Value Proposition vs. Productivity?

Patrick Goodrich February 3, 2012Comments Off

This topic has 3 voices, contains 3 replies, and was last updated by Patrick Goodrich 365 days ago.

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February 3, 2012 at 6:04 pm #177241
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 ?
February 5, 2012 at 1:20 pm #177252
MBBinWI @MBBinWI Reputation - 2593 Rank - Titanium	@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).
February 5, 2012 at 1:41 pm #177254
Mike Carnell @Mike-Carnell Reputation - 3168 Rank - Titanium	@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
February 6, 2012 at 6:35 pm #177310
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.

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