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