Page 222 - Lean six sigma demystified

200 Lean Six Sigma DemystifieD

delay, and more cost. In the case of the emissions-testing program, the 100%
inspection process took time and money from taxpayers for a minimal reduc-
tion in emissions. And it was too error prone to deliver consistent results.
Identifying the wrong root cause can lead you down a path of waste, rework,
and expense that can be avoided.
Let your data guide you; don’t force the data to fit your pet hypothesis. Then,
once you’ve implemented your solution, verify that you’ve actually succeeded
at reducing the root cause and its effects. Otherwise, you’re not doing Six
Sigma; you’re just conning your company and customers and hastening the day
when the business will be shuttered forever.

Measuring Innovation

In the late ‘70s, I worked at Bell Labs developing software for the Bell System.
Although most software engineers still gag at the thought of measuring soft-
ware development, we were tracking cycle times, defects, and costs way back
then. So I never understood why anyone would think that you can’t measure
innovation. You just need to tweak the metrics a little bit.
In Christopher Meyer’s book, Relentless Growth–How Silicon Valley Innova-
tion Strategies Can Work in Your Business, he devotes a whole chapter to mea-
suring innovation! Here’s an abstract of his recommendations. He suggests that
the five classic measures to watch are
1. Performance. How well does the total solution perform relative to require-
ments and the competition? Sounds like quality function deployment
(QFD) and Design for Lean Six Sigma (DFLSS).

2. Quality. Defects and delay.
3. Timing (i.e., speed to market). Internal development schedule (cycle time)
and external market timing.
4. Financials. Cost, margins, and revenue expectations.

5. Development costs. Specific project costs.
Here are some key measures of innovation used in Silicon Valley.

• Cycle time
• Percent of product or service tests passed

• Turnover (personnel changes)
• Specification or requirement changes (changes)