Six Sigma DeploymentBy Shree Phadnis
First Page > Six Sigma Deployment Introduction
It is very difficult to articulate the strategies of the organization in this given scenario. Withith help of the Kaplan and Norton score card philosophy presented earlier, it is fairly easy and at the same time enlightening for the organization to build the business process model and then continue on the strategy map of the organization. Below is shown a possible process model for the organization depicted earlier.
A possible strategy map for the organization depicted is shown below. Articulation of the strategy in a map as shown below helps clarify the strategic objectives of the organization and serves as an excellent communication tool to all in the organization so that there is a common understanding and alignment within the organization.
Fourth Step
Once the strategy map is completed the organization can now start looking at each of the objectives in the shareholders and customer perspectives, and identify various measures that will help in achieving the strategy. When identifying measures, organizations must try to focus on what needs to be measured to achieve the strategy rather than plug existing measures into the objectives. Measures selected need to have a right balance between Lead and Lag. Lag measures are metrics that are obtained after the event is over, whereas Lead measures are metrics that tend to measure the drivers that help reach the destination.
Identify the various benchmarks in the Industry for the various measures selected. Based on the current level of performance decide on targets for the organization. Below is an example of metrics for the strategic objective "XYZ always delivers to my needs".
Fifth Step
For the key core and support processes, develop high level process maps based on the concept of SIPOC (Supplier, Input, Process, Output and Customer). The process model developed earlier serves as an excellent resource. Identify key metrics for each of these processes. Return back to the strategy map developed and for each of the process strategic objectives select appropriate measures linking both the customer perspective measures identified in step four to the process perspective measures identified. Select process strategic objectives measures that reflect the customer's viewpoint. Conventional Six Sigma metrics like DPMO, Sigma Level, or Rolled Throughput Yield may be appropriate. Once the measures for the process strategic objectives are identified, identify measures for the learning and growth perspectives. As discussed earlier, remember to balance in Lead and Lag measures and identify suitable benchmarks for these measures.
Sixth Step
Deploy the organizational score card at the departmental level. During the deployment of the scorecard break up the measures as applicable to the department. This would ensure that the organization has appropriate metrics at all levels and and that they are integrated both vertically and horizontally within the organization.
Seventh Step
Once the organization is hardwired with the metrics, start collecting data on the metrics and identify on a continual basis various gaps in the organization. The champions training received by the Senior Management will be extremely useful in this phase as the champions will analyse data based on the type of cause (special or common) and then would work on whether a potential project is identified or not.
An implementation structure of Six Sigma modeled on this method is a sure fire method for ensuring maximum benefits from the Six Sigma strategy deployed within the organization.
"When you can measure what you are speaking about and express it in numbers you know something about it, but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meagre and unsatisfactory kind." --Lord Kelvin
First Page > Six Sigma Deployment Introduction
References
The Balanced Scorecard by Kaplan & Norton
About The Author
Shree Phadnis is a Master Black Belt at KPMG India, and is an ASQ Certified Quality Manager and Engineer. Mr. Phadnis is a member of American Society for Quality, and can be reached at shreephadnis@usa.net
