barcode dll for vb net SAMPLE MEASUREMENTS in Software

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SAMPLE MEASUREMENTS
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Developing measurements for a process requires a mind-set for accountability. With the spirit of accountability, the team can identify measurements that reflect the performance of the process itself and its relationship with the performance of the company. Measurements must be understandable, quantifiable, and economic. The data must be easy to collect and analyze. The measurements intended use is to identify opportunities for improvement instead of to punish someone for errors. The process measurements must also be linked to the Six Sigma Business Scorecard. A sample of measurements for various functions is shown in Figure 6-7.
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CHAPTER SIX
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Measurements Number of Errors per Requisition Total revenue Number of new customers Value of repeat business Number of proposals accepted to total proposals submitted Variance in on-time completion of design Completeness of design outputs Variance of design from target performance Changes after design release Reproducibility of design Receivables age Timeliness of financial measures or reports Invoicing errors Cost of poor quality Number of recurring problems Improvement opportunities Rate of improvement Planning Communication Employees satisfaction
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Quality
Inspection Audits Leadership
Management
FIGURE 6-7.
Matrix of measurements.
For each process measurement, the team must establish a trend chart to drive the rate of improvement. Since the goal for rate of improvement is aggressive, the range of values on the y axis changes significantly and can become invisible at lower values due to the wide range. The Log Normal trend chart, where each major division represents an order of magnitude instead of a linear increment of the value, can correct this situation. Figure 6-8 shows a chart with the goal line set for 3 years. A similar chart can be made for 1 year as well to magnify presentation of the data.
BPIn EXAMPLE
Based on the process measurements and the Six Sigma Business Scorecard, the customized BPIn is created as shown in Figure 6-9. The BPIn has been standardized for competitive
SIX SIGMA BUSINESS SCORECARD DEVELOPMENT
1,000,000 100,000
Six Sigma Goal Line
10,000 DPU 1,000 (PPM) 100 10
Year 1
Year 2
Year 3
FIGURE 6-8.
Six Sigma performance tracking chart.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Measurements Employees Recognition Profitability Rate of Improvement Recommendations per Employee Total Spend/Sales Suppliers Defect Rate Operational Cycle Time Operational Sigma New Business/Total Sales Customer Satisfaction
Category Abbreviation LNP LNP MAI EAI PSM PSM OPE OPE SND SAG
Category Performance Significance Against Plans 15 60 15 50 80 20 10 80 5 5 5 5 10 10 60 60 80 80 90 80
Index Contribution 9 7.5 16 8 3 3 4 4 9 8 71.50% 0.3355 37,275 3.27
Corporate Wellness (BPIn) Corporate DPU Corporate DPMO (number of executives = 9) Corporate Sigma
FIGURE 6-9.
Sample index report card for a medium-size company.
benchmarking. A company can compare its BPIn to its suppliers BPIn and promote teamwork. An analysis of the BPIn measurements in Figure 6-10 shows that most of the measurements are quantifiable, contain easy-to-collect data, and have a direct relationship to profitability. The two measurements that have an indirect relationship to profitability are employee
CHAPTER SIX
BPIn Measurements Quantifiable Ease of Data Collection Relationship to Profitability Yes Need to establish Important for customer 1. Employee Recognition a process satisfaction 2. Profitability Yes Yes NA 3. Rate of Improvement Yes Yes Yes 4. Recommendations per Yes Need to establish Critical for business Employee a process growth 5. Total Spend/Sales Yes Yes Direct relationship to profitability 6. Suppliers' Defect Rate Yes Yes Direct relationship to profitability 7. Operational Cycle Time Yes Yes, may take effort Will impact profitability directly 8. Operational Sigma Yes Yes, may be challenging Direct relationship for office functions to profitability 9. New Business/Total Yes Yes Critical for growth Sales 10. Customer Satisfaction Yes Yes Yes
FIGURE 6-10.
Analysis of BPIn measurements.
recognition and employee innovation. A company with multiple divisions can use the BPIn to develop an independent BPIn for each division and aggregate it for a corporate BPIn. The Six Sigma Business Scorecard and BPIn can be developed for a business of any size. The BPIn has been standardized to establish a benchmarking process between companies, including suppliers. The Six Sigma Business Scorecard measurements can be modified depending upon the business. The main intent of the Six Sigma Business Scorecard is to drive dramatic improvement internally and improve profitability. Initial application of BPIn at sample companies has resulted in a very acceptable and accurate indication of corporate performance.
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