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Six Sigma scorecard

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  • #32194

    Paul Grizzell
    Participant

    Other than the typical cost savings results, what innovative measures would be appropriate on a Six Sigma Scorecard?  I[‘m looking for leading measures that could be predictive in nature.  Some that I’ve seen – # of Green Belts trained, time to complete projects, etc.  I’m considering some that indicate leadership committment like # of on-time champion reviews, amount of Six Sigma time spent in senior leadership meetings, etc.
    What have others come up with as effective leading and lagging measures?

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    #85742

    Helper
    Participant

    How about cycletime reduction.
    Perhaps the impact of Six Sigma participation on traditional measures like absenteeism, employee turnover, strategic objectives accomplished/milestones achieved.
    Increase in output in operating groups.  Inventory turnover ratios.  effeciencie ratios.  etc….
     

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    #85744

    Cliff Adkins
    Participant

    Most of the things denoted as measure of success are in the reduction of poor cost of quality.  Lean Manufacturing or TPS (Toyota Production Systems) is the only method that provides means of cycle time reductions, standardized work, process control and reduction in inventories.

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    #85781

    NASSIF TADROS
    Participant

    If you allow me, you can go for many standardized scorecards, although I don/t think that is what you are after.
    What I believe that counts is when you include in your studies new variables, that haven’t been accounted for before but you imagine it might have a relation with your project and when you get a new relation it shall be a one that gives booming results to your studies and that would be an innovation.
    Always include such new variables after you have been done with your project in the regular way.
    Try it, might work.

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    #85801

    Tab
    Member

    It sounds as though you are thinking along the lines of applying Statistical Process Control (SPC) for managing your Sigma Sigma operations.  If so, it then follows that your predictive measures (x’s) are aligned with the process you’ve defined for the program.  It also follows that the predictive measure(s) are based on the outcome (Y) that has been defined.  The program could be based on the number of key processes managed using Six Sigma or, as seems often the case, it could be centered on the process improvement cost savings that are realized.
    Assuming cost savings are the key metric, my limited experience would lead me to predictive measures that are focused around the process improvement “ideas” that lead to process improvement projects.  I lean towards this tack because I’ve noted a number of process improvement projects with questionable cost savings or situations when there are few “good” projects for black belts to pursue.
    Would you please share more about your key output metric(s) (what has been defined as Critical To Quality) for the Six Sigma program and something about the process being used to manage its operation?

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    #86367

    Bill Woehr
    Participant

    I would recommend soemthing as simple as how the projects are imapcting your business’s key objectives. Show that the program is having a direct impact on the business results the company is trying to achieve.
    If you also want to place measures which determine if what you are doing is efficient and effective, then create some X measures which yield the Y result. Example of this is the amount of time that people are supposed to spend versus how much they spend, either as sponsors, champions, BB or GB, etc.
    We are currently looking at this ourselves in the group responsible for deployment as a Six SIgma project. We evaluate the business Y for Six Sigma, determine the critical requirements for success, our critical X’s and then measure the performance of those X’s. It has had a great Hawthorne effect when presented to management.

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    #86381

    Michael Ervick
    Participant

    Paul,
    The purpose for building scorecards and dashboards is for open publication and communication of results between stakeholders. (Kaplan and Norton)  They should not be built for the sake of having.  With that said, you must ask what are the outcomes your organization is seeking?
    Remember, what gets measured — gets done.  Therefore if you measure generalized behavoir you will see generalized results.  If you measure specific behavoir you will see specific results.

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