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IT and Systemic Risk and its Implications for Business
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ERP – General Ledger and Accounting Management
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DMADV is a six sigma methodology. It is used to design new processes or products where none exist and get it right in the first time.
This is a part of the DFSS “Design For Six Sigma” concepts which place focus on creating processes right the first time.
The focus of DMADV is on quantifying the customer needs in terms of specifications before trying to improve them. This reduces the ambiguity as well as provides a measurable basis for measurement of the improvements.
Purpose: The purpose of DMADV exercise is to build a new process or to re-engineer a process completely. It required a constant eye on the needs of the customer and finding the best solution to fulfill them.
The steps involved in the DMADV methodology have been outlined below:
Define Customer Needs: The DMADV begins by helping define the customer needs better. The difference is not trivial. While methodologies like DMAIC begin by defining the process requirements, DMADV is customer focused. The orientation is towards studying the implicit and explicit needs of a customer. Customer need not be a person or even an organization. The process that uses your output as its input can also be your customer. Hence the emphasis is on backward induction. One starts be thinking how they want things to be and work backwards.
Measure Specifications: At this stage, consumer needs are translated into metrics that can be measured. This is because unless something is measurable, it is difficult to objectively state whether any improvement has taken place. Specifications of the way needs are being met and they way they ought to be met give the BPM analysts an objective measure.
Analyze the Problem: At this stage the problem is analyzed on a deeper level. The behavior of each activity in the process as well as the value it adds is observed. Finally the problem point is found out and/or better ways of organizing the process are looked at.
Design to Meet Customer Needs Better: At this stage, many alternative processes are designed. These processes are then looked upon as alternative solutions and the one that meets the customer requirements best are chosen.
Simulate to Verify: The DMADV methodology uses objective statements to verify whether consumer needs are being met better. Simulations are run after the new process is deployed. The measurements are then compared with the previous measurements to ensure that improvement has taken place and in the right direction.
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Continuous Improvement and Business Process Re-Engineering
February 12, 2025
