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Metrics Management May 12, 2008

Posted by Coolguy in Service Delivery, Six Sigma.
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Benchmarking and analysis of KPI’s against best practices is critical to the success of any internal service delivery organization. Almost every other organization has some sort of KPI’s of some sort in place to measure and monitor performance. Metrics management is also key skills to successful Solution Delivery role.

Six Sigma advocates three levels of metrics: business level metrics, operations level metrics and process metrics. Some of the metrics Six Sigma suggests are here.

Business Level Metrics

These metrics are typically financial and operational summaries for shareholders and management. Balanced scorecards is widely used for business level metrics. IT can be viewed either as a cost center or a profit center in companies. Based on this financial management for solution delivery is responsible for:

  • Estimating costs of projects accurately working with vendors, where necessary
  • Costs of providing services and undertaking projects fall withing approved budgets
  • Tracking expenses against allocated budgets
  • Helping Senior Management understand the total cost of completing an initiative
  • Plan IT costs for maintaining and improving ongoing services
  • Charge back IT investments to business units, where applicable

Operations Level Metrics

These relate to cost, time and resource to produce products and maintain services. Examples specific to IT include:

  • Resource utilization metrics
  • SLA Metrics
  • Capacity Metrics
  • Availably Metrics
  • Service Continuity Metrics

Process Metrics

These are detailed metrics form process level. Examples include

  • Agility in responding to a change
  • Reduce total released defects, Total Containment Effectiveness (TCE)
  • Fix defects closer to origin, Phase Containment Effectiveness (PCE)
  • Compare implementations within company, Function Point Defects per KLOC
  • Benchmark with other companies, Six Sigma that tracks Defects per Million Opportunities (DPMO)


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Balanced Scorecard October 1, 2007

Posted by Coolguy in Six Sigma.
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Balanced scorecard is a system that translates a company’s vision and strategy to meaningful measures. Balanced scorecard focuses company’s attention on four perspectives of vision and strategy:

  1. Financial : How will we appear to shareholders ? ~ ROI, Cash Flow, Sales backlog
  2. Internal Business Process: What business process should we excel at ? ~ Reduce Rework, Cycle time, Setup times
  3. Learning and growth: How will we sustain our ability to change and improve ? ~Employee surveys, Employee suggestions, training budgets.
  4. Customers: How should we appear to our customers ? ~ Customer surveys, complaints logged, Market Share.

Steps for building a balanced scorecard are:

  • Gather information for scorecard through interviews with senior management
  • Prepare a rough draft and refine with other levels of management
  • Develop vision, objectives and measures for the scorecard
  • Develop an implementation plan
  • Review balanced scorecard periodically

Six Sigma Metrics October 1, 2007

Posted by Coolguy in Six Sigma.
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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

McCabe’s Cyclomatic Complexity June 20, 2005

Posted by Coolguy in Software Development.
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McCabe’s Cyclomatic Complexity

OO Metrics June 20, 2005

Posted by Coolguy in Software Development.
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Metrics 1.3.5

A Software Metrics Primer February 7, 2005

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A Software Metrics Primer