Patrick Goodrich @patrickgoodrich  Reputation - 78 Rank - Aluminum | I’m curious to see what some of you might have to say about this. DMPO & DMPU – value proposition or productivty measure or both?
Cost of Poor Quality (dollars and cents) – value proposition or productivity measure or both ? Also, I dont think there would be much agrument with saying that we use Sigma
(Z-score) to assign risk to processes. That being said, have any of you ever used Sigma (Z-score)as a KPI to report back to management ? |
MBBinWI @MBBinWI  Reputation - 1829 Rank - Silver | @patrickgoodrich – Not sure what DMPO or DMPU are. Most upper mgmt doesn’t care a whit about sigma (and fewer would understand z-score). Talk in management terms – dollars. You have either delivered more with the same inputs or delivered the same with fewer inputs. Or, you might have delivered more with fewer inputs – we call this a homerun (that’s a term that management understands). |
Mike Carnell @Mike-Carnell Reputation - 2401 Rank - Silver | @patrickgoodrich Why would you confuse the issue with the term value proposition? It is business the simplest metric for management is ROI – what did the project cost you and what did it yeild in benefits. We have used sigma/z score for management reporting because it does allow people to compare dissimilar things (jet engines to light bulbs to locomotives). Just my opinion |
Patrick Goodrich @patrickgoodrich  Reputation - 78 Rank - Aluminum | Mike…thanks for the insight on using sigma/zscore. I do agree, knowing the current sigma level allows us to gage where our COPG% might be running, a three sigma level process is obviously going to be much higher than a six sigma level process. I would think most management could relate to this pretty easily in understaning whether or not a process has gotten worse or has improved based on the movement of the sigma level. And of course, including a cost of poor quality baseline (dollars and/or percent change) for better or worse can also help. |
February 3, 2012Comments Off
