Page 187 - The Six Sigma Project Planner

strategy has a score of 9, but that comes from a strong relationship between the
regulatory compliance audit and the strategy. Since the audit covers all major
compliance issues, it’s entirely possible that this single metric is sufficient.
The columns represent the metrics on the top-level dashboard, although only the
differentiator metrics will be monitored on an ongoing basis. The metric’s target is
shown at the bottom of each column in the “How” portion of the matrix. QFD provides
a reality check on the targets. As you will see, QFD links the targets to specific Six
Sigma activities designed to achieve them. In the project phase, it is far easier to
estimate the impact the projects will have on the metric. If the sum of the project
impacts isn’t enough to reach the target, either more effort is needed or the target must
be revised. Don’t forget: there’s more to achieving goals than Six Sigma. Don’t hesitate
to use QFD to link the organization’s other activities to the goals.
The strategy is based on leadership’s vision for the company, which in this example is
that it be the supplier of choice for customers who want state-of-the-art products
customized to their demanding requirements. To achieve this vision, the leadership will
focus its strategy on four key differentiators: new product introductions, revenue from
new sources, intimate customer relationship, and R&D deployment time.
With our chosen weighting scheme differentiator, columns have a strategic importance
score of 5, indicated with a in the row labeled “Strategic Importance Score.” These are
the metrics that leadership will watch carefully throughout the year and the goals for
them are set very high. Other metrics must meet less demanding standards and will be
brought to the attention of leadership only on an exception basis. The row labeled
“Relative Metric Weight” is the product of the “Criteria Score” times the “Strategic
Importance Score” as a percentage for each column. The four differentiator metrics have
the highest relative scores, while product selection (i.e., having a wide variety of
standard products for the customer to choose from) is the lowest.

It is vital when using QFD to focus on only the most important columns!
Columns identified with a ✔ in the row labeled “Strategic Importance Score” are not
part of the organization’s differentiation strategy. This isn’t to say that they are
unimportant. What it means is that targets for these metrics will probably be set at or
near their historical levels as indicated by process behavior charts. The goals will be to
maintain these metrics, rather than to drive them to new heights. An organization has
only limited resources to devote to change; these resources must be focused if they are
to make a difference that customers and shareholders will notice. This organization’s
complete dashboard has 20 metrics, which can hardly be considered a “focus.” By
limiting attention to the four differentiators, the organization can pursue the strategy
that its leadership believes will make it stand out in the marketplace for customer and
shareholder dollars. 1

1
The key requirements probably won’t require explicit support plans. However, if they do, QFD can be
used to evaluate the plans. Key requirements QFD should be handled separately.

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