Phases of ERP Implementation
Like any other project, ERP implementation goes through various interconnected phases. These phases may be sequential but at occasions overlap. Normally, every phase has entry criteria, which needs to be fulfilled before the commencement of the phase. A phase is deemed to have completed when pre-determined deliverables are achieved. Various phases of ERP implementation, for […]
Braked Acceleration: A Case Study of the Indian Automobile Industry
From Maruti to Mercedes: The Evolution of the Indian Automobile Industry The Indian Automobile Industry has come a long way since the Independence times wherein its growth has broadly mirrored the changing lifestyle aspirations and the economic boom amongst the Indian consumers. Indeed, while the Ambassador car was the symbol of the Indian Automotive Industry […]
Companys approach to Inventory Health
Inventory means an item of value and asset in the books of the Company. This is the most important category of item that needs to be focused upon by the management for in its management lies the business efficiency as well as profits. Inventory holding is a must for any business organization that is into […]
The Use of Enterprise Resource Planning Applications in Finance and HRM
The Importance of ERP Software In previous articles on Finance and Human Resource Management, we discussed how the finance and HRM functions have evolved to become important support functions in organizations and not just appendages to the core processes of the organization. For instance, in earlier decades when manufacturing was predominant, finance and HRM were […]
Components of Commercial Value Chain
Introduction The concept of the value chain was introduced by Michael Porter. The concept helps categories’ activities undertaken by enterprise to deliver a successful product to a customer. The concept since its introduction in 1980s has become a forefront in developing strategies around customer delight and commercial success. The value chain is series of activities […]
The mention of the Measure phase of the Six Sigma module brings into mind pictures of statisticians performing complex operations on data to derive meaning out of it. While this is true to some extent, the complexity of the process is highly over-rated. True, that there is a tremendous amount of statistics involved. However, in recent times, the statistics part is being taken care of by the software. Humans need to understand the logical part of the process and provide input to the software and interpret its outputs. The major objectives of the Six Sigma module are mentioned below:
The Six Sigma project team needs to come out with an explicit list of vital inputs, desired outputs and process metrics that they are planning to track. The fact that there are probably hundreds of metrics makes it important to identify and list the vital few. This decision has large scale implications on the performance of the project and is usually taken by the Project Lead on the basis of data provided by the Six Sigma team and the Process Owner.
There have been many cases of measurement bias in Six Sigma history. The bias may have its roots in the complexity of the calculation, the wrong method of data collection or the bias of the person performing the exercise. However, methods have been developed to get rid of all these errors. Measurements are taken automatically, calculated automatically and sent to the concerned managers automatically who use pre-defined rules to make a decision.
One of the biggest challenges of this phase is to validate the fact that the measurement system in place is good for the purpose. We have discussed this challenge in detail in the section titled Management Systems Analysis.
Measure phase also includes collecting the measures that the current process has. This includes measuring the defects per million. Once the defects per million are calculated, the current Sigma Level of the process is found out. This gives the team an idea of the effort that may be required out of them.
A common practise in the measure phase is to put a figure in front of the losses that the organization is currently facing due to inefficient processes. This helps the management valuate the process and the Six Sigma team can bargain for more resources to successfully implement the project. The financial numbers help re-iterate the project value in front of the Project Champion and the Senior Management.
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Characteristics of Data – Central Tendency and Dispersion
February 12, 2025
Steps Involved in Conducting a Measurement System Analysis
February 12, 2025
