Lean and Six Sigma
Loose Waste and Add Value to Your Business by Using Lean Six Sigma Techniques

Enterprise Resource Planning (ERP) – part 5

The following are the advantages of centralization of data by ERP systems in one place:

  • Problem of synchronizing changes between multiple systems is eliminated
  • Business processes that cross functional boundaries can be controlled
  • Complete top-down view of the enterprise is visible
  • Since a single structure contains multiple permissions and security models, loss of sensitive data is greatly reduced

ERP system also has some security features for protection against both outsider crimes like industrial espionage, and also insider crimes like embezzlement.  It has functions for implementation of internal controls.  It provides better integration with other kinds of information security tools.

But the ERP system also has its own disadvantages.  Problems mainly arise due to insufficient investment on training the employees on the ERP system, as well as absence of data protection policies regarding ERP systems.  Some disadvantages are listed below:

  • ERP software can be customized only to a limited extent
  • Redesign of business processes as suggested by ERP system may effect loss of competitive advantage
  • ERP system implementation can be quite expensive
  • The rigidity of ERP to adapt to a specific workflow required by some organizations leads to its failure
  • There are many integrated links which are effective only if other applications are accurate
  • Switching costs of ERP system is very high and reduces flexibility and strategic control at corporate level
  • If errors are made with regard to company boundaries, it will affect employees’ morale, accountability, and lines of responsibility
  • Resistance of departments to share sensitive internal information among them may render the ERP system ineffective
  • In case of large organizations where there are multiple departments, each having their own mission, resources, chains-of-command, etc., consolidating them as a single enterprise would not fetch much benefits

But the advantages of ERP system outrun the disadvantages, and ERP vendors are bringing out more sophisticated system patterns which are sure to benefit organizations.

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Filed under: Lean Tools and Techniques,Six Sigma Methodologies | No Tag
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April 21st, 2011 21:38:02

Six Sigma: misconceptions regarding Gauge Repeatability & Reproducibility Methodology

The following are some common misconceptions regarding GRR:

  • Single GRR is sufficient per family of gauges -  GRR relates to a complete measurement system – including the specification, part, operator, and method – rather than one caliper.
  • GRR will not pass using parts -  GRR can assess precision of a device of system. only if that system is measuring standard weights and blocks.  In case of changes in part like deformity occur in measurement, it is taken as a component of measurement system error.
  • It is necessary to report GRR results on PPAP documentation for each measurement -  It is not necessary, as usually, the Quality Engineer himself makes a good assessment.  Only if the characteristic is vital to safety, it requires valid GRR.  Otherwise, it is not required for easy measurement of parts with acceptable precision.  During PPAP reviews, customers may require additional GRRs.
  • GRR performance is very expensive -  GRR performance is inexpensive for simple devices, and the result can be utilized for assessment of subsequent measurements using the system.  Costs occur for additional measurements only.  Only in case of destructive testing, the costs are higher.
  • GRR must be within 10% to pass -  The final decision to accept the precision of measurement system is taken between the supplier and the customer.  GRR is just a tool for assessment, and not a deciding factor whether to accept the level of precision of a measurement system or not.

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Filed under: Six Sigma Methodologies | No Tag
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April 21st, 2011 21:32:58