Typically, there are three measures of performance - customer satisfaction, total cycle time and first pass quality. Cost of poor quality is an effective metric of first pass quality. For effective utilization of the metric, it must be well communicated to the members of the organization.

The metrics, to be of any effect, must be customer-centric with focus on quality, service dependability and overall satisfaction. The metrics should be measurable over a period of time - not just a small block of it.

The metrics should be able to provide direct information at the point at which they are to be utilized, and they should be aligned to organizational goals and objectives.

Making a Correct Start

When business leaders feel the need to take up a Six Sigma initiative to bring about improvements in the business, they will have Black Belts, Master Black Belts and Champions do the job of determining the project.

Sometimes, with the aim of achieving something given to these, it may happen that the team brainstorms and comes up with a project definition that is way off track. This could happen if, for example, the champion wants the team to come up with a project for reducing the maintenance expenses. It may so happen that the team keeps expenses in mind and makes the project definition in line with a reduction in maintenance expenses.

It is often the case that the financial metric is not considered as a primary metric. The project scope should entail a study of all the factors related to the product.

Defining Metrics and Scoping Them

Rather than checking out the facts, sometimes some factors are based on assumptions. This leads to the study of areas that may not cover the entire scope or areas to bring about improvement. The Pareto Chart, Fish Bone Diagram and other Six Sigma tools are of great utility to focus on the areas for improvement to bring about results.

If you have a preconceived notion, you may cover a specific area for study though there are other areas of concern as well. The Pareto Chart and Fishbone Diagram are good pointers to areas of interest for improvement of the overall system.

Systematic usage of the tools available in the various stages such as Define, Measure and Analyze will enable teams to scope the project and find out the areas which are really responsible for the problems.

Metrics for a Good Project

With the start achieved in the right direction, the Analyze phase identifies areas which may lead to problems.

The Improve phase sees the setting up of metrics to ensure that the solutions the team has come up with are well-maintained to achieve the desired results as defined by the leaders in the initial stages.

With the primary metrics being correctly defined, the systems can work to their full potential and achieve savings as well as profitability.