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Metrics Question

Six Sigma – iSixSigma Forums Old Forums General Metrics Question

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  • #51643

    Travis D
    Member

    We are currently looking for a metric that would indicate the level of depth our Lean Six Sigma program has achieved.  Wondering what others are using as Metrics besides Cost Savings for their Lean 6 Programs?

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    #179577

    Bill M
    Participant

    It all depends on what “level of depth” means doesn’t it? Define what it is you wish to accomplish – then the metric(s) for it are usually apparent. However, until you know what it is you are out to accomplish, well….you’re left with questions like this.
    Depending on your company, beginning with the corp. strategic objectives is usually a good starting point; set baselines, goals, categorize projects as to objective (Balanced Scorecard) and track performance by comparing baseline to achievement to goal.
    There’s no magic formula; depends on firm’s available capital, savings potential, market opportunities, personnel, geographic/potitical/legislative restrictions/limitations, etc. Get the point – no one size fits all. Get mngt to agree as to what is most important and fix it. Then do it again.

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    #179578

    Eric Maass
    Participant

    Travis,
    Well, in addition to cost savings, how about tracking cycle time for your Lean Six Sigma program?  Basically, if you reduce inventory as part of your program, your cycle time should improve, the Lead Time you quote to customers with high confidence should improve, you should be having to rush and expedite less often, and your % On Time Delivery should improve. 
    So…any subset of those might be very interesting that can paint a picture of how you are doing in satisfying customers in terms of delivery in a reasonable timeframe.
    Best regards,Eric MaassMBB, Motorola

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    #179580

    Bill M
    Participant

    Eric, he didn’t even indicate whether he is in the mnfg or service industry. How do you know he has inventory or that delivery within a quoted timeframe means anything to him? How can you make these suggestions? My opinion – you are way ahead of where you should be in making suggestions. Gotta get a whole lot more info first.

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    #179588

    Kluttz
    Member

    Service companies don’t have inventories or lead times?  Hmm, that’s news to me. 
    Personally, I don’t see the value of a “depth of engagement” metric aside from a marketing tool.  I’m not a fan of metrics that don’t drive some action, but if I had to do one, it would probably look something like this…..
    The metric should be a weighted sum of a handful of other metrics;

    LSS savings as a percent of annual budget (don’t get me started on savings calculations)
    % of employees who have contributed to a improvement project
    Overall score on engagement survey
    % of candidates actually achieving certification
    Some Hoshin Kanri metric that measures the % of corporate goals addressed by LSS projects
    etc, etc
    Run up each contributing metric against a 0-100 scale, weight each by relative importance (20%, 30%, 25%, etc), then calculate your overall score.
    Like I said, I’m not a big fan of metrics like these, but it should be reflective of your particular program. 
     
     

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    #179590

    Bill M
    Participant

    Union, I didn’t say service firms don’t have inventories or leadtimes. I said “How do you know he has inventory or that delivery within a quoted timeframe means anything to him?” Please don’t misquote me.
    Point is we have no idea what is important to his firm from his post – therefore we cannot possibly assess a metric indicative of success – by definition. You suggested some good likely metrics yet you don’t know if they are based on his firm’s objectives. Don’t know.

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    #179591

    annon
    Participant

    I would offer that perhaps the real benefit to this line of thinking would be investigate how the LSS efforts have impacted the organization’s strategic planning.  A Hoshin approach would be a very effective way to answer your original question about LSS objectives and how they might me measured or assessed against critical business processes and daily management activities.  Once you have this framework in place, then it is a rather simple matter to determine which Objective>Metic>Goal>Strategy sequence will meet your needs.  Best of luck.

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    #179598

    Kluttz
    Member

    Let me clear up any misconceptions you may have –
    He has inventory and lead time means something to him. 
     

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