ERP – Accounts Payable and Receivable
Accounts payable and Accounts receivable modules are two important execution modules under finance segment of an ERP system. Financial relationship with vendors who are providing input to the organization in the form of goods and services are maintained in Accounts Payable (AP) module. On the flip side, the financial connection with customers who use output […]
The Fall of a Giant: Wal-Mart
The fall of Wal-Mart Wal-Mart has been a global retailing behemoth. The rise of Wal-Mart is an amazing story, but it seems like the fall will be equally spectacular. Just a few decades, after Sam Walton from Bentonville Arkansas, started building the world’s largest retail empire. The same empire is today facing an existential crisis. […]
Economics of the Electric Car
Tesla is the company that has propelled Elon Musk from obscurity to stardom. It’s hard to believe that the redundant electric vehicle market was made hugely popular by Elon Musk’s Tesla cars. Tesla cars are not an economy vehicle by any chance. Instead, the average price is close to $100,000. Tesla has become a role […]
Implementation of ERP System – Reengineering vs Customization, Big Bang or Phased Implementation
Implementation of ERP System, is a complex exercise, involving many process alterations and several legacy issues. Organizations need a implementation strategy encompassing both pre implementation and implementation stages. The fallout of a poor strategy is unpreparedness of employees, implementation not in conformity with wider business strategy, poor business process redesign and time and cost overrun. […]
The New NAFTA Deal
Canada and Mexico are the second and third biggest trade allies for the United States. Historically these nations have had a healthy relationship with very few trade disputes. This is the reason why the North American Free Trade Agreement, i.e. the NAFTA was said to be successful. However, President Trump has been extremely critical of […]
Although the Six Sigma process has tried to make the process of developing problem and goal statements into a science, however in reality it still remains an art. This combined with the fact that goal and problem statements go a long way into the execution of the project make it important to understand what are the components that make some statements better than the other. Here are a few tips in this regard:
Problem and goal statements that are effective are written from the customers point of view. It is important to understand that the customer here is not the customer like marketing would refer to. There are internal customers within the organization. Anyone who receives the output of the process is a customer. Project Champions that spend time in understanding the customers real needs and planning goal and problem statements accordingly do better than others.
The Customers point of view is important. However it is also important to understand that the customer assigns varying degree of priorities to the various needs. Hence the needs need to be prioritised and segregated. The needs that are critical to quality (CTQ) must be paid more attention to while preparing the problem and goal statements.
Numbers tell you a story. This statement is true when it comes to six sigma. Words can be subjective. Using numbers to express the problem ensures that everyone has a similar understanding of the problem and it is not prone to numerous interpretations. Also numbers hold the key link of transitioning from the problem to the goal. The Problem is a level of the number, when it reaches another desired level it becomes a goal.
Problem and goal statements must be written in as few words as possible. It is common practise to write long statements full of business jargons. However, the Project champion must ensure that both these statements have the least possible jargons and are written in the fewest number of words possible.
A good problem statement does not imply causes, does not point fingers and does not suggest solutions. It is a problem statement, its job is to define a problem as accurately as possible. Similar is the case with goal statements. Goal statements are not meant to suggest solutions or causes. They must suggest what the state of affairs would be in ideal conditions.
Inculcating these measures will make both your problem as well as your goal statement robust and help you effectively define the purpose of your project.
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