. Example groupings include customer requirements that are

critical-to-quality (CTQ), critical-to-delivery, critical-to-cost and critical-

to-process.

Critical to

Process

Requirements

(CTP)

Eliminate

In-Queue

Time

Critical to

Delivery

Requirements

(CTD)

Price Widgets

Competitiively

Critical to Cost

Requirements

(CTC)

Test All

Widgets for

Compliance

Decrease

Material

HandlingPakcage

Product

Appropriately

Design

Quality into

Product

Decrease

Warranty

Claims

Critical to

Quality

Requirements

(CTQ)

Reduce

Product

Returns

Reduce

Production

Overhead

Reduce

In-Transit

Time

Produce

Widgets

Within

Specifications

Quality Widget

Critical

Requirements

Use

Widgets

with Little

Training

Metastorm ProVision Critical Requirements Model

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Critical customer requirements aid in scoping the Six Sigma effort by

helping the participants focus their improvement efforts. These

requirements express the issues that are the key drivers to customer

satisfaction. Such issues may determine the products and services

offered by the business, or influence the features and functions of

current products and services. The high-level customer requirements

shown in the preceding model facilitate the identification of detailed

customer requirements. These requirements typically contain specific,

measurable criteria to judge attainment of the goals. The next phase of

the Six Sigma project (Measure) captures the actual measurements of

these requirements as a critical attribute.

The BIM in Metastorm ProVision identifies the critical relationships

between the suppliers, customers, competitors, and major internal

organizations. These relationships express the key process variables

(deliverables) passed between participants. These deliverables will be

measured to assess the achievement level of the critical requirements.

A Voice of the Customer report is created between the critical

requirements and the deliverables identified in the BIM. This report

provides a picture of how the critical requirements relate to the

relationships between suppliers, internal organizations, and ultimately

the customers.

Metastorm ProVision Voice of the Customer Report

SIPOC Model

SIPOC is an acronym for Suppliers, Inputs, Processes, Outputs and

Customers and shows how these business entities interact at the

boundary of the process. Using Metastorm ProVision, a SIPOC model

can be built for each business process within the scope of the Six

Sigma project.

Critical customer requirements aid in scoping the Six Sigma effort by helping the participants focus their improvement efforts. These requirements express the issues that are the key drivers to customer satisfaction.

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The SIPOC model establishes the boundaries of a particular business

process. A business process is a time-bounded set of activities that

consumes resources and produces products and/or services. Each

process‟ SIPOC model provides the reader with a firm idea of the

beginning of the process (by showing its resources and suppliers), and

the ending points of the process (by showing its outputs and

customers). The SIPOC models provide a process-driven approach to

divide the entire scope of the Six Sigma project into manageable

partitions.

The SIPOC models define the high-level process participants that are

included in the scope of this Six Sigma project. The SIPOC model is

created after a BIM, or in place of it, if the scope of analysis is confined

to a single business process. A SIPOC model can be built using the

specific process under study as its domain. The following example

displays a SIPOC model built using Metastorm ProVision‟s SIPOC

modeler:

Metastorm ProVision SIPOC Model

The business processes identified in the SIPOC models are

associated with the critical business requirements. A

requirements-to-business process association matrix can be

developed using Metastorm ProVision. This serves as a cross-

checking mechanism to ensure a complete set of requirements

and processes have been identified. As with the deliverables,

business processes are associated to requirements using an

association matrix.

Component Parts

Venture Capital

New Technology

Completed Order

Fill Order

Capital

Markets

Component

Vendors

Research

Community

Manufacturing

Companies

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Typically, customer-driven requirements are addressed by the business‟

core processes (which produce the products and services delivered to

customers). Support processes (supporting the core processes, such

as manage finances) may address only a few customer-driven

requirements.

Metastorm ProVision Requirements to Business Process Association Matrix

Based upon the organizations identified in the BIM and the SIPOC

models, an organization chart can also be produced during the Define

Phase, illustrating the organizations and roles impacted by the Six

Sigma project.

A requirements-to-business process association matrix can be developed using Metastorm ProVision. This serves as a cross-checking mechanism to ensure a complete set of requirements and processes have been identified.

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Cost/Benefit Analysis

Another important step within the Define Phase that is enabled with

Metastorm ProVision is a cost/ benefit analysis. This requires the

gathering of financial data to quantify costs and benefits. A net present

value calculation can then be performed, and a cost/benefit analysis

chart can be produced as a result.

Metastorm ProVision Cost/Benefit Analysis Chart

The Measure Phase Armed with the deliverables from the Define Phase, the Six Sigma team

begins detailed work in the Measure Phase. The objective of the

Measure Phase is to evaluate how well customer requirements are

being met, and how efficient the organization is in meeting those

requirements.

The measurement data collected provides the basis for precisely

identifying the source and nature of existing problems that inhibit

meeting the customer requirements in an efficient manner. This is

accomplished by establishing a factual understanding (via modeling

and measurement) of the current processes. The investigation helps

narrow the problems that must be examined during the Analysis Phase.

These measurements also establish a benchmark against which

process improvements can be compared.

Armed with the deliverables from the Define Phase, the Six Sigma team begins the detailed work in the Measure Phase. The objective of the Measure Phase is to evaluate how well customer requirements are being met, and how efficient the organization is in meeting those requirements.

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As-Is Workflow Model

Before measurements can be taken, the Six Sigma team must

understand the flow of responsibility and how work is currently

performed within each process. To accomplish this, a current picture of

a process can be developed using a workflow model in Metastorm

ProVision. Creating a detailed model for each process provides the

following advantages:

Focus – A workflow model takes a large process and

renders it in manageable pieces for analysis.

Context – A workflow model puts critical problems in the

context of where and how they occur.

Targeted measurements – A workflow model identifies

where and when the measurements should be taken.

Obvious causes – Modeling a process can expose the

obvious problems occurring in the process. The obvious

errors are occasionally referred to as “low-hanging fruit”

because of the ease of identifying and correcting the

problem.

Using the SIPOC model as the high-level scope of the process, the Six

Sigma team uses Metastorm ProVision to build an “as is” workflow

model for each process. The workflow model is a visual representation

of the process, which clearly shows:

The beginning and end of the process.

Each activity that makes up the process and the

sequence in which they occur.

Where decision points occur.

The organization or role responsible for each activity.

Where work is handed off from one organization to

another (a frequent source of quality problems and

inefficiencies).

Where systems are invoked to support the process.

Major deliverables moving from activity to activity within

the process.

The complexity of the process (complex processes

usually have more quality problems than simple ones).

Before measurements can be taken, the Six Sigma team must understand the flow of responsibility and how work is currently performed within each process.

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A Metastorm ProVision “As-Is” Workflow Model with data from Metastorm Discovery shown in green

Using the workflow models as a guideline, the Six Sigma team develops

its sampling strategy. This strategy includes what to measure, how to

measure, how often to measure, etc.

The measurement data collected from Metastorm Discovery or created

within Metastorm ProVision can be directly exported to tools such as

Minitab, JMP or Microsoft Excel for detailed analysis in the third phase

of the DMAIC approach.

Process Discovery

Metastorm Discovery™ is an interactive process discovery tool

designed to enable faster and more accurate collection of data, process

understanding, and process metrics that can drive Six Sigma

measurement efforts.

Used for collecting and analyzing process data and performance

metrics on human-centric business activities, Metastorm Discovery

dynamically adapts to user responses and prompts the user with

questions that capture relevant cause and effect insights into process

activities as they unfold.

In the Measure Phase of Six Sigma projects, field users can employ

Metastorm Discovery to capture data through a handheld PDA or on

their PC as they engage in activities, ensuring that the data is timely and

accurate. The user-driven nature of the product reduces the need for

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costly consulting analysis and eliminates the need to have external

observers document process activities. Instead process details are

recorded by those who are closest to the activities and have the best

understanding of the activities‟ details. This hands-on approach not only

results in a more accurate view of the process, but it also involves

process participants in Six Sigma activities early in the cycle, easing the

impact of change management issues.

Metastorm Discovery Activity Dashboard Report

Process Discovery allows organizations to capture information about all

steps in a process – including manual and off-line activities. As part of

the combined Metastorm Enterprise platform, the data captured in

Metastorm Discovery can be leveraged by Metastorm ProVision as input

for modeling an “as is” process and analyzing potential improvements –

with the goal of optimizing the process to meet specific strategic

objectives, such as minimizing costs, accelerating response time, or

improving productivity.

The optimized process can then be deployed and automated in the Six

Sigma Improve stage through Metastorm BPM.

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RACI Model

Determining responsibilities for different types of decisions is an

important part of Six Sigma programs. A typical model used for this

purpose is called RACI, which stands for Responsibility, Accountability,

Consultation and Inform. A RACI model is the product of the Metastorm

ProVision workflow model.

Metastorm ProVision Activity Involvement Matrix (RACI)

Failure Mode and Effects Analysis

FMEA—failure mode and effects analysis—allows an assessment of the

risk to customers if a key process input were to fail. Using Metastorm

ProVision in the Measure Phase, the Six Sigma team can identify the

possible failures that can occur for each activity.

Once identified, three aspects of those failures can be reviewed and

quantified: potential failure effects, current controls, and recommended

actions to reduce risk. A risk priority number, or RPN, can be developed

for each activity, and the activities with highest RPNs can be acted upon

first to minimize risk of failure.

Using Metastorm ProVision the Six Sigma team can identify the possible failures that can occur for each activity. Once identified, three aspects of those failures can be reviewed and quantified: potential failure effects, current controls, and recommended actions to reduce risk.

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Metastorm ProVision Failure Mode and Effects Analysis

The Analyze Phase The objective of the Analyze Phase is to identify the root causes of

problems within the business processes. The analysis takes the form of

both process and data analysis. Process analysis examines how work is

performed. This analysis identifies inconsistencies, process disconnects

and other inefficiencies that lead to problems. Data analysis uses the

measurement data, gathered in the previous phase, and evaluates it.

Data analysis can suggest patterns, tendencies or possible causes for

the problems.

Cause and Effect Model

Simulation variables can be changed and multiple simulation scenarios

–as suggested by potential problems defined in a Metastorm ProVision

cause and effect model– can be completed to test variations to the

process. The analysis might also suggest the need for further data

collection to support problem identification.

The cause and effect model structures the root causes of the primary

problems in the business. This graphical representation of cause and

effect helps to visualize the impact relationship that problems have on

each other and serves as an interactive analysis tool for structuring the

problem investigation during the Analyze Phase. Its high-level broad

categories keep the Six Sigma team from concentrating on a single

problem area.

The cause and effect model is an interactive analysis tool for structuring the problem investigation during the Analyze Phase.

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As the Analyze Phase continues, the cause and effect model assists

with keeping track of which causes have been investigated, and which

have the greatest impact on the primary problems.

Metastorm ProVision Cause & Effect Model

Production

Variances

Parts Issues

Process

Issues

Equipment

Issues

People

Issues

Damaged in

Transit

Long

In-transit

Time

Poor Vendor

Training

Inadequate

Documentation

Inadequate

Testing

Poor

Process

Design

Outdated

Tools

Lack of

Capital

Expenditure

Poor

Equipment

Maintenance

Lack of

Motivation

New

Employee

Inexperience

Inadequate

Training

Temporary

Employees

Rough

Handling

Parts Get

Wet

No Update

Responsibility

Lack of

User

Manuals

Old

Technology

Construction

Old Design

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The cause and effect model is created within Metastorm ProVision‟s

problem modeler. The root causes can be mapped back against the

critical requirements using the tool‟s association matrix capability. This

relationship is another excellent exercise for assessing the priority of

developing solutions for the identified root causes. The root causes

associated to high priority requirements should be given greater

attention and focus.

Metastorm ProVision Requirement to Problem Association Matrix

Process Simulation

Often visual inspection and analysis of the workflow model can assist in

identifying the root causes of problems, which is an important aspect of

the Analyze Phase. Items identified during inspection include:

Bottlenecks – Bottlenecks are points in the process

where multiple flows converge on a single activity.

Bottlenecks prolong cycle time when certain inputs

arrive and must wait for other inputs, or there are

inadequate resources to manage all of the inputs.

Disconnects – Disconnects occur when the handoff

from one responsible participant to the next is poorly

handled. Typically, this is the result of deliverables not

being in a form that is usable by the receiving

participant, or an effective communication mechanism

has not been set up between participants. Disconnects

typically occur when the overall process has not been

properly designed.

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Redundancies – Redundancies are activities that are

performed repeatedly throughout the process by

different participants. Redundant activities waste time

and money and are not considered to add value by the

customer of the process.

Rework – Rework is recursion that occurs in the process

to correct errors. When deliverables “loop back” in the

process flow, additional cost is incurred to rework the

deliverables and time is wasted in delivering the results

to the customer.

Serialization – Serialization occurs when all activities

within a process are performed in sequential order.

While some processes may require this (e.g.,

manufacturing processes), opportunities should be

identified where activities can be performed in parallel.

When activities are performed in parallel the cycle-time

for the entire process is shortened.

In addition to the visual modeling constructs, the workflow model in

Metastorm ProVision can also capture meaningful data about each

component in the process, including:

Frequency of events that trigger the process

Activity timing

Transit times between activities

Activity costs

Required resources and commodities

These data elements can form the basis for additional theories

regarding process performance inhibitors (i.e., problems). The ultimate

form of process analysis is to use the workflow model as the basis for

simulating the process. Metastorm ProVision offers two forms of

simulation: Monte Carlo and Discrete Event.

Monte Carlo simulation is useful for calculating process

timing and analyzing the process‟ activity-based costs.

Monte Carlo simulation assumes infinite resources are

available to run the process in order to determine the

amount of resources actually necessary.

Discrete Event simulation is useful for analyzing

bottlenecks, resource constraints, excessive queuing in

the process, etc. Discrete Event simulation is more

sophisticated than Monte Carlo simulation because it

considers the frequency of events, the capacity of

activities, and the availability of resources. Metastorm

Discovery provides the critical data, collected

accurately and economically, to automatically be

carried into Metastorm ProVision‟s simulation capability.

The ultimate form of process analysis is to use the workflow model as the basis for simulating the process.

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Both simulators produce a variety of charts and graphs that facilitate

analysis of the process, revealing an even more detailed understanding

of process issues. Process simulations are a very quick and cost-

effective method for testing the results of changes to any part of the

process. Because simulations take no actual process time or resources,

the data generated by multiple simulation scenario runs can be

invaluable for identifying key process problems and assisting in

cost/benefit analysis.

Process Timing results produced for timing analysis within Metastorm ProVision

Collaborative Analysis

Minitab and JMP. As previously mentioned, during the

Analyze Phase, Metastorm ProVision can be augmented

with detailed data gathering and statistical analysis

tools, like Minitab and JMP. Modeling and statistical

tools, when used in tandem, can confirm or reject the

theories proposed in the Measure Phase. For example,

these statistical analyses can use simulation to pinpoint

the time and conditions where a process bottlenecked

or excessive costs were incurred. The Analyze Phase

produces verified theories of the source of errors and

quality problems.

Crystal Reports. Six Sigma is a data-driven process,

and reporting capabilities are critical in the

Measurement Phase. Rather than create a new

reporting environment that must be learned by Six

Sigma teams, Metastorm ProVision includes

BusinessObjects Crystal Reports controls. This provides

the flexibility to select and analyze data in multiple

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formats. To optimize performance, Metastorm ProVision

works in concert with Crystal Reports to extract only the

data needed to create the report. A set of pre-designed

sample reports are provided for use. Metastorm

ProVision users may employ these reports, customize

reports to their own preferences, or design new reports

based on their requirements. Those who desire to

create or customize reports must purchase a copy of

Crystal Reports. Once the desired reports are designed,

they can be generated by anyone who has a copy of

Metastorm ProVision.

The Improve Phase During the Improve Phase, solutions are proposed, developed,

evaluated and implemented. The possible solutions that serve as a

starting point are referred to as opportunities. An opportunity is a

chance to improve a business process, or some portion of a business

process (e.g., activities, deliverables, participants, etc.). Opportunities

spell out changes to the business that allow the performance goals to

be met to some degree. Opportunities require time, costs, risks, and

support to enact changes and attain goals.

Models that were created with Metastorm ProVision in previous phases

to describe the business domain are examined in this phase to identify

opportunities for improvement. The models to be examined include the

critical requirements model, cause and effect model, organization

model, and workflow model. The following are a set of sample questions

that can be asked to identify opportunities:

Inspect the Critical Requirements Model

How can the organization reach the goal?

Where can the process be improved to increase

quality?

What efficiencies can be realized to increase process

speed (responsiveness)?

What inefficiencies can be driven out of the process to

reduce cost?

Inspect the Cause and Effect Model

What improvement can be implemented to address a

problem?

What opportunity can be realized by addressing the

process as a whole?

What assumptions in the current process design are no

longer valid?

Opportunities spell out changes to the business that allow the performance goals to be met to some degree. Opportunities require time, costs, risks, and support to enact changes and attain goals.

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What has changed in the environment that can be

leveraged as a competitive advantage?

Inspect the Organization Model

Should the organization be restructured around the

processes?

Can the skill sets within the organization be improved to

perform the activities?

Can the organization (or its workers) be relocated to

more conveniently pass work and deliverables?

Inspect the “As-Is” Workflow Model

Activity Opportunities:

Can the activity be more cost effective (ratio of value to

cost)?

Can the activity be performed more quickly by taking

advantage of technology for example?

Can the activity make more efficient use of its resources

by sharing a workload leading to better utilization of

resources?

Should the skill level of those performing the opportunity

be increased?

Would different tools or resources improve the

performance of the activity?

Supplier Opportunities:

Can we communicate with our suppliers more

effectively?

Can we assist in improving our supplier's performance

by involving them in the process?

Are there other suppliers capable of providing

resources?

Can the supplier perform some of the business process'

initial activities to relieve the business domain of that

responsibility?

Resource Opportunities:

Are there other resources available of higher quality?

Can resources be supplied in a form that is more usable

by the business process?

Can resources be acquired in a more timely fashion?

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Customer Opportunities:

Can communication with our customers be more

effective by involving them in the process?

Are there other markets for our products?

Are there customer activities the business domain can

perform to better meet the needs of the customer?

Can the customer perform some of the business

domain's final activities, allowing for reduced prices or

quicker response?

Product and Service Opportunities:

Can the quality of our products and services be

increased?

Can products and services be provided to the customer

in a more convenient form?

Intermediate Deliverable Opportunities:

Can deliverables be passed between activities more

quickly?

Can deliverables be put in a usable form for the

receiving activity?

Can the number of workflows be minimized to reduce

hand-offs?

Typically, several opportunities are available to assist the business in

meeting its goals. The key is choosing the right combination of

opportunities and the right sequence of change implementation to yield

the desired results. Costs, time, risks, and support levels must be

weighed against the benefits of pursuing the opportunities.

The key is choosing the right combination of opportunities and the right sequence of change implementation to yield the desired results. Costs, time, risks, and support levels must be weighed against the benefits of pursuing the opportunities.

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Opportunity Model

Possible solutions are categorized and shown using the Metastorm

ProVision opportunity model. For completeness, these opportunities are

associated with the objects in the other models that describe the

business.

Metastorm ProVision Opportunity Model

The implementation of these opportunities is shown by making changes

to the “as is” workflow model, resulting in a “to be” workflow model.

Hypothetical costs, timing and resource constraints are entered and the

“to be” model is simulated. This is an inexpensive way to validate the

proposed changes prior to implementation. With several proposed

alternatives likely, there may be many “to be” models. The “as is” model

is re-used as the starting point, or template for all of the “to be” workflow

Quality

Widget

Opportunities

S

Improve

Supplier

Relationships

P

Improve

Internal

Processes

C

Improve

Customer

Relationships

E

Improve

Employee

Performance

S.1

Share

Technology

S.2

Train

Supplier

Personnel

C.1

Improve

Quotation

Response

Time

C.2

Extend

Product

Warranty

C.3

Reduce

Product

Ship

Times

E.2

Increase

Compensation

E.1

Entire

Process

Education

P.2

Update

Mfg.

Equipment

P.4

Acquire

New

Testing

Equipment

P.1

Redesign

Production

Processes

P.3

Maintain

Existing

Equipment

E.2.2

Increase

Company-paid

Benefits

E.2.1

Incentive

Compensation

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models. Each of the “to be” workflow models is simulated and analyzed

to find the most cost effective scenario.

Process Execution

An integral component of the Improve Phase, Metastorm‟s Business

Process Management software – Metastorm BPM – enables

organizations to automate processes, as well as provides ongoing

management, control and monitoring. Business Process Management is

powerful because it gives organizations the ability to directly impact the

cost, productivity, response time, visibility and profitability of their most

critical business processes.

Because all of the applications share the Metastorm Enterprise platform,

the Metastorm ProVision project results and optimized process models

can be carried over into Metastorm BPM for automation and execution.

With this capability, the organization is empowered to automate the

process.

Metastorm BPM Process Designer

In the Improve Phase, Metastorm BPM helps Six Sigma teams:

Improve project sustainability by automating complex

processes quickly.

Gain greater agility by allowing you to enhance and

extend processes as business dictates.

Metastorm BPM enables organizations to automate and improve processes based on real-time execution data.

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Improve staff utilization by sharing work.

Speed the process and improve communication by

enabling customers and suppliers to participate directly

in the process.

Speed the process by delivering work electronically.

Improve data quality by reducing data collection and

data transcription errors.

Reduce errors and speed the process by integrating

existing systems into the process, including legacy

systems, ERP systems, CRM systems, databases and

directories.

Metastorm BPM is quick and easy to implement as part of a Six

Sigma program and gives the organization the ability to automate

business processes quickly with involvement from business users,

allowing the benefits of the Six Sigma program to be realized more

quickly. Automating a process reduces variability, enforces

consistency and adherence, and is the most effective method to

ensuring project gains are realized and sustained.

The Control Phase The Control Phase targets the on-going management of processes that

were modified during the Improve Phase. Unlike the other Six Sigma

phases, the Control Phase does not have a completion date; rather it

ensures that the problems that were fixed stay fixed.

During this phase a number of objectives should be realized for each

improved process:

Verify the solution works as planned. During the Improve Phase,

the process was remodeled within Metastorm ProVision and

simulated to estimate the degree of performance improvement.

The improved process is initially implemented in one or a few

sites (i.e., organizations or locations) for a trial period. During

this period, a number of measurements are taken to verify that

actual performance meets expectations. The improved process

should be corrected as necessary based on this „real world‟

data that has been automatically collected by Metastorm BPM.

Roll out the solution across the enterprise with Metastorm BPM.

Based on the success of the trial implementation, the improved

process is implemented across all portions of the enterprise

performing the process. The process owner or owners are

responsible for the on-going management and improvement of

the business process.

Automating a process reduces variability, enforces consistency and adherence, and is the most effective method to ensuring project gains are realized and sustained.

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Metastorm BPM

Make sure the problem stays fixed. There is a basic tendency

for the process performers to drift back to their previous method

of work after a period of time. A subset of the process

measurements is left in place to assure continued consistency.

By using Metastorm BPM, performers must follow the process

and cannot revert to old procedures. Another key factor in

assuring process consistency is the standardization and

documentation of new process. Metastorm ProVision‟s models

and interpretations can be published as both Microsoft Word

documents and HTML files that can be viewed interactively. This

readiness of process information can be used as a training tool

for those newly assigned to some portion of the process.

Ensure process flexibility for further improvements. The fact that

process information is captured in Metastorm ProVision‟s

repository makes it easy to keep it current. The “to be” models

become the “as is” models upon implementation. These models

can be updated with continuing improvements and made

immediately available to anyone who wants to view them, even

remotely through When a process is automated with Metastorm

BPM, the process monitors itself and can alert process owners

to any impending bottlenecks. Process owners can take

advantage of active process dashboards that allow them to drill

down to process items that are in danger of breaching a Service

Level Agreement or have been sitting at the same stage in a

process for more than a prescribed number of days and take

action.

Ensure project gains are realized and sustained. Both

live and historical information collected from automated

processes can be viewed in Metastorm BPM‟s

By using Metastorm BPM, performers must follow the process and cannot revert to old procedures.

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dashboards—like the to-do and watch lists—and used

for executive reporting, real-time monitoring, and trend

analysis across key performance indicators. Metastorm

BPM automatically captures real-time data, and creates

real-time vital cause control charts and monitoring

dashboards – allowing Six Sigma teams to determine if

the processes perform to the level desired. Metastorm

BPM also offers trend reports that indicate how the

process performance has improved over time.

Metastorm BPM Dashboard

The Bottom Line Organizations can now realize more immediate and sustainable ROI

from Six Sigma projects by using the solutions of Metastorm Enterprise

as a DMAIC roadmap and project productivity solution. The seamless

integration of Metastorm ProVision, Metastorm Discovery and Metastorm

BPM allows Six Sigma teams to leverage real-time process data to

analyze, evaluate, automate and make continuous process

improvements that help realize the full potential of Six Sigma initiatives.

© Copyright 2009, Metastorm Inc. All rights reserved. Business to the Power of 3,

Enterprise Process Advantage, Metastorm BPM, Metastorm Discovery, Metastorm DNA,

Metastorm Knowledge Exchange, Process Pod, ProVision, and the See.Think.Do image

are either registered trademarks or trademarks of Metastorm Inc. Other product, service

and company names mentioned herein are for identification purposes only and may be

trademarks of their respective owners.4.21.2009.