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Success Criteria

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  • #47258

    Sinnicks
    Participant

    What are some of the sucess criteria companies use to measure the health of an overall six sigma deployment? Expecially tthings like soft benefits and others..
     thanks
     
     

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    #157410

    dangwal
    Participant

    Like for most initiatives, metrics include:
    No. of projects completed in a year,
    % of people involved in projects,
    % of people trained etc.
    Regards,
    Nitin

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    #157415

    Rand12
    Participant

    How could you not list the most obvious? $$ savings. For many companies, one of the “requirements” to get hired is to complete X projects saving $xxx,xxx per project, per year. Really misses the point of real continuous improvement and kaizen.

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    #157418

    BritW
    Participant

    Terrible.  These are not measurements that matter at all.

    No. of projects completed in a year:  Who cares.  If you have 3 that give you an additional $5M to your bottom line, but do 10 that give you nothing – which is more important – quality of projects not quantity – that’s one reason why SS can fail – no connection to the burning platform or strategic plan – ugh.  Refer to TQM failure literature.
    % of people involved in projects – employee involvement is great (and necessary), but overklill can happen.  More isn’t always better.  More than 8-10 on a project is waste.  If you have 100% of the people in projects – who makes the stuff?
    % of people trained:  Not even ASTD would support this measure.  Doesn’t matter if you have every employee as a green belt – doesn’t mean every employee will care or be involved. Actually, making this a requirement is a way some meet this measure – take people kicking and screaming into it and it will fail (Ask Pepsi about “Right Side Up”).  Make training voluntary, then you will see who values it and who believes.
    Bottom line – I use 4 areas of measure from Balanced Scorecard.  Financial (the only one that really matters), Process Improvement (want to know how easier it is to make money), Customer Service (want to know that internal and external customers are happy so that I can make more money), and employee development (want to know my employees know enough to make me more money).
    None of the 3 measurements above will help me make money now and in the future – the ultimate goal (read Goldratt – good book).
     

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    #157430

    Rand12
    Participant

    I agree with you with all but the people trained part. If the culture of the company is ripe for it — training everyone in the 7 basic problem solving tools is very powerful. For it to work though, everyone (I mean everyone) has to understand them and believe it is critical to success to use the methods.

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    #157432

    NpBB
    Participant

    # trained is a bac metric – who cares? Its what the employees do with their new skills, not the fact that they have it.

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    #157437

    BritW
    Participant

    Train as many people as you like – it should still not be used as a measure of success.

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    #157456

    Fake Gary Alert
    Participant

    Try to  implement  2 equations:
    Y=F(X)
    Q*A=E

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    #157464

    Craig
    Participant

    I realize that finacial health is what it is all about over the long haul, but are you sure you want to say “the only one that really matters”? Pasted below. All of them really matter. How long long would continue to be profitable if you did severe cost cutting at the expense of quality and customer service? I am not saying that Six Sigma is about cost cutting. I was just commenting on a scenario where only short term profits are considered. Dont all of your scorecard elements really matter?
    Bottom line – I use 4 areas of measure from Balanced Scorecard.  Financial (the only one that really matters), Process Improvement (want to know how easier it is to make money), Customer Service (want to know that internal and external customers are happy so that I can make more money), and employee development (want to know my employees know enough to make me more money).
     

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    #157466

    annon
    Participant

    Basic Model:

    Corporate Purpose is to create long-term profitability for its shareholders
    Profitability = Revenues less Expenses
    Revenues are driven through repeat sales, which are driven by customer loyalty which are driven by the feeling of customer satisfaction, which is driven by the precieved value of the product.
    Value = quality / price
    Quality  is comprised of product features and their fitmness of use.
    Hence:  Quality can drive profitability via the excellence of its product offering relative to its market (improved revenue through increased market share, premium margin, etc) and the reduction of waste in its processes (reduced expenses). 
    Quality in process and product drive profitability, the ultimate goal of the public organization…the other metrics simply flow through the organization in support of this simple equation. If it doesnt directly link back to the quality of the product or process, who cares?
     

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    #157472

    BTDT
    Participant

    Fake Gary Alert:We are early in an green field implementation and I have had to tell some people that we are NOT going to start training waves and waves of Belts.We are starting with the senior manager in charge of a major cultural change initiative and doing basic CAP stuff. They are thrilled! We are using some of the very basic CAP tools to build the agreement for changing the status-quo. They had never done a GRPI and the HR person LOVED it.The quote from the Manager(Supply Management) is”What you did in one hour took us three months.”(What they did didn’t stick because of buy-in problems)They are a government client and the usual revenue growth and margin stuff falls on deaf ears.Q*A=E ROCKS!Cheers, BTDT

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    #157774

    sathish.chandran
    Member

    Hi,
    To measure the impact of six sigma deployment, you may look at a dashboard called six sigma engagement and effectiveness index.
    You need to identify parameters that you need to measure on the engagement side (like, no.of trainings, no.of people trained, no.of projects taken up etc) and on the effectiveness side (like financial impact, no.of improvement made etc)
    This is nothing but the health check for a successful deployment. You may also look at giving weightage for each parameter
    with regards
    sathish chandran

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