Page 39 - Six Sigma Demystified

20 Six SigMa DemystifieD

Appropriate metrics for tracking performance have the following
characteristics:

• A good metric is primarily customer- centered. If a parameter is important to
the customer, it should be important to your operations. Processes that
have a direct impact on customer- centered parameters must be measured
and controlled. Conversely, if issues that add no value to the customer
experience are the focus, then resources are wasted, and the focus should
be redirected. Chapter 3 provides techniques for focusing on the needs of
customers. Chapter 5 provides flow- down functions (big Y, little y) for
defining process- level metrics that meet business- level customer require-
ments.
• A good metric is linked to your organization’s strategy so that it can be clearly
identified by all as critical. The dashboard metrics discussed in this section
are linked to each of the main stakeholder groups (customers, sharehold-
ers, and employees), providing high visibility throughout the organization.
i
• A good metric is developed collaboratively, ensuring buy- n from all parties.
The collaborative development of the metric is realized by the Six Sigma
project team in the measure stage, improving buy- in by stakeholders.
• A good metric measures performance over time. Use of the metric to evaluate
the process over time is discussed below and further explained in the
“Metric Definition” section of Chapter 5.
• A good metric provides direct information so that it can be applied nearly im-
mediately without further processing. Immediate feedback allows for quick
responses to changing conditions.

An effective means of presenting business- evel metrics is through the use of
l
dashboards. Dashboards, as the name implies, are like the gauges in a car: They
provide immediate feedback of system status.
To understand how a car’s engine is performing, the most direct method is
to open the hood and look. At highway speeds, this can be messy, and even at
idle, the results are often less than conclusive. Unless there is catastrophic dam-
age, such as oil or steam shooting from the engine, most problems would be
undetected.
So it is with customer feedback. Waiting for feedback from the customer,
even requesting direct feedback of unfavorable conditions, may provide incom-
plete, inconclusive, or untimely information.