Page 312 - Lean six sigma demystified

290 Lean Six Sigma DemystifieD

3. Measurements based on customer requirements provide an ideal way to
evaluate performance.
4. Detailed balanced scorecards can then be developed and linked to this one
by individual managers.
5. Results can be measured and monitored easily.

Long-term customer requirements invariably fall into one of three categories
(from the VOC matrix).

• Better quality—reliability and dependability
• Faster service—speed and on-time delivery
• Higher perceived value—lower cost

Short-term objectives translate these customer “fluffy” objectives into more concrete
ones that can be measured and improved to meet the targets (from indicators).

• Better quality—fewer defects
• Faster service—reduced cycle time
• Higher perceived value

Targets are the BHAGs that challenge our creativity and ability. Fifty percent
reductions in cycle time, defects, and costs are both challenging and achievable in
a 1-year period. But to do so requires highly focused, not random, improvement
work.
? still struggling

A balanced scorecard helps companies align all of their business activities.
When one part gets out of alignment (e.g., when Toyota focused on financial
growth instead of quality resulting in extensive recalls), it can cause a company
to stumble.

Quality Management Systems

Ultimately, methods and tools like a balanced scorecard, VOC, measurements
(e.g., control charts, histograms, Pareto charts, etc.) weave together into a sys-
tem for producing a quality product. Quality management systems come in