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Value Proposition vs. Productivity?

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  • #53953

    Patrick Goodrich
    Participant

    I’m curious to see what some of you might have to say about this.

    DMPO & DMPU – value proposition or productivty measure or both?
    Cost of Poor Quality (dollars and cents) – value proposition or productivity measure or both ?

    Also, I dont think there would be much agrument with saying that we use Sigma
    (Z-score) to assign risk to processes. That being said, have any of you ever used Sigma (Z-score)as a KPI to report back to management ?

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    #192206

    MBBinWI
    Participant

    @patrickgoodrich – Not sure what DMPO or DMPU are.

    Most upper mgmt doesn’t care a whit about sigma (and fewer would understand z-score). Talk in management terms – dollars. You have either delivered more with the same inputs or delivered the same with fewer inputs. Or, you might have delivered more with fewer inputs – we call this a homerun (that’s a term that management understands).

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    #192208

    Mike Carnell
    Participant

    @patrickgoodrich Why would you confuse the issue with the term value proposition? It is business the simplest metric for management is ROI – what did the project cost you and what did it yeild in benefits.

    We have used sigma/z score for management reporting because it does allow people to compare dissimilar things (jet engines to light bulbs to locomotives).

    Just my opinion

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    #192217

    Patrick Goodrich
    Participant

    Mike…thanks for the insight on using sigma/zscore. I do agree, knowing the current sigma level allows us to gage where our COPG% might be running, a three sigma level process is obviously going to be much higher than a six sigma level process. I would think most management could relate to this pretty easily in understaning whether or not a process has gotten worse or has improved based on the movement of the sigma level. And of course, including a cost of poor quality baseline (dollars and/or percent change) for better or worse can also help.

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