Metrics
A Leadership Roadmap for Managing with Metrics
Nine practical steps that focus on facts and data can provide a roadmap for business leaders at all levels on how to use the Six Sigma method to drive strategy implementation.
Ask the Expert: The Topic – Six Sigma Metrics
David Henkin, a principal at The Vanguard Group, offers his views on Six Sigma metrics. He discusses ideas on metrics used by successful companies, Six Sigma metrics versus business metrics and the best ways to present metrics to upper management.
Be Consistent in Six Sigma Project Metric Selection
Inconsistent use of metrics can lead to lost opportunities and rework after a project ends. Using them consistently brings enormous clarity to the impact and benefit of a Six Sigma project and helps keep the focus on enhancing business capabilities.
Business Improvement Strategy, Masteries and Metrics
Many organizations that deploy Lean and Six Sigma fail to reach the level of improved performance that they expected. One reason for this often is a lack of a well-structured business improvement strategy on the front end of the deployment process.
Calculating Sigma Level for Project Planning Process Area
An organization’s sigma level in terms of key CMMI process areas can be measured via metrics related to that process area. Organizations not using Six Sigma also can use this technique to measure their sigma level in terms of project planning process area.
Can I extrapolate 3.4 defects per million to 34 defects per 10 million or 3400 defects per billion?
To help you better understand the nature of you question; let us consider a very simple example. Let us suppose that we go to the store – looking for fresh apples. Once there, we notice a sign that reads “3…
Can you explain shifting of 1.5 sigma in calculating Sigma level, including physical meaning of shifting?
Over time, there has been very fine debate (both positive and negative) surrounding the 1.5 sigma shift. As such, the on-going discussion well serves the need to “keep the idea alive,” so to speak. To this end, I have recently…
Core Set of Effectiveness Metrics for Software and IT
A basic-yet-powerful set of metrics gets to the heart of measuring organizational efficiency and effectiveness in software and IT organizations. These metrics also facilitate effective application of Six Sigma in software and IT organizations.
Defining Primary Metric: Starting Off on the Right Path
After a rocky start developing the project’s primary metric, the Six Sigma team was able to help increase the accuracy rate of dispenser maintenance calls, resulting in the potential savings for the company of more than a million dollars.
Deploying a Measurement System: What Does It Take?
The use of dashboards to measure process and business performance has become increasingly popular. As a result, many companies are revamping their measurement systems. Here is a framework for launching and deploying a new measurement system.
Exploring Defect Containment Metrics in Agile
While Design for Six Sigma (DFSS) and Agile software development seem to have different orientations, there is more linkage than meets the eye. Considering defect containment metrics, there is a positive tie between these two bodies of experience.
How are defects and opportunities determined for CTQs?
To begin, recall that a Critical-To-Quality characteristic (CTQ) is a vital product design feature (e.g., the strength of a material). Naturally, we recognize that the product (per se) does not necessarily have to be a piece of hardware – it…
How can I determine if my Rolled Throughput Yield (RTY) is acceptable?
Let us postulate that a certain process is comprised of three progressive steps, say A, B, and C, respectfully. Further, we note the observed defects-per-unit (dpu) at the first step to be dpu.A = .10. At the second step, dpu.B…
How can one calculate the Sigma level of a system at a business level, for example a marketing system?
Consider the case where a particular system is comprised of three subordinate elements. In this case, we will say the first-time yield (quality confidence) of each element is known to be .85, .90, and .95, respectively. The cross product would…
How do I determine defects per million (DPM) for Sigma values greater than 6 (3.4 DPM)?
Once is a great while, there is a need to estimate or otherwise approximate the “tail probability” of an extreme standard normal deviate – such as Z = 7, Z = 10, or even higher. For example, certain types of…
How is the defects per million opportunities (DPMO) to Sigma level and yield conversion chart determined?
We must understand the “Sigma” of a process is merely an equivalent unilateral figure-of-merit. As such, it is always regarded (and reported) as a short-term measure of capability. The metric can be directly computed when continuous data is at hand,…
How well does rolled throughput yield work as a primary metric?
Upfront, rolled throughput yield has a lot of sex appeal (and is an excellent instructional concept), but many discontinue its application after a short period of time — it is impractical for a relatively complex process. Recognize that most of the defect-centric metrics are usually better for purposes of quality reporting (and improvement efforts).
I am developing a scorecard for a project level Sigma score. How do you suggest a scorecard be developed to determine a Sigma value for the whole Project?
Creating a process scorecard is not an easy or straightforward task. It becomes even more difficult when the scorecard is comprised of continuous and discrete performance metrics, each having a unique level of complexity (defect opportunity space). Even more perplexing…
If a project doesn't meet the 6 Sigma level (as calculated on the Sigma Calculator on this site), is it a Six Sigma project? [details removed]
Seems to me that you have described a traditional quality improvement project. Based on the elements of your question, it is my understanding that: 1) Each “drawing feature” constitutes a “defect opportunity.”2) The customer’s minimum expectation was a quality level…
If our vendors have quality level of 3.5 sigma, up to what level of sigma we can achieve?
To open our discussion, we acknowledge that not all product (or service) opportunities should be Six Sigma. In the total scheme of things, some are not destined to be critical – to anything. For example, in a garden supply store…
If we need to define the COPQ metrics what should the ideal metrics be?
The best metrics are those that correlate to your business goals. If you are uncertain as to the extent of correlation – measure it.
Implementing a Customer Satisfaction Metric
To find if customers are happy with the products and services they are receiving, an organization must implement a metric for tracking customer satisfaction. This can be done by using a Servqual survey framework and a voice-of-the-customer matrix.
Is 7 Sigma possible?
Don’t know, never been there – I’m still striving for 5-sigma (at least on a personal level). Given where the world is right now, many followers of Six Sigma (including myself) would say that a capability of 7-sigma is pessimistically…
Is it possible to determine a corporate-wide Sigma level? How can the Sigma level be calculated?
So as to establish a corporate-level sigma value (per se), it is generally advisable to follow an established analytical model. Of course, any such model must be conducive to the hierarchical aggregation (pooling) of capability information and data. Generally speaking,…
Is RTY better to use even if it may not show a cost savings?
Do not employ money as the improvement variable (it is a symptom). Remember that RTY is a function of dpu. Since RTY and dpu are directly related, most would likely prefer the defect-centric metric. For more on this association, see this question.
My boss calculates our process Sigma at 3 Sigma, while I calculate it at 5 Sigma. Who is correct?
Perhaps you are both in error (as related to your Sigma calculations.) Do not be discouraged by such debate, as it is quite common among those new to Six Sigma. However, do be aware of a phenomenon I call “denominator…
Selecting Appropriate Metrics
Process metrics need to serve a purpose, be understood, and not be too cumbersome or complex to use. Fashioning appropriate metrics requires knowledge, experience and a lot of common sense. These examples are intended to help the inexperienced Six Sigma practitioner recognize the issues involved and the criticality of ensuring that the metrics selected and used at all levels of the organization are the appropriate ones.
Six Sigma Opportunity Counting
The nature of Six Sigma opportunity counting and related metrics like DPMO and sigma levels can be confusing. This article contains ideas to help with opportunities and defect counting on your Six Sigma project.
Six Sigma Software Metrics, Part 1
There are multiple measures and metrics available for the Six Sigma development of software. This article discusses the Total Containment Effectiveness, Phase Containment Effectiveness and Defect Containment Effectiveness.
Six Sigma Software Metrics, Part 2
There are multiple measures and metrics available for the Six Sigma development of software. This article discusses how to predict defect find and fix rates during development and after release.
Six Sigma Software Metrics, Part 3
There are multiple measures and metrics available for the Six Sigma development of software. This article discusses how to compare implementations within the company.
Six Sigma Software Metrics, Part 4
This article is the last of four parts. It presents a discussion of Opportunities For Defects (OFD), Defects Per Million Opportunities (DPMO) and Sigma levels. When comparing implementations across companies, using the common language of DPMO and Sigma levels will assist in understanding benchmarking data.
The Importance of Implementing Effective Metrics
You can’t control what you don’t measure. That’s why one of the basic tenets of Six Sigma is to develop process metrics
The Sigma conversion table displays yields that don't match my understanding of USL/LSL for the process. Could you please explain why is there is a discrepancy?
To facilitate an answer to your question, consider the following table. The first column is the given measure of process capability (provided in the form of Z). The second column is the corresponding “short-term yield” of the first column (based…
Three Steps for Aligning Projects to Business Priorities
Project selection is one of the most critical and challenging activities faced by Six Sigma companies. To be successful, the project selection process take into account business priorities. A three-step approach can help assure that success.
Time-based Metrics: Accounting for the Differences
Green and Black Belts produce time series plots of the primary Y metric during the measure phase of projects. The time dimension is either start-based or end-based, and the difference can be substantial. It is important to understand this difference.
Tips for Avoiding Common Metrics Challenges
Metrics programs face some unique challenges that need to be tackled successfully in order to derive real benefits. This piece reviews some of those potential roadblocks, as well as recommendations that metrics teams can use to avoid such problems.
Tips for Defining and Collecting IT Process Metrics
IT firms often begin initiatives to measure and collect data for process metrics as part of improvement initiatives. Practitioners responsible for deployment will benefit from understanding the strategic, tactical and operational aspects of metrics.
Using Core Effectiveness Metrics to Drive Improvement
After making a case for using cost-of-quality metrics, combined with defect data, as overall measures of software and IT organizational effectiveness. The next logical step is to illustrate how these metrics might be used to drive improvement.
Using Effective Metrics to Measure Production Test Flow
When undertaking a Six Sigma project to enhance production tests, choosing the right metrics is key. When selecting metrics, practitioners should consider the strengths and weaknesses of various traditional and alternative production test metrics.
Value Matters as a Key Metric for Six Sigma Initiatives
Some business organizations have come to recognize that measures of customer satisfaction may not be the best metric of business performance. As a result, more companies are beginning to use the more actionable metric of customer value.
We are in field of PCB manufacturing are using about 800 components. How should we decide the opportunities during calculation of sigma value?
Simply stated, an opportunity is merely “a set of conditions favorable to some end.” In view of the two possible fates of a CTQ – success or failure – we have the idea of a “yield opportunity” and that of…
What is the correct manner to count defects and opportunities, used for calculating process Sigma value?
As you likely know, the issue of “opportunity counting” is somewhat illusive. It is laced with many misconceptions. The seeming intuitive nature of a “defect opportunity” runs wider and deeper than what one would naturally expect. To help us better…
What is the logic behind a one tail defect, Or is it that this difference is very very negligible beyond 3.5 sigma?
Of considerable interest, this concept often mystifies newcomers to field of Six Sigma. As you already surmised, the referenced charts rely upon the assumption of a unilateral specification (single-sided performance requirement). From a “defect accounting” point-of-view, it should be fairly…
Why a process shift of 1.5 sigma is taken as a standard for calculations?
Right up front in our discussion, let us recognize that the”1.5 sigma shift” can be attributable solely to the influence of random error. In this context, the 1.5 sigma shift is a statistically based correction for scientifically compensating or otherwise…
Why is 1.5 subracted from the short-term estimate of capability (Z.st) to get the long-term estimate of capability (Z.lt)?
The capability of a process has two distinct but interrelated dimensions. First, there is “short-term capability,” or simply Z.st. Second, we have the dimension “long-term capability,” or just Z.lt. Finally, we note the contrast Z.shift = Z.st – Z.lt. By…
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