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Macro Metrics Advice

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  • #54062

    Tony
    Guest

    We are in year 1 of a multiple year implementation of BPM, and I’m driving for our company. We are using a lean six sigma toolkit and in scope are 5 core processes/value streams. My COO (who is relatively unfamiliar with BPM methodologies) would like us to establish a goal for our BPM program. He does not want to use cost savings but instead would like us to pick a single AGGREGATED METRIC/GOAL across all 5 processes (ie. not 5 different goals/metrics). He is suggesting either the sigma calculation from Six Sigma or a metric from Lean.

    Questions:
    1) Six Sigma option- I’m a Black Belt and am used to seeing the sigma calculation for a single process, but have never seen it calculated/aggregated/reported as a single number that represents performance across 5 core processes. In talking to others, they have not seen this done either and have questioned this approach. Thoughts on this approach?
    2) I am less familiar with Lean metrics. Are there are metrics that you can think of that might fit his requirements for a single aggregated metric across 5 core processes? In working with Process Cycle Efficiency, a professor suggested using “Hours elminated” as a measure. Thoughts?

    Thanks for your advice! Tony

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    #193352

    HopeOverExperience
    Participant

    I would start by try to persuade your COO that this isn’t a good idea but if you really need to.

    For each process decide how you can tell you’ve got a good product e.g. quality, on time delivery, time to produce, cost to produce etc, and turn this into a basic pass or fail.
    Combine all components into one large pass/fail measure, you may want to weight the way you add these together if the procuts are widley different in cost and time, and then either produce as a Sigma or as percentage good if you want people to understand it.

    This way your COO gets one score but the departments have to keep a set of measures in place.

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