| Six Sigma projects are strategy-driven, in the same | | | | will likely be best served by one of 2 main |
| way that the portfolio is driven by organizational | | | | methodologies that are Six Sigma specific: |
| strategy. So, how do the business drivers that are at | | | | 1. Design for Six Sigma (DFSS) - Processes that are |
| work result in some projects being Six Sigma projects, | | | | compliant with Six Sigma methods and metrics are |
| and others not? | | | | created within the project. |
| Business Drivers and Project Selection | | | | 2. DMAIC - The |
| Business drivers are the starting point for any project | | | | Define-Measure-Analyze-Improve-Control method is |
| selection process because of their close relationship to | | | | the 5 step Six Sigma process improvement |
| organization strategy. Business drivers form the | | | | methodology. |
| foundation for strategy. Strategy forms the basis for | | | | The Identification of Metrics |
| organizational goals. The goals can be translated into | | | | Identifying the key driving metrics within the |
| specific metrics for purposes of establishing | | | | organization is the key to success in identifying strong |
| benchmarks. The result of all of this is a set of | | | | candidates for Six Sigma projects. One of the most |
| initiatives wrapped up in a portfolio of projects and | | | | popular systems of organizational metrics today is the |
| programs. The type of metrics determines the project | | | | Balanced Scorecard. In the Balanced Scorecard, the |
| methodology, such as Six Sigma. | | | | management system that generates the metrics is |
| 3 Types of Metrics | | | | aligned with the company's strategy and goals. Metrics |
| There are 3 types of metrics that influence project | | | | are developed based not only on the financial |
| type or approach. | | | | perspective, but on 4 different perspectives for |
| 1. Business Metrics - typically measure financial | | | | measuring organizational effectiveness: |
| performance aspects | | | | 1. Financial performance - traditional way of measuring |
| 2. Operations metrics - measure various aspects of | | | | performance within a business |
| the operations for the enterprise at a macro level | | | | 2. Customer-centric view - measures alignment with |
| 3. Process Metrics - provide detailed information about | | | | customer needs, such as customer retention, |
| the processes being employed in the day to day | | | | satisfaction, loyalty, complaints, and related measures |
| operations | | | | 3. Internal business processes - these relate to |
| All 3 of these metrics support and relate closely to | | | | operational aspects such as throughput, work in |
| one another, and ultimately to the organizational | | | | progress, and project management effectiveness |
| strategy. But Six Sigma supports the detailed process | | | | 4. Learning and growth - relates to metrics around the |
| level activities, which are present throughout most | | | | concept of knowledge workers continuously learning, |
| functions within the organization. Thus any projects | | | | expanding competency in the right areas, and |
| that will ultimately be measured by process metrics | | | | knowledge sharing and collaboration |
| are candidates for Six Sigma projects. | | | | Whether by accessing Balanced Scorecard |
| Once a project is a candidate for a Six Sigma project, | | | | information or identifying some other source within the |
| it needs to be determined if the project will be best | | | | organization, it is critical to access definitive information |
| served by a more "classical" approach to process | | | | on the organization's key metrics. |
| improvement, or if the best path is a pure Six Sigma | | | | Prioritization of Six Sigma Projects |
| approach. The classical approach would go something | | | | The assumption is that at this point, it has been |
| like this: | | | | concluded that a certain project lends itself to the Six |
| 1. Ientify the problems to be solved | | | | Sigma approach. There are a number of positive and |
| 2. Define the problems clearly | | | | negative factors that need to be considered in |
| 3. Investigate the defined problems | | | | prioritization. Aside from alignment with strategy, |
| 4. Analyze the problems | | | | consideration must be made for urgency, size relative |
| 5. Solve the problems | | | | to resources, significance to the organization, impact, |
| 6. Validate the results or solutions | | | | risk, ease of application or implementation, and degree |
| If the project requires the greater rigor of Six Sigma, it | | | | of resistance within the organization. |