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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