Overview

Six Sigma, a customer-oriented methodology to maximize an organization's profitability while producing the highest quality product, consists of two key components: methodology and measurements. Methodology is customer-centric and focuses on improving processes to achieve desired results. Measurements are in place to ensure that the methodology works easier said than done! In the current Six Sigma environment, methodology has become a project-based institutionalization of process improvement. Considering the successes and failures of well-known corporations, it is clear that leadership, goal setting, and measurement are the key factors that make Six Sigma work. Leadership emphasizes the cultural aspects of the methodology, goal setting lays the groundwork for aggressive improvement, and measurement is a verification of the improvement.

To ensure that desired improvements are achieved, measurements for profitability, quality, timeliness, cost, and customer satisfaction must be in place. The first step in implementing Six Sigma is to assess the state of the business (methods, material, machines, and employees), to identify strengths and opportunities, and to establish a baseline for key measurements. For areas with opportunity for improvement, establish improvement objectives prior to implementation of Six Sigma methodology.

The first challenge of the process is to identify the aspects of the business that should be measured. What is the simplest way to determine important aspects? Ask why. If the quality of a product or service is important, ask why quality is important to the company. The following questions may help your company to explore and identify desired measurements:

• Business objectives. Why is a...