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Six Sigma Metrics October 1, 2007

Posted by Coolguy in Six Sigma.
Tags: ,

Organizational performance goals and metrics:


  • 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


  • 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


1. Metrics Management « Executive in wait - May 12, 2008

[…] Metrics management is also key skills to successful Solution Delivery role. These metrics can be financial, resource related, application related or process metrics. Some of the metrics Six Sigma suggests are here. […]

2. Six Sigma Introduction and Goals « Executive in wait - May 13, 2008

[…] Here is my post on Six Sigma metrics. […]

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