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Six Sigma – iSixSigma Forums Old Forums General Metrics architechture

This topic contains 9 replies, has 8 voices, and was last updated by  BTDT 12 years, 6 months ago.

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  • #45739

    AT
    Participant

    I am now faced with the challenge of developing a metrics hierarchy in an organization that has had a QMS for a long time but is just getting started on six sigma. The idea is to have multi level metrics from top to bottom and then deploy projects on some of these metrics based on opportunity/pain etc.
    What’s the best way to go about this task?

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    #150153

    Deep
    Participant

    I think one was is to build the metrics around Quality, Efficiency, Speed/Delivery, Internal/External customer satisfaction. These are generic areas around which you can build your metrics matrix and build them Top Down.
     

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    #150157

    qualitycolorado
    Participant

    Ramesh, .I recommend using a balanced scorecard approach:https://www.isixsigma.com/me/balanced_scorecard/
    Best regards,
    QualityColorado

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    #150191

    The Force
    Member

    You can start with a Balanced Scorecard approach
    Business – e.g. Profits, Revenues
    Customer – e.g. Sales, Satisfaction
    Internal Process – e.g. Productivity, Quality, Cost, Safety, Delivery
    Learning and Growth – e.g. Morale, Employee Satisfaction, Skills Rate
    After defining the Big Ys — drill down to Little Y’s from operational upto individual level

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    #150559

    MBB Bangalore
    Participant

    I like the BS approach, but with it , you won’t get low level metrics.
    Ideal will be BS + KPI tree aproach.
    Rgds

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    #150583

    BTDT
    Participant

    MBB-Bangalore:We start at the upper level with the usual four Balanced Scorecards as the upper level QFDs. You can build lower layers of QFDs based on lower level metrics, even individual projects.Cheers, BTDT

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    #150589

    GDS
    Participant

    We have some 25 metrics across the board and are discussing what 2 or 3 metrics are real indicators of how the business is doing.
    A different angle: What 2 or 3 metrics let you know how a team is doing?
    Basketball : Turnovers, Free throw %, points in the paint.
    Football: 3rd down conversion rate, Red zone touchdown %, turnovers
    Baseball: On base %, errors per game
    Now based on your business what are the 2 or 3 that really tell you how you are doing?
     
    GDS

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    #150590

    BTDT
    Participant

    GDS:We have done this a number of times with large companies. For one Six Sigma client we conducted a meeting with all the senior executive at a 2 day off-site meeting. We got 78 metrics down to:- Sales- Orders- Headcount- Accounts Receivable (minor)Your business will be different.Cheers, BTDT

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    #150591

    BritW
    Participant

    Where’s “profit”?

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    #150592

    BTDT
    Participant

    BritW:Surprised? So were we. These metrics were the ones they wanted on a daily/weekly dashboard. Profit was just not required on such a regular basis.They felt that project budgeting and approval controls were sufficient (they were).Cheers, BTDT

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