Six Sigma Metrics

Organizational performance goals and metrics:

Profit

• Stockholder value
• Capital investments
• ROI
• Personnel costs
• Sales
• Profit Margins

Cycle Times:

• Existing cycle times
• Internal Benchmarks
• External Benchmarks
• Reduction in cycle times

Marketplace Response:

• Market Survey
• Analysis of returns
• New product development
• Customer retention
• Customer Losses
• Facilities Rating

Resources

• Cost of poor quality
• Variation reduction
• Percent defects
• Process capability studies
• ROI Projects
• Number of improvement projects

Metrics Do and Don’t’s:

• “Vital Few” : No more than 20 business level metrics
• Metrics should have past,present and future
• Metrics should be linked to meet needs of shareholders, customers and strategies
• Business level metrics to link to shareholder needs
• Operational level metrics to link to operations needs
• Process level metrics to link to employee needs
• Metrics should be consistent across the organization
• Metrics should evolve with strategy
• Metrics should have targets or goals